Sustained growth, enhanced profitability and strengthened balance sheet
Highlights
· Strong loan portfolio growth - Gross Outstanding Loan Portfolio rose 37% YoY to
· Profitability surge - Reported net profit almost doubled to
· Resilient portfolio quality - Group PAR>30 improved to 2.0% (H1 2024: 2.2%), with
· Strengthened equity base - Total equity up 41% to
· Stable funding position - Total funding rose to
· Continued capital returns - Interim dividend declared of
"
"An important milestone during the first half of the year was the launch of an innovative and groundbreaking partnership to offer microinsurance to our clients across
"Continuing the work undertaken throughout 2024, a core strategic focus for the Board has been on continuing to strengthen our leadership team. Both the Executive Committee at the Group-level and local leadership in
"We have also taken the important step of formally joining the Client Protection Pathway (CPP Pathway), a global initiative that helps financial institutions like ours demonstrate and continuously improve how we protect clients. This builds on what we already do every day and reinforces that client protection is at the heart of the ASA Model.
"Looking forward to the remainder of 2025, we expect to see the existing trend of growing demand for loans continue. We will also see ever greater productivity across the organisation as we drive efficiency in the branch network and therefore reduce our cost-income ratio. The next stage of our digital transformation effort is imminent as we roll-out the core banking system and digital platform to
Key performance indicators
|
(Unaudited - USDm unless otherwise stated) |
H1 2025 |
H1 2024 |
Change (CC) |
Change |
|
Net profit(1) |
26.8 |
13.5 |
51% |
99% |
|
Underlying net profit(2) |
24.2 |
14.0 |
27% |
73% |
|
PAR>30 days(3) |
2.0% |
2.2% |
- |
(0.2ppt) |
|
|
|
|
|
|
|
Number of clients (m) |
2.6 |
2.4 |
- |
9% |
|
Number of branches |
2,232 |
2,091 |
- |
7% |
|
Profit before tax(1) |
47.8 |
28.3 |
37% |
68% |
|
OLP(4) |
527.4 |
384.6 |
25% |
37% |
|
Gross OLP(4) |
540.9 |
394.9 |
25% |
37% |
|
|
|
|
|
|
Outlook
Building on the sustained momentum seen during H1, the outlook for the remainder of 2025 remains positive with improved business and financial performance expected with continued robust demand expected. Accordingly, the expectation is that both underlying and reported net profit for 2025 is to significantly exceed the current company compiled consensus for FY 2025 of
Webcast
Management will be hosting a webcast and conference call, with Q&A, today at 14:00 (
To access the webcast and download the results presentation, please go to the Investor section of the website: Investors | Asa (asa-international.com) or use the following link:
The audio webcast will be available for playback on the Investors section of the website after the event.
2025 Interim Financial Report
Today,
Preliminary financial calendar
Dividend record date
Q3 2025 Business Update
Dividend payment date 31 October 2025
Q4 2025 Business Update
Enquiries
Investor Relations
ir@asa-international.com
CHIEF EXECUTIVE OFFICER'S H1 2025 REVIEW
Introduction
From an operational footprint standpoint and in line with our strategy, the number of branches increased to 2,232 as at
Gross OLP grew to
Regional footprint
·
·
·
·
Leadership
Continuing the work undertaken throughout 2024, a core strategic focus for the Board has been on continuing to strengthen our leadership team. In
Digital strategy and transformation
The digital strategy is focused on the implementation of a Core Banking System and a digital financial services platform that meet the requirements for running a modern micro banking institution. Alongside the digitalisation of the client journey, the intention is to also further enhance business administration processes which will drive efficiency and productivity gains.
