REG - ASA Intnl. Grp PLC - August 2022 Business Update
20/09/2022 07:00
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RNS Number : 9267Z ASA International Group PLC 20 September 2022
ASA International Group plc August 2022 business update
Amsterdam, The Netherlands, 20 September 2022 - ASA International, ('ASA
International', the 'Company' or the 'Group'), one of the world's largest
international microfinance institutions, today provides the following update
on its business operations as at 31 August 2022.
· Liquidity remains high with approximately USD 106 million of
unrestricted cash and cash equivalents across the Group.
· The pipeline of funding deals under negotiation totalled
approximately USD 197 million.
· With the exception of India, Sri Lanka, and Myanmar, all other
operating subsidiaries continued to achieve collection efficiency of more than
90% with 9 countries achieving more than 95%.
· India collections slightly improved from 83% in May to 84% in August,
despite the substantial overdue collections. Collection efficiency, including
regular and overdue collections as well as advance payments, was at 101% as a
percentage of the regular, realisable collections, including advance payments.
· PAR>30 for the Group, including off-book loans and excluding loans
overdue more than 365 days, increased from 6.0% in May to 6.5% in August,
primarily due to the end of moratoriums in India as of June.
· The PAR>30 for the Group's operating subsidiaries, excluding India
and Myanmar, remained broadly stable at 1.9% in August.
· Excluding all loans which have been overdue for more than 180 days
and, as a result, have been fully provided for, PAR>30 remained stable at
4.2% in August.
· Disbursements as percentage of collections exceeded 100% in 8
countries. The decreasing percentage in India was due to the ongoing strategic
decision to reduce disbursements while elections in Kenya, and currency
redenomination in Sierra Leone led to the country operations curtailing
disbursements as a precaution.
· With the number of clients broadly stable at 2.4 million, the
continuing strategic focus in India on primarily collections, and the impact
of currency depreciation in major markets, the Gross OLP decreased to USD 370
million (10% lower than in May 2022 and 16% lower than in August 2021).
· The moratorium amount decreased from USD 18 million in May to USD
0.02 million in August. Whereas moratoriums in May and June were composed of
the restructured loans of certain distressed clients in India as per the RBI
guidelines, moratoriums in July were provided only to clients in Sri Lanka and
those in August were only to clients in Sierra Leone.
Funding
· Unrestricted cash and cash equivalents remained high at approximately
USD 106 million.
· The Company secured approximately USD 40 million of new loans from
local and international lenders between June and August 2022.
· The majority of the Company's USD 197 million pipeline of future
wholesale loans are supported by agreed term sheets and/or draft loan
documentation. The terms and conditions of the remaining loans are being
negotiated with lenders.
Collection efficiency until 31 August 2022((1))
Countries Mar/22 Apr/22 May/22 Jun/22 Jul/22 Aug/22
India 81% 83% 83% 85% 86% 84%
Pakistan 100% 100% 100% 100% 100% 99%
Sri Lanka 94% 93% 92% 89% 89% 88%
The Philippines 99% 99% 99% 100% 100% 100%
Myanmar 72%((2)) 72%((2)) 73%((2)) 78%((2)) 80%((2)) 84%((2))
Ghana 100% 100% 100% 100% 100% 100%
Nigeria 96% 95% 95% 96% 96% 96%
Sierra Leone 94% 94% 96% 96% 96% 94%
Tanzania 100% 100% 100% 100% 100% 100%
Kenya 100% 100% 100% 100% 100% 100%
Uganda 100% 100% 100% 100% 100% 100%
Rwanda 97% 97% 97% 97% 97% 97%
Zambia 98% 98% 98% 98% 98% 98%
((1)) Collection efficiency refers to actual collections from clients divided
by realizable collections for the period. It is calculated as follows: the sum
of actual regular collections, actual overdue collections and actual advance
payments divided by the sum of realizable regular collections, actual overdue
collections
and actual advance payments. Under this definition collection efficiency
cannot exceed 100%.
((2)) Collections are impacted by the ongoing lockdowns and civil unrest in
some areas of our operations.
· Collection efficiency across the Group increased or remained broadly
stable compared to the previous month in all countries.
· Collections in India slightly improved since May to 84% in August,
despite the substantial overdue collections.
· Collection efficiency in India, including regular and overdue
collections as well as advance payments, was at 101% as a percentage of the
regular, realisable collections, including advance payments. The substantial
difference is due to the Group's policy that any loan instalment paid is first
credited against the oldest outstanding amount overdue. This has an adverse
impact on India's monthly collection efficiency, which is further aggravated
by the relatively long duration of the loans disbursed in India. This adjusted
collection efficiency metric illustrates that most clients in India continue
to make payments on their loans due.
