August 15, 2022
ISP Finance Services Limited’s reported Total Interest Income of $217.78 million compared to $204.23 million in 2021, an increase of 7%. For the quarter, Total interest income amounted to $113.23 million (2021: $114.13 million). Total Interest Income for the six months ended June 30, 2022 was broken down as follows:
- Interest Income from Loans grew by 7% to total $217.67 million relative to $204.23 million reported in the same period of 2021.
- Interest Income Receivables amounted to $105,673 (2021: $379) for the period under review.
Interest Expense totalled $14.32 million relative to $15.39 million in 2021; this represents a 7% decrease year over year. As a result, Net Interest Income increased by 8% to total $203.46 million (2021: $188.84 million). Net Interest Income for the quarter fell marginally to total $106.03 million (2021: $106.50 million).
Commission Expense grew by 157% to $7.97 million (2021: $3.10 million). Foreign Exchange Gain totalled $22,415 relative to a loss of $108,742 booked in 2021. There were no Service Fee (2021:$138,000) and Other Income (2021: $41,100) reported for the period.
As a result, gross profit increased to $195.48 million (2021: $185.54 million), while for quarter, gross profit fell by 3% to $101.76 million (2021: $104.63 million).
The Company’s Total Operating Expense amounted to $167.54 million up from $150.48 million in 2021. Expenses were broken down as follows:
- Staff Costs amounted to $61.35 million (2021: $57.20 million)
- Allowance for Credit Loss totalled $46.50 million (2021: $38.20 million)
- Depreciation was $3.74 million (2021: $3.84 million)
- Other Operating Expenses amounted to $55.95 million (2021: $51.24 million)
ISP reported a taxation charge of $3.50 million (2021: $2.78 million). Consequently, net profit for the period under review amounted to $24.47 million relative to a profit of $32.27 million in 2021, a 24% decrease year over year. However, net profit for the quarter decreased 20% amounting to $15.52 million (2021: $19.50 million).
As a result, EPS for the period closed at $0.23 (2021: $0.31). The EPS for the quarter was $0.15 (2021: $0.19). The 12-month trailing EPS is $0.44, and the number of shares used in our calculations is 105,000,000 units. ISP’s stock last traded on August 15, 2022 at $19.75 with a corresponding P/E of 45 times.
Balance Sheet Highlights:
As at June 30, 2022, ISP reported total assets of $810.24 million, a 2% uptick when compared to $795.45 million in the prior year. This was attributed to the increase of the company’s ‘Other Receivables’ which closed at $40.68 million (2021: $21.13 million), up 93%.
Shareholders’ Equity as at June 30, 2022 was $487.61 million compared to $441 million in 2021. This resulted in a book value per share of $4.64 compared to $4.20 the prior year.
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