The next stage of the digital transformation programme involves the roll-out of the Temenos Core Banking System and digital financial services app in
Competitive environment
The competitive landscape remains broadly unchanged with the strongest competition being faced in
Sustainability
In the first half of 2025, we advanced our sustainability agenda by installing 71 solar systems, purchasing 28 electric motorbikes, planting 10,000 trees, training more than 60,000 stakeholders in environmental awareness, and removing over 100 kilos of plastic from the streets. Over the same period, 80,000 community members benefitted from initiatives in health, education, environment, and disaster relief, including health camps, hospital and maternal support, water tank donations, scholarships, and waste management campaigns. Client protection remains a cornerstone of our operating model, with policies and practices already aligned to the principles promoted by Cerise+SPTF and to further reinforce this commitment, we have now joined the Client Protection Pathway.
Interim dividend
In line with our commitment to make capital returns to shareholders, an interim dividend of
Climate Week NYC
Looking ahead
I would like to pay tribute to my colleagues who have been instrumental in delivering
Looking forward to the rest of 2025, we expect to see growing demand for loans and ever greater productivity across the organisation as we drive efficiency in the branch network and therefore reduce our cost-income ratio. From a digital transformation standpoint, we will build on the successes of 2024 by continuing the roll-out of the core banking system and digital platform to
CHIEF FINANCIAL OFFICER'S H1 2025 REVIEW
"
"Robust profitability and enhanced equity levels were achieved in the first half which aligned with the focus on growing our asset base in a sustainable manner.
"During H1 2025, the local currencies remained stable in most of the countries with the major exception being the significant appreciation of the
"We also witnessed a strong growth in total equity at the end of H1 2025 even after the payment of the final dividend. This is mainly driven by the profit growth and positive translation impact from operating currency devaluation.
"From an efficiency standpoint, we also improved the cost to income ratio in H1 2025 mainly through higher income generation which outpaced the growth in operating costs. We are delighted by the momentum of the business and are extremely confident in the outlook for continued growth for the remainder of 2025."
Summary income statement
|
|
H1 2025 |
H1 2024 |
YoY Change |
|
Interest and similar income |
136.1 |
95.2 |
43% |
|
Interest and similar expense |
(24.8) |
(20.1) |
23% |
|
Net interest income |
111.3 |
75.1 |
48% |
|
|
|
|
|
|
Other operating income |
6.7 |
9.7 |
-31% |
|
Credit loss expense |
(3.2) |
(2.4) |
33% |
|
Net operating income |
114.8 |
82.4 |
39% |
|
|
|
|
|
|
Personnel expenses |
(38.3) |
(30.3) |
26% |
|
Other operating expenses(5) |
(26.5) |
(20.5) |
29% |
|
Total operating expenses |
(64.8) |
(50.8) |
27% |
|
|
|
|
|
|
Exchange rate result |
(0.5) |
(0.6) |
-16% |
|
Gain/(loss) on the net monetary position |
(1.8) |
(2.6) |
-32% |
|
Profit before tax |
47.8 |
28.3 |
68% |
|
Net profit |
26.8 |
13.5 |
99% |
|
|
|
|
|
|
Cost-income ratio |
56.4% |
61.7% |
|
|
Net interest margin |
39.6% |
32.3% |
|
|
Return on average equity |
46.1% |
34.2% |
|
Net interest income
Net interest income increased by 48% to
Net operating income
Net operating income grew by 39% to
Total operating expenses
Total operating expenses increased by 27% from
Gain/loss on the net monetary position
The loss on the net monetary position, reflecting the impact of the application of hyperinflation accounting for
Profitability
Profit before tax increased by 68% to
Effective tax rate (ETR)
There was a favourable tax position in certain jurisdictions in H1 2025 compared to H1 2024. This, to some extent, contributed to the reduction in the effective tax rate (excluding withholding taxes) to 38.7% in H1 2025 from 45.1% in H1 2024. Including withholding taxes, the effective tax rate decreased to 43.9% in H1 2025 from 52.4% in H1 2024. This reduction is mainly due to a favourable movement in the profit mix, with higher profit being generated in countries having a lower ETR such as,
