ISP reports a 11% increase in first quarter net profits

Date: May 16, 2018

ISP Finance Services Limited’s (ISP), for the three months ended March 31, 2018 reported Total Interest Income amounting $70.46 million compared to $65.53 million in 2017, an increase of 8%. Total income is broken down as follows:

Interest Income from Loans grew by 9% to total $70.38 million relative to $64.28 million reported in the same period of 2017.
Interest Income from Banks and Other Receivables amounted to $86,185 in 2018 as compared to $1.25 million in the last financial year.

Interest Expense totaled $5.63 million relative to $6.33 million in 2017; this represents a 11% decrease. As a result, Net Interest Income grew by 10% to total $64.83 million (2017: $59.20 million).

Commission Expense grew by 10% to $966,976 (2017: $880,129). Foreign Exchange Gain totaled $141,226 (2017: $1.23 million), while Other Income amounted to $35 (2017:11,081).

The company’s Total Operating Expense amounted to $54.85 million down from $51.32 million in 2017. The expenses are broken down as follows:

Staff Costs amounted to $27.16 million (2017: $26.72 million)
Allowance for Credit Loss totalled $7.50 million (2016: $3.84 million)
Depreciation was $1.40 million (2016: $1.46 million)
Other Operating Expenses amounted to $18.80 million (2016: $19.31 million)

Consequently, Net Profit for the quarter amounted to $9.15 million relative to $8.25 million in 2017.

As a result, EPS closed at $0.087 (2017: EPS $0.079). The 12-month trailing EPS is $0.485 and the number of shares used in our calculations is 105,000,000 units. ISP’s stock price last traded on May 15, 2018 at $17.99.

Balance Sheet Highlights:

The Company, as at March 31, 2018, recorded Total Assets of $517.01 million (2017: $463.77 million, an increase of 11% year over year. ‘Loans, net of provisions for credit losses’ contributed significantly to this increase by $115.31 million or 35% to close the period at $446.18 million. However, this increase was altered by the significant reduction in ‘Cash & Cash Equivalents’ by $64.36 million which stood at $31.18 million (2017: $95.54 million). ISP noted that this growth “demonstrates a strong and positive response from both new and existing customers to ISP’s loan promotions and product offerings.”

Total Stockholders’ Equity as at March 31, 2018 was $295.42 million (2017: $242.26 million), resulting in a book value of $2.81 (2017: $2.31) per share.


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