November 14, 2022

ISP Finance Services Limited’s (ISP) total interest income for the nine-month period rose 3% to $326.55 million (2021: $318.36 million); however, for the quarter, it declined 5% to $108.77 million (2021: $114.13 million). Of the nine-month total interest income:

• Interest income from loans increased by 3% to total $326.45 million (2021: $318.36 million).
• Interest income receivables rose to $ 105,718 (2021: $476).

Interest expense declined 9% to $21.05 million (2021: $23.11 million). As a result, net interest income increased by 3% to $305.51 million (2021: $295.25 million). For the quarter, net interest income amounted to $102.05 million (2021: $106.41 million).

Commission expense on loans increased by 10% to $11.33 million (2021: $5.40 million). In addition, Foreign exchange gain totalled $22,415 (2021: Loss of $87,095). Whereas, other income amounted to $8.65 million (2021: $41,000). There were no services fees (2021: $138,000).

As such, operating income increased 5% to $302.85 million (2021: $289.66 million). For the quarter, it increased by 3% to $107.35 million (2021: $104.12 million).

The company’s total operating expense increased 8% to $248.36 million (2021: $230.58 million). For the quarter, it rose by 1% to amount to $80.82 million (2021: $80.10 million). The expenses for the nine months are broken down as follows:

• Staff Costs amounted to $90.03 million (2021: $87.40 million).
• Allowance for Credit Loss totalled $69.75 million (2021: $58.30 million).
• Depreciation was $5.62 million (2021: $5.77 million).
• Other Operating Expenses amounted to $82.96 million (2021: $79.11 million).

Profit before taxation totalled $54.49 million (2021: $59.08 million) following a tax charge of $6.81 million (2021: $5.79 million).

As such, net profit for the period fell 11% to $47.68 million (2021: $53.29 million). For the quarter, it amounted to $23.21 million (2021: $21.02 million).

 As a result, EPS for the period closed at $0.45 (2021: $0.51). The EPS for the quarter was $0.22 (2021: $0.20). The 12-month trailing EPS is $0.46, and the number of shares used in our calculations is 105,000,000 units. Notably, ISP closed the trading period on November 11, 2022 at a price of $15.00 with a corresponding P/E of 32.63 times. 

Balance Sheet Highlights:

As at September 30, 2022, ISP reported a 5% increase in total assets to $838.13 million (2021: $799.38 million). Notably, the increase was attributed to a 73% increase in ‘Cash & Cash Equivalents’ to $78 million (2021: $50.98 million).

Shareholders’ Equity as at September 30, 2022 was $510.82 million (2021: $462.02 million). This resulted in a book value per share of $4.86 (2021: $4.40).

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