Summary balance sheet
|
|
|
|
YTD Change |
|
Cash and cash equivalents |
111.0 |
108.4 |
2% |
|
Loans to customers |
496.1 |
410.0 |
21% |
|
Other assets |
65.1 |
50.1 |
30% |
|
Total assets |
672.2 |
568.5 |
18% |
|
|
|
|
|
|
Client deposits |
119.6 |
90.1 |
33% |
|
Interest-bearing debt |
341.5 |
312.7 |
9% |
|
Other liabilities(6) |
75.0 |
69.2 |
8% |
|
Total liabilities |
536.1 |
472.0 |
14% |
|
|
|
|
|
|
Share capital and reserves |
138.5 |
98.5 |
41% |
|
Non-controlling interest |
(2.3) |
(2.0) |
16% |
|
Total equity |
136.2 |
96.5 |
41% |
|
|
|
|
|
|
Off-book Business Correspondence ('BC') and Direct Assignment Gross loan portfolio |
29.7 |
38.0 |
-22% |
|
|
|
|
|
|
Gross OLP |
540.9 |
458.6 |
18% |
|
Less ECL reserves on loans and advances plus FV adjustments on loans under FVTPL |
(13.5) |
(12.0) |
12% |
|
OLP |
527.4 |
446.6 |
18% |
|
|
|
|
|
|
PAR>30 days |
2.0% |
2.2% |
|
Loans to customers
Loans to customers, a significant asset item on the balance sheet, increased by 21% from
Total assets
Total assets increased by 18% to
Client deposits
Client deposits (excluding interest payables) levels improved by 33% to
Interest bearing debt
Third-party interest-bearing debt (excluding interest payables) increased by 9% as at
Total equity
The equity position strengthened by 41% to
Equity movements
|
|
|
|
|
Balance at the beginning of period |
96.5 |
76.6 |
|
Impact of reclassification at FVTPL |
- |
- |
|
Net profit for the period |
26.8 |
28.5 |
|
Change in FX translation reserve |
15.5 |
(4.3) |
|
Movement in hedge accounting reserve |
1.6 |
(2.2) |
|
Dividend |
(4.0) |
(3.0) |
|
Others |
(0.2) |
0.8 |
|
Balance at the end of period |
136.2 |
96.5 |
Impact of foreign exchange rates
As a company with a reporting currency in US Dollars with operations in thirteen different currencies, there may be currency movements that can have a major impact on the consolidated USD financial performance and reporting.
The effect of this can be generally categorized in the equity section in two ways: (i) existing and future local currency earnings translate into fewer US Dollar earnings, and (ii) local currency capital of any of the operating subsidiaries will translate into a lower US Dollar capital.
|
Countries |
|
|
|
Δ YoY |
|
|
284.2 |
278.3 |
|
(2%) |
|
|
85.7 |
83.4 |
|
(3%) |
|
|
299.9 |
306.0 |
|
2% |
|
|
56.4 |
58.4 |
|
3% |
|
|
2,098.9 |
2,488.7 |
|
16% |
|
|
10.3 |
15.3 |
|
32% |
|
|
1,538.8 |
1,535.4 |
|
(0%) |
|
|
22.7 |
22.5 |
|
(1%) |
|
|
2,634.7 |
2,631.3 |
|
(0%) |
|
|
129.3 |
129.3 |
|
0% |
|
|
3,594.7 |
3,710.0 |
|
3% |
|
|
1,439.0 |
1,315.7 |
|
(9%) |
|
|
23.8 |
24.0 |
|
1% |
The Ghanaian cedi (GHS) appreciated by 32% YoY, which positively impacted the USD earnings of the Group's subsidiaries and contributed to an improvement in the foreign currency translation reserve. The total contribution to the foreign currency translation reserve in H1 2025 amounted to
Total comprehensive income
|
(USDm) |
H1 2025 |
H1 2024 |
|
Profit for the period |
26.8 |
13.5 |
|
|
|
|
|
Change in FX translation reserve |
15.5 |
(8.7) |
|
Movement in hedge accounting reserve |
1.6 |
(1.2) |
|
Tax on OCI and other items |
(0.5) |
0.4 |
|
Actuarial gain on defined benefit liabilities and gain on MFX investment |
0.03 |
0.03 |
|
Other comprehensive income/(loss) |
16.7 |
(9.4) |
|
|
|
|
|
Total comprehensive income/(loss) for the period, net of tax |
43.5 |
4.1 |
The Group intends to minimize the impact of FX fluctuations by continuing with frequent dividend declarations by its operating entities and to explore potential equity hedging strategies. Hedging of operating entity equity has historically been hugely expensive and not deemed to offer the required cost-benefit dynamic. Furthermore, a strong focus on enhancing operational productivity will support improved financial performance and resilience against foreign currency volatilities.
