May 25, 2023

ISP Finance Services Limited (ISP) for the year ended December 31, 2022:

Net interest income declined 2% to $395.41 million (2021: $404.21 million). For the quarter, net interest income declined 17% to $89.91 million (2021: $108.97 million).

Commission expenses on loans increased 61% to $16.22 million (2021: $10.09 million). For the quarter, commission expenses on loans increased 4% to $4.89 million (2021: $4.69 million).

Gross profit declined 4% to $379.20 million (2021: $394.13 million). For the quarter, gross profit declined 18% to $85.02 million (2021: $104.28 million).

Other operating income soared to $14.08 million (2021: loss of $571,112) following a significant jump in the quarter results to $5.40 million (2021: loss of $387,017)

Total operating expenses declined 2% to $327.85 million (2021: $333.61 million) despite the 15% increase in staff costs to $112.80 million (2021: $97.84 million) as allowance for credit loss declined 20% to $93 million (2021: $115.92 million). For the quarter, total operating expenses declined 23% to $79.50 million (2021: $103.03 million).

Net profit increased 6% to $57.64 million (2021: $54.41 million) following taxation charge of $7.78 million (2021: $5.53 million). For the quarter, net profit soared to $9.95 million (2021: $1.12 million).

Earnings per share (EPS) amounted to $0.55 (2021: $0.52). For the quarter, EPS amounted to $0.09 (2021: $0.01). The number of shares used in our calculations is 105,000,000 units. Notably, ISP closed the trading period on May 24, 2023 at a price of $19.65 with a corresponding P/E ratio of 35.80x.

Balance Sheet Highlights:

Total assets as at December 31, 2022 increased 36% to $1.05 billion (2021: $772.27 million). The largest contributor to this upward movement was ‘Investments’ which soared to $225 million (2021: $10 million).

Shareholders’ equity as at December 31, 2022 was $520.77 million (2021: $463.14 million), an increase of 12% year over year. This resulted in a book value per share of $4.96 (2021: $4.41).

Disclaimer:

Analyst Certification – The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.

Company Disclosure – The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.