TIDMASAI
RNS Number : 9581D
ASA International Group PLC
25 February 2020
ASA International Group plc announces 2019 Year End Trading
Update
Amsterdam, 25 February 2020 - ASA International Group plc, ("ASA
International", the "Company" or the "Group"), one of the world's
largest international microfinance institutions, today releases its
trading update for the twelve-month period from 1 January 2019 to
31 December 2019.
Key highlights:
FY2019 FY2018 % Change % Change
(UNAUDITED) (UNAUDITED) (constant
currency)
Number of clients (mn) 2.5 2.2 14%
Number of branches 1,898 1,665 14%
OLP (1) (USD mn) 466.8 378.5 23% 28%
Average OLP per client (USD) 189 174 8% 12%
(1) Outstanding loan portfolio ("OLP") includes off-book
Business Correspondence ("BC") loans and excludes interest
receivable and the unamortized loan processing fee
-- Full year 2019 operating results slightly below expectations
driven by adverse market conditions in India, Nigeria and Sri Lanka
and resulting in a slightly higher PAR>30
-- Overall loan portfolio quality remains good with PAR>30 at 1.5%
-- Significant currency depreciation in Pakistan and Ghana
-- Strong underlying operating performance across all segments
with East Africa operations continuing to outperform
Dirk Brouwer, Chief Executive Officer of ASA International Group
plc, commented:
"The operational performance of the Group has been strong during
2019, with continued client and loan portfolio growth in all our
markets. We realized higher than expected growth in East Africa
which was offset by lower than expected growth in India, Nigeria
and Sri Lanka due to adverse market conditions. As a result, and
combined with significant currency depreciation in Pakistan and
Ghana, 2019 USD earnings growth is now expected to be around
5%.
We expect continued sustainable growth of our operations through
2020 with mid-to-high single digit USD earnings growth."
Regional performance:
South Asia
-- Number of clients grew to over 1.1mn, up by 11%
-- Number of branches increased to 753, up by 18%
-- Despite substantial currency depreciation in Pakistan (PKR
down 11% against USD in 2019), OLP portfolio expanded to USD
253.2mn, up by 20% (up 25% on a constant currency basis)
-- BC portfolio in India expanded to USD 49.7mn, up by 36% (up 39% on constant currency basis)
-- OLP/Client averaged USD 219 up by 9% (up 13% on a constant currency basis)
-- Due to signs that markets in North East India are
overheating, we have taken a more cautious approach to the growth
of our operations
-- Adverse political and regulatory conditions in Sri Lanka
curbed operational growth and caused a substantial increase of
PAR>30 to 10%
South East Asia
-- Number of clients grew to over 491k, up by 11%
-- Number of branches increased to 406, up by 10%
-- OLP grew to USD 84.3mn, up by 36% (up 31% on a constant currency basis)
-- OLP/Client averaged USD 173, up by 22% (up 18% on a constant currency basis)
-- Loan growth in the Philippines and Myanmar was higher than
expected in both local currency and USD terms
West Africa
-- Number of clients grew to over 459k, up by 5%
-- Number of branches increased to 423, up by 2%
-- OLP grew to USD 77.2mn, up by 8% (up 18% on a constant
currency basis). This was lower than expected due to:
o higher than expected depreciation of the Ghanaian Cedi (GHS
down 17% in 2019) and;
o difficult market conditions in Nigeria slowing the growth of
operations, due to weak economic growth and increased security
concerns
-- OLP/Client averaged USD 170, up by 3% (up 13% on a constant currency basis)
East Africa
-- Number of clients grew to over 348k, up by 44%
-- Number of branches increased to 316, up by 30%
-- OLP grew to USD 51.6mn, up by 56% (up 56% on a constant
currency basis), which was higher than expected, due to continued
expansion of operations in all countries across the region
-- OLP/Client averaged USD 149, up by 9% (9% up on constant currency basis)
-- Operations continued to grow at a high pace in Kenya, Tanzania, and Uganda
Impact of foreign exchange rates
During H2 2019, currency movements in Asia and Africa remained
fairly stable against the US dollar with some gains recorded in the
Philippines and Myanmar. However, the USD strengthened more than
expected against currencies in two of our major markets, Ghana and
Pakistan. The weakening of these currencies against the USD in 2019
is expected to dampen USD year-on-year OLP and OLP/Client growth
during H1 2020.
Outlook
We expect to continue to grow branch and client numbers across
all regions in 2020.
We remain cautious in our growth outlook given increased
competition and risk of client over-indebtedness in the North
eastern regions of India, and the weak economic conditions and
security concerns in Nigeria. This is expected to be partially
mitigated by faster growth in our East African markets.
We expect continued sustainable growth of our operations through
2020 with mid-to-high single digit USD earnings growth.
Notice of Full Year Results
The Company will announce its 2019 Full Year Results on Tuesday,
21 April 2020.
Enquiries:
ASA International Group plc
Investor Relations +31 20 846 3554 / +31 6 2030 0139
Véronique Schyns vschyns@asa-international.com
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END
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