Funding
Total funding increased to
|
(USDm)
|
|
|
|
Local Deposits |
119.6 |
90.1 |
|
Loans from Financial Institutions |
294.3 |
259.8 |
|
Microfinance Loan Funds |
9.8 |
11.0 |
|
Loans from Dev. Banks and Foundations |
37.5 |
41.9 |
|
Equity |
136.2 |
96.5 |
|
Total Funding |
597.3 |
499.3 |
A favourable maturity profile has been maintained with the average tenor of all funding from third parties being substantially longer than the average tenor at issuance of customer loans which ranges from six to twelve months for the majority of the loans. Local deposits have increased YoY in USD terms. This increase was primarily due to significant increase in security deposits mainly in
Lenders demonstrated their confidence in the Group and continued to provide funding as the Group was able to raise
The Group has
Net debt at the holding company level increased slightly to
As of
The H1 2025 condensed consolidated financial statements have been prepared on a going concern basis. It should be noted that in the 2024 Annual Report and Accounts, approved on
Expected credit losses
The Group increased its reserves in the balance sheet for expected credit losses (ECL) from
Furthermore, the
Hyperinflation accounting
The IFRS standard IAS 29 "Financial Reporting in Hyperinflationary Economies" ('IAS 29') requires the Group to adjust the H1 2025 financial information of operating entities, which are hyperinflationary economies with the main indicator being three-year cumulative inflation exceeding 100% in the period 2023-2025. All items are presented to reflect the current purchasing power at the reporting date.
Based on this, hyperinflation accounting is applied in the interim financial statements of the Group in relation to
Based on the latest
Regulatory capital
Currently, twelve out of thirteen operating subsidiaries are subject to minimum regulatory capital requirements. As of
REGIONAL PERFORMANCE
Regional snapshot
|
H1 2025 (in USDm) |
|
|
|
|
|
Net interest income |
20.0 |
17.5 |
38.7 |
37.0 |
|
|
|
|
|
|
|
Credit loss expense |
(0.3) |
(1.6) |
(0.1) |
(1.1) |
|
Net operating income |
21.2 |
17.0 |
38.7 |
34.4 |
|
|
|
|
|
|
|
Total operating expenses* |
(14.0) |
(13.6) |
(12.7) |
(20.2) |
|
|
|
|
|
|
|
Profit before tax |
7.2 |
3.4 |
26.0 |
14.2 |
|
Net profit |
3.3 |
2.7 |
17.2 |
9.1 |
|
H1 2024 (in USDm) |
|
|
|
|
|
Net interest income |
16.1 |
15.0 |
20.5 |
26.2 |
|
|
|
|
|
|
|
Credit loss expense |
(0.8) |
(0.8) |
(0.3) |
(0.5) |
|
Net operating income |
16.8 |
15.6 |
20.2 |
25.1 |
|
|
|
|
|
|
|
Total operating expenses* |
(11.8) |
(12.4) |
(10.0) |
(14.3) |
|
|
|
|
|
|
|
Profit before tax |
5.0 |
3.2 |
10.2 |
10.8 |
|
Net profit |
1.4 |
2.3 |
6.2 |
6.6 |
*Including gain/loss on net monetary position and exchange rate differences
Regional and country OLP and portfolio quality
|
|
OLP (in USDm) |
|
PAR>30 days |
||
|
|
|
|
|
|
|
|
|
93.5 |
89.0 |
|
0.5% |
0.5% |
|
|
27.2 |
36.5 |
|
5.9% |
5.4% |
|
|
5.5 |
5.0 |
|
4.5% |
4.9% |
|
|
126.2 |
130.5 |
|
1.6% |
2.1% |
|
|
|
|
|
|
|
|
|
61.7 |
58.4 |
|
6.3% |
6.8% |
|
|
29.9 |
25.5 |
|
0.2% |
0.3% |
|
|
91.6 |
83.9 |
|
4.3% |
4.8% |
|
|
|
|
|
|
|
|
|
129.4 |
67.5 |
|
0.2% |
0.2% |
|
|
14.3 |
11.0 |
|
2.7% |
4.9% |
|
|
6.8 |
6.3 |
|
9.5% |
9.4% |
|
|
150.4 |
84.8 |
|
0.9% |
1.5% |
|
|
|
|
|
|
|
|
|
84.6 |
84.4 |
|
1.6% |
1.3% |
|
|
39.6 |
36.3 |
|
0.3% |
0.3% |
|
|
24.7 |
18.6 |
|
0.2% |
0.2% |
|
|
