June 1, 2025

ISP Finance Services Limited (ISP)

Audited Financials for the Year Ended December 31, 2025

ISP Finance Services Limited (ISP) for the year ended December 31, 2025, reported a 22% decrease in Total Interest Income totalling $403.96 million compared to $519.78 million in the corresponding period last year.

Interest Expense amounted to $50.90 million (2024: $61.03 million), representing a 17% year-over-year decrease. Consequently, Net Interest Income decreased by 23% to $353.06 million compared to $458.75 million for the year ended December 31, 2024.

Gross Profit decreased by 23% to close at $341.22 million (2024: $441.62 million), while Commission Expense on loans decreased by 31% from $17.13 million in 2024 to $11.84 million in the period under review.

Allowance for Credit Losses for the year ended December 31, 2025, amounted to $111.20 million, a 38% decrease relative to $180.00 million reported in 2024 — a meaningful improvement reflecting tighter credit monitoring and portfolio management. Staff Costs increased modestly by 7% to $96.26 million (2024: $89.56 million), while Other Operating Expenses grew 11% to $112.42 million (2024: $101.26 million), partly driven by higher advertising and promotional spend, lease interest charges, and costs associated with the Annual General Meeting. Total Operating Expenses for the year ended December 31, 2025, amounted to $332.27 million, a 13% decrease relative to $380.54 million reported in 2024.

Other Operating Income contributed $11.39 million to revenues (2024: $8.19 million), driven entirely by bad debt recoveries of $12.13 million (2024: $8.74 million), partially offset by a foreign exchange loss of $737,001 (2024: $552,222).

Profit Before Taxation for the year ended December 31, 2025, amounted to $20.34 million, a 71% decrease relative to $69.27 million reported in 2024.

Taxation for the year decreased by 78% to $2.98 million (2024: $13.55 million). As such, Net Profit for the year amounted to $17.35 million, a 69% decrease from the $55.72 million reported in 2024.

Consequently, Earnings Per Share for the year ended December 31, 2025, amounted to $0.17 (2024: EPS: $0.53). The twelve-month trailing EPS was $0.17, and the number of shares used in these calculations was 105,000,000.

Notably, ISP’s stock price closed the trading period on May 29, 2025, at a price of $10.41 with a corresponding P/E ratio of 62.99x.

Balance Sheet Highlights

The Company’s total assets stood at $1.24 billion at December 31, 2025 (2024: $1.25 billion), reflecting a marginal 1% contraction in the asset base year-over-year. Loans, Net of Provisions for Credit Losses, decreased by 5% to $1.07 billion (2024: $1.13 billion), as the gross loan book grew modestly from $1.24 billion to $1.24 billion, while the Provision for Credit Losses increased from $108.27 million to $167.62 million — reflecting more conservative provisioning on aged and stage-classified exposures. Cash and Cash Equivalents improved materially by 45% to $86.46 million (2024: $59.57 million), underpinned by strong operating cash generation of $27.63 million and proceeds from the redemption of $15.00 million in investments. Property, Plant and Equipment grew 7% to $24.64 million (2024: $22.96 million), supported by capital additions of $9.29 million during the year. The Right-of-Use Asset expanded significantly to $25.27 million (2024: $1.44 million), following the renewal of the Company’s operating lease for a further five-year term.

Shareholders’ Equity increased by 3% to $657.92 million (2024: $640.57 million), representing a Book Value Per Share of $6.27 (2024: $6.10).

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