ASA International H1 net profit surges on loan portfolio growth
ASA International H1 net profit surges on loan portfolio growth
Overview
Global microfinance lender's H1 net profit rose 70% yr/yr, driven by portfolio expansion
Gross outstanding loan portfolio expanded 12% yr/yr, mainly in Pakistan, Uganda and Kenya
Company declared 43% higher interim dividend and continued winding down India operations
Outlook
ASA International expects 2026 underlying net profit in line or slightly ahead of market consensus of $70.2m
Company expects demand for loans to remain resilient for the rest of 2026
ASA International plans to focus on productivity, efficiency and digital transformation initiatives in H2 2026
Result Drivers
PORTFOLIO EXPANSION - Growth in gross outstanding loan portfolio was mainly driven by Pakistan, Uganda and Kenya
HIGHER FUNDING AND OPERATING COSTS - Increased funding costs, especially in Pakistan, and higher personnel and office expenses contributed to a rise in total operating expenses
CURRENCY DEPRECIATION IMPACT - Currency depreciation, notably of the Ghanaian cedi, negatively affected the FX translation reserve and total comprehensive income
Company press release: ID:nRSI9359Ta
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Net Income |
| $45.6 mln |
|
H1 Pretax Profit |
| $66.6 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the consumer lending peer group is "buy."
Wall Street's median 12-month price target for ASA International Group PLC is GBp356.00, about 40.7% above its September 8 closing price of GBp253.00
The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 4 three months ago
Reuters Recommended Reads
Sept 8 - UK's Funding Circle H1 revenue up 50% on term loans growth; lifts FY outlook
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)