6.0 |
4.9 |
|
4.9% |
5.1% |
|
|
4.2 |
3.1 |
|
3.2% |
3.4% |
|
|
159.1 |
147.3 |
|
1.3% |
1.1% |
|
|
|
|
|
|
|
|
Group |
527.4 |
446.6 |
|
2.0% |
2.2% |
Net interest income
Net interest income increased by 24% reaching
Net operating income
Net operating income also improved by 26% to
Total operating expenses
Total operating expenses grown by 19% to
Profitability
Profit before tax grew by 44% to
ASA
· Number of clients increased from 618k to 673k (up 9% YoY)
·
· As a result, OLP increased as result from
· Gross OLP/Client also increased from
· PAR>30 remained at 0.5% compared to
ASA
· Number of clients decreased from 193k to 129k (down 33% YoY) due to increase in new 'off book' loan disbursements
· Number of branches reduced from 176 to 157 (down 11% YoY)
· On-book portfolio decreased from
· Off-book portfolio decreased from
· Gross OLP/Client increased from
· PAR>30 (including off-book) deteriorated from 5.4% as at
The Board continues to work towards a full deconsolidation of ASA India from the Group by the end of
· Number of clients increased from 42k to 45k (up 6% YoY)
· Number of branches reduced by 1 to 63, due to the merger of two branches to improve efficiency and cost management
· OLP increased from
· Gross OLP/Client increased from
· PAR>30 improved from 4.9% to 4.5% as collection efficiency is improved compared to year-end 2024
Net interest income
Net interest income increased by 17% reaching
Net operating income
Net operating income improved by 9% to
Total operating expenses
Total operating expenses increased by 10% to
Profitability
Profit before tax increased by 5% from
Pagasa Philippines' operations grew in the period, despite challenges created in the country by typhoons:
· Number of clients remained stable at 352k
· Number of branches increased from 400 to 433 (up 8% YoY)
· OLP increased from
· Gross OLP/Client increased from
· PAR>30 improved compared to
ASA
· Number of clients increased from 118k to 128k (up 8% YoY)
· Number of branches increased from 89 to 91 (up 2% YoY)
· OLP increased from
· Gross OLP per client increased from
· PAR>30 slightly improved compared to
Net interest income
Net interest income increased by 89%, totalling
Net operating income
Net operating income improved by 92% to
Total operating expenses
The total operating expenses slightly increased by 27%, standing at
Profitability
ASA Savings & Loans operations overcame the economic challenges within the country and demonstrated tremendous performance with excellent portfolio quality and appreciating currency:
· Number of clients increased from 192k to 237k (up 23% YoY)
· Number of branches increased from 150 to 153 (up 2% YoY)
· OLP increased from
· Gross OLP/Client increased from
· PAR>30 remained stable at 0.2% compared to
ASA
· Number of clients increased from 146k to 158k (up 8% YoY)
· Number of branches increased from 263 to 269 (up 2% YoY)
· OLP increased from
· Gross OLP/Client increased from
· PAR>30 significantly improved from 4.9% as at
ASA
· Number of clients increased from 37k to 43k (up 15% YoY)
· Number of branches increased from 48 to 49 (up 2% YoY) supporting the increase in client reach
· OLP increased from
· Gross OLP/Client increased from
· PAR>30 slightly increased compared to
Net interest income
Net interest income saw a significant improvement of 41%, reaching
Net operating income
Net operating income increased by 37% to