Loan portfolio quality up to and including August 2022((3, 4, 5))
Gross OLP (in USDm) Non-overdue loans PAR>30 less PAR>180
Jun/22 Jul/22 Aug/22 Jun/22 Jul/22 Aug/22 Jun/22 Jul/22 Aug/22
India (total) 80 73 66 75.1% 65.9% 62.5% 8.1% 13.8% 16.1%
Pakistan 80 71 77 99.7% 99.7% 98.6% 0.1% 0.2% 0.2%
Sri Lanka 4 4 4 77.5% 74.2% 76.8% 6.0% 9.0% 8.9%
Philippines 47 47 47 97.1% 96.9% 97.1% 1.0% 0.7% 0.5%
Myanmar 20 19 17 62.5% 68.0% 68.6% 31.2% 21.1% 12.5%
Ghana 43 40 34 99.6% 99.6% 99.5% 0.2% 0.1% 0.1%
Nigeria 41 41 41 92.0% 91.3% 91.0% 3.7% 3.8% 3.6%
Sierra Leone 6 6 5 88.6% 87.1% 84.4% 4.6% 4.2% 4.3%
Tanzania 42 43 44 99.5% 99.5% 99.4% 0.2% 0.2% 0.2%
Kenya 19 20 19 99.0% 99.0% 98.9% 0.4% 0.4% 0.4%
Uganda 10 10 10 98.4% 98.6% 98.6% 0.1% 0.2% 0.2%
Rwanda 4 4 4 78.2% 93.8% 94.1% 2.8% 2.8% 2.5%
Zambia 3 3 3 95.8% 95.8% 95.2% 2.6% 2.7% 2.6%
Group 399 379 370 91.1% 89.7% 89.5% 3.9% 4.5% 4.2%
PAR>30 PAR>90 PAR>180
Jun/22 Jul/22 Aug/22 Jun/22 Jul/22 Aug/22 Jun/22 Jul/22 Aug/22
India (total) 13.3% 18.5% 20.5% 6.9% 8.7% 6.0% 5.1% 4.7% 4.4%
Pakistan 0.2% 0.2% 0.2% 0.1% 0.1% 0.1% 0.0% 0.0% 0.0%
Sri Lanka 8.8% 12.0% 12.1% 5.3% 6.1% 6.3% 2.7% 3.0% 3.2%
Philippines 2.7% 2.6% 2.2% 2.5% 2.4% 2.1% 1.7% 1.8% 1.7%
Myanmar 31.5% 31.5% 30.8% 26.9% 28.9% 29.4% 0.4% 10.4% 18.3%
Ghana 0.3% 0.3% 0.3% 0.2% 0.2% 0.2% 0.1% 0.2% 0.2%
Nigeria 6.0% 6.2% 6.3% 4.3% 4.6% 4.7% 2.3% 2.5% 2.7%
Sierra Leone 10.1% 10.9% 9.9% 8.8% 9.5% 7.8% 5.5% 6.6% 5.6%
Tanzania 0.4% 0.4% 0.4% 0.3% 0.2% 0.2% 0.2% 0.1% 0.1%
Kenya 0.8% 0.8% 0.9% 0.7% 0.7% 0.7% 0.5% 0.5% 0.5%
Uganda 1.5% 1.2% 0.8% 1.4% 1.1% 0.7% 1.4% 1.0% 0.6%
Rwanda 4.6% 4.7% 4.6% 3.3% 3.3% 3.3% 1.8% 1.9% 2.0%
Zambia 2.9% 3.2% 3.4% 1.4% 2.1% 2.4% 0.3% 0.5% 0.8%
Group 5.6% 6.7% 6.5% 3.8% 4.3% 3.5% 1.7% 2.2% 2.3%
( )
((3)) Gross OLP includes the off-book BC and DA model, excluding interest
receivable and before deducting ECL provisions and modification loss.
((4)) PAR>x is the percentage of outstanding customer loans with at least
one instalment payment overdue x days, excluding loans more than 365 days
overdue, to Gross OLP including off-book loans. Loans overdue more than 365
days now comprise 2% of the Gross OLP.
((5)) The table "PAR>30 less PAR>180" shows the percentage of
outstanding client loans with a PAR greater than 30 days, less those loans
which have been fully provided for.
· PAR>30 for the Group increased from 6.0% in May to 6.5% in August
as portfolio quality in India decreased due to the end of moratoriums in June,
while currency devaluations substantially reduced the size of OLP from
countries with high portfolio quality such as Ghana and Pakistan.
· Credit exposure of the India off-book BC portfolio of USD 25.8m is
capped at 5%. The included off-book DA portfolio of USD 1.1 million has no
credit exposure.
Disbursements vs collections of loans until 31 August 2022((6))
Countries Mar/22 Apr/22 May/22 Jun/22 Jul/22 Aug/22
India 62% 52% 72% 42% 22% 25%
Pakistan 100% 117% 118% 119% 113% 112%
Sri Lanka 122% 55% 42% 61% 11% 93%
The Philippines 104% 112% 105% 104% 104% 104%
Myanmar 116% 77% 106% 85% 84% 95%
Ghana 115% 118% 112% 110% 91% 100%
Nigeria 98% 110% 120% 117% 100% 104%
Sierra Leone 113% 105% 93% 99% 84% 81%
Tanzania 110% 130% 120% 109% 106% 111%
Kenya 113% 125% 112% 92% 105% 87%
Uganda 118% 122% 112% 97% 97% 100%
Rwanda 107% 112% 129% 119% 113% 116%
Zambia 109% 116% 125% 133% 109% 110%
((6)) Disbursements vs collections refers to actual loan disbursements made to
clients divided by total amounts collected from clients in the period.
