ISP reports six months net profit of $24.47 million

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.




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 affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.