Total operating expenses
Total operating expenses increased by 41% during H1 2025 to
Profitability
Profit before tax improved from
ASA
· Number of clients increased from 258k to 300k (up 17% YoY) as the more favourable loan terms are attracting an increased number of clients
· Number of branches increased from 211 to 241 (up 14% YoY) supporting the increased client reach
· OLP slightly increased from
· Gross OLP/Client decreased from
· PAR>30 increased slightly to 1.6% from 1.3% (
ASA
· Number of clients increased from 237k to 279k (up 18% YoY)
· Number of branches increased from 145 to 160 (up 10% YoY) in order to respond to increased client demands
· As a result, OLP increased from
· Gross OLP/Client increased from
· PAR>30 remained stable at 0.3% compared to
ASA
· Number of clients increased from 131k to 179k (up 36% YoY)
· Number of branches increased from 125 to 133 (up 6% YoY)
· OLP increased from
· Gross OLP/Client increased from
· PAR>30 remained stable at 0.2% compared to
ASA
· Number of clients increased from 21k to 24k (up 16% YoY)
· Number of branches remained at 37
· OLP increased from
· Gross OLP/Client increased from
· PAR>30 improved to 4.9% from 5.1% as at
ASA
· Number of clients increased from 27k to 30k (up 13% YoY)
· Number of branches increased from 38 to 41 (up 8% YoY)
· OLP increased from
· Gross OLP/Client increased from
· PAR>30 improved to 3.2% from 3.4% as at
Forward-looking statement and disclaimers
This announcement does not constitute or form part of any offer or invitation to purchase, otherwise acquire, issue, subscribe for, sell or otherwise dispose of any securities, nor any solicitation of any offer to purchase, otherwise acquire, issue, subscribe for, sell, or otherwise dispose of any securities. The release, publication or distribution of this announcement in certain jurisdictions may be restricted by law and therefore, persons in such jurisdictions into which this announcement is released, published or distributed should inform themselves about and observe such restriction.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated by the Market Abuse Regulation (EU) No.596/2014, as it forms part of
The person responsible for the release of this announcement on behalf of the Company for the purposes of MAR is
Notes
(1) Profit before tax and net profit for H1 2025 include an IAS 29 hyperinflation positive impact of
(2) Underlying net profit excludes the IAS 29 hyperinflation positive impact of
(3) PAR refers to 'Portfolio at Risk'. PAR>30 is the percentage of outstanding customer loans with at least one instalment payment overdue 30 days, excluding loans more than 365 days overdue, to Gross OLP including off-book loans
(4) Outstanding loan portfolio ('OLP') includes off-book Business Correspondence ('BC') loans and Direct Assignment loans, and loans valued at fair value through profit and loss ('FVTPL'), excludes interest receivable, unamortized loan processing fees, and deducts ECL reserves from Gross OLP
(5) Other operating expenses include depreciation and amortisation charges
(6) Other liabilities include the following liabilities: retirement benefit, current tax, deferred tax, lease and derivative liabilities, any other liabilities, provisions and interest payables
(7) '
(8) 'Holdings', 'Holding companies' or 'Holding entities' all refer to
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the