August 23, 2021

ISP Finance Services Limited’s (ISP), results for the six months ended June 30, 2021, Total Interest Income amounted to $204.23 million compared to $177.78 million in 2020, an increase of 15%. For the quarter, Total interest income amounted to $114.13 million (2020: $92.13 million). Total Interest Income for the six months ended June 30, 2021 was broken down as follows:

• Interest Income from Loans grew by 15% to total $204.23 million relative to $177.78 million reported in the same period of 2020.
• Interest Income Receivables amounted to $379 (2020: $84) for the period under review.

Interest Expense totalled $15.39 million relative to $14.88 million in 2020; this represents a 3% increase year over year. As a result, Net Interest Income increased by 16% to total $188.84 million (2020: $162.90 million). Net Interest Income for the quarter increased 27% to total $106.50 million (2020: $84.16 million).

Commission Expense fell by 13% to $3.10 million (2020: $3.56 million). Foreign Exchange Loss totaled $108,742 relative to a loss of $97,313 booked in 2020. Service fee amounted to $138,000 for the period under review. Other income totalled $41,100 (2020: $351,555).

As a result, gross profit increased to $185.54 million (2020: $159.60 million), while for quarter, gross profit rose by 26% to $104.63 million (2020: $83.24 million).

The Company’s Total Operating Expense amounted to $150.48 million up from $129.41 million in 2020. Expenses were broken down as follows:

• Staff Costs amounted to $57.20 million (2020: $58.49 million)
• Allowance for Credit Loss totalled $38.20 million (2020: $20.42 million)
• Depreciation was $3.84 million (2020: $2.63 million)
• Other Operating Expenses amounted to $51.24 million (2020: $47.88 million)

ISP reported a taxation charge of $2.79 million (2020: nil). Consequently, net profit for the period under review amounted to $32.27 million relative to a profit of $30.19 million in 2020, a 7% increase year over year. However, net profit for the quarter decreased 1% amounting to $19.50 million (2020: $19.65 million).

As a result, EPS for the period closed at $0.31 (2020: $0.29). The EPS for the quarter was $0.1857 (2020: $0.1872). The 12-month trailing EPS is $0.64, and the number of shares used in our calculations is 105,000,000 units. ISP’s stock last traded on August 20, 2021 at $25.00 with a corresponding P/E of 38.91 times.

Balance Sheet Highlights:

As at June 30, 2021, ISP reported total assets of $784.45 million, a 13% uptick when compared to $691.46 million in the prior year. This was attributed to the increase of the company’s ‘Loans, net of provisions for credit losses’ which closed at $688.98 million (2020: $609.62 million), up 13% .

Shareholders’ Equity as at June 30, 2021 was $441 million compared to $373.52 million in 2020. This resulted in a book value per share of $4.20 compared to $3.56 the prior year.

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