· Disbursements as percentage of collections exceeded 100% in 8
countries. The decreasing percentage in India was due to the ongoing strategic
decision to reduce disbursements while elections in Kenya, and currency
redenomination in Sierra Leone led to the country operations curtailing
disbursements as a precaution.
Development of Clients and Outstanding Loan Portfolio until 31 August 2022
Clients (in thousands) Delta Gross OLP (in USDm) Delta
Countries Aug/21 Jul/22 Aug/22 Aug/21-Aug/22 July/22-Aug/22 Aug/21 Jul/22 Aug/22 Aug/21-Aug/22 USD Aug/21-Aug/22 CC((7)) July/22-Aug/22 USD
India 675 435 417 -38% -4% 139 73 66 -53% -49% -10%
Pakistan 486 583 590 21% 1% 74 71 77 4% 38% 10%
Sri Lanka 53 46 45 -15% -2% 8 4 4 -56% -21% -2%
The Philippines 341 317 321 -6% 1% 55 47 47 -14% -2% 0%
Myanmar 118 103 104 -12% 1% 23 19 17 -26% -5% -12%
Ghana 151 168 170 13% 1% 44 40 34 -23% 27% -15%
Nigeria 259 240 242 -7% 1% 34 41 41 21% 24% -1%
Sierra Leone 42 38 37 -12% -4% 7 6 5 -22% 7% -11%
Tanzania 155 202 204 31% 1% 28 43 44 57% 58% 3%
Kenya 118 136 134 14% -1% 18 20 19 4% 14% -5%
Uganda 83 105 105 27% 0% 8 10 10 26% 36% 2%
Rwanda 17 19 20 15% 3% 3 4 4 40% 45% 3%
Zambia 11 19 20 85% 5% 1 3 3 126% 126% 6%
Total 2,509 2,411 2,409 -4% -0.1% 441 379 370 -16% 0% -2.3%
( )
((7)) Constant currency ('CC') implies conversion of local currency results to
USD with the exchange rate from the beginning of the period.
· With the number of clients broadly stable at 2.4 million, the
continuing strategic focus in India on primarily collections, and the impact
of currency depreciation in major markets, the Gross OLP decreased to USD 370
million (10% lower than in May 2022 and 16% lower than in August 2021).
Selected moratoriums((8)) on loan repayments until 31 August 2022
Clients under moratorium (in thousands)
Countries Jun/22 Jul/22 Aug/22 As % of Total Clients
India 95 0 0 0%
Sri Lanka 0 0.6 0 0%
Sierra Leone 0 0 1.2 3%
Group 95 0.6 1.2 0.1%
Moratorium amounts (USD thousands)
Countries Jun/22 Jul/22 Aug/22 August Moratoriums as % of OLP As % of Total Moratoriums
India 16,044 0 0 0% 0%
Sri Lanka 0 3 0 0% 0%
Sierra Leone 0 0 0.02 0.0% 100%
Group 16,044 3 0.02 0% 100%
((8)) Moratoriums relate to clients who have received an extension for the
payment of one or more loan instalments during the month.
· Moratoriums on loan repayments relate to approximately 3% of clients
in Sierra Leone in August. The moratoriums in May and June are composed of the
restructured loans of clients in India who accepted to benefit from the
one-time debt restructuring scheme established by the RBI and confirmed in
September 2021, which ended in June 2022. See RBI Covid-19 Restructuring
Guidelines
(https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12086&Mode=0) .
Moratoriums in July were provided to clients in Sri Lanka while those in
August were only to clients in Sierra Leone.
· The moratorium amount across the Group decreased to USD 0.02 million,
which represents 0.004% of the Group's Gross OLP.
Key events in September 2022
· Other than the existing partial curfews in Myanmar, the Company is
not aware of any further restrictions implemented in its operating countries
up until 19 September 2022.
· Record flooding occurred in Pakistan submerging large parts of the
country and displacing millions of people. The Punjab region where ASA
Pakistan has most of its operations, was not badly affected, while the Sind
region saw significant flooding which affected some of ASA Pakistan's clients
and operations. The local team has halted operations in areas that were badly
affected, while maintaining contact with clients to provide assistance until
clients can recover and return to their regular livelihoods.
Enquiries:
ASA International Group plc
Investor
Relations
+31 6 2030 0139
Véronique
Schyns
vschyns@asa-international.com
(mailto:vschyns@asa-international.com)
About ASA International Group plc
ASA International Group plc (ASAI: LN) is one of the world's largest
international microfinance institutions, with a strong commitment to financial
inclusion and socioeconomic progress. The company provides small, socially
responsible loans to low-income, financially underserved entrepreneurs,
predominantly women, across South Asia, South East Asia, West and East Africa.
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