REG - ASA Intnl. Grp PLC - August 2023 Business Update

ASA InternationalAnnouncement

20/09/2023 07:00

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RNS Number : 9863M  ASA International Group PLC  20 September 2023

Press Release

 

ASA International Group plc August 2023 business update

 

Amsterdam, The Netherlands, 20 September 2023 - 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 of 31 August 2023.

·    The Group's Gross OLP increased to USD 352 million (1% higher than in
May 2023 and 5% lower than in August 2022), primarily due to increased
disbursements in India, Ghana and Kenya.

·    All operating subsidiaries except India, achieved collection
efficiency of more than 90% with 11 countries achieving more than 95%.

·    Collection efficiency in Nigeria improved from May 2023 to August
2023, following the end of demonetization and the national election cycle.

·    India collections remained stable at 85% in August 2023 compared to
May 2023. Collection efficiency, including regular and overdue collections as
well as advance payments, as a percentage of the regular, realisable
collections, including advance payments, decreased from 97% in May 2023 to 92%
in August 2023.

·    PAR>30 for the Group, including off-book loans and excluding loans
overdue more than 365 days, decreased to 3.6% in August 2023 from 4.2% in May
2023, primarily due to improving portfolio quality in Nigeria and Myanmar.

·    The PAR>30 for the Group's operating subsidiaries, excluding India
and Nigeria, decreased to 1.1% in August 2023 from 1.3% in May 2023.

·    Excluding all loans which have been overdue for more than 180 days
and, as a result, have been fully provided for, PAR>30 improved to 1.3% in
August 2023 from 2.5% in May 2023.

·    Disbursements as a percentage of collections exceeded 100% in 11
countries. The improved percentage in India was due to additional growth of
the BC portfolio following new BC partnership agreements.

Collection efficiency until 31 August 2023((1))

 Countries        Mar/23  Apr/23  May/23  Jun/23  Jul/23  Aug/23
 Pakistan         99%     99%     100%    100%    100%    100%
 India (total)    86%     88%     86%     85%     87%     85%
 Sri Lanka        95%     95%     96%     96%     96%     96%
 The Philippines  99%     99%     99%     99%     99%     99%
 Myanmar          100%    99%     100%    100%    100%    100%
 Ghana            100%    100%    100%    100%    100%    100%
 Nigeria          78%     77%     84%     87%     92%     95%
 Sierra Leone     95%     96%     96%     96%     97%     98%
 Tanzania         100%    99%     99%     99%     99%     99%
 Kenya            100%    100%    100%    100%    100%    100%
 Uganda           100%    100%    99%     99%     99%     100%
 Rwanda           96%     96%     96%     96%     97%     97%
 Zambia           98%     98%     98%     99%     99%     99%
 ((1)) Collection efficiency refers to actual collections from clients divided
 by realisable 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 realisable regular collections, actual overdue
 collections

 and actual advance payments. Under this definition collection efficiency
 cannot exceed 100%.

·    Collection efficiency remained broadly stable in most of our operating
countries compared to May 2023.

·    Adjusted collection efficiency in India, including regular and overdue
collections as well as advance payments, as a percentage of the regular,
realisable collections, including advance payments decreased from 97% in May
2023 to 92% in August 2023. The substantial difference of this adjusted
collection efficiency metric is related 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.

·    Although market conditions in both Myanmar and Sri Lanka remained
challenging, collection efficiency remained stable in both markets.

·    Collection efficiency in Nigeria improved from May 2023 to August
2023, following the end of demonetization and the national election cycle.

 

Loan portfolio quality up to and including August 2023((2, 3, 4))

                 Gross OLP (in USDm)                                           Non-overdue loans              PAR>30 less PAR>180
                Jun-23            Jul-23                 Aug-23               Jun-23   Jul-23   Aug-23       Jun-23      Jul-23      Aug-23
 Pakistan               66                   67          65                   99.5%    99.5%    99.6%        0.3%        0.3%        0.2%
 India (total)          50                   50          50                   68.7%    65.7%    74.8%        3.0%        3.0%        2.8%
 Sri Lanka                4                    4         4                    88.5%    89.2%    86.9%        3.3%        3.2%        2.8%
 Philippines            52                   52          51                   97.0%    96.3%    95.7%        1.2%        1.3%        1.3%
 Myanmar                18                   18          19                   90.7%    91.3%    91.7%        0.0%        0.0%        0.0%
 Ghana                  41                   43          45                   99.4%    99.4%    99.7%        0.1%        0.1%        0.1%
 Nigeria                17                   18          18                   77.0%    79.2%    79.4%        14.2%       11.6%       9.1%
 Sierra Leone             5                    5         5                    84.0%    84.8%    86.9%        3.7%        2.7%        2.0%
 Tanzania               57                   56          57                   99.1%    98.9%    98.9%        0.5%        0.5%        0.5%
 Kenya                  18                   19          20                   99.1%    99.1%    99.3%        0.2%        0.2%        0.2%
 Uganda                 12                   12          12                   98.7%    98.8%    98.9%        0.6%        0.7%        0.5%
 Rwanda                   4                    4         4                    91.5%    91.7%    91.5%        4.2%        4.2%        3.9%
 Zambia                   4                    3         3                    94.4%    94.1%    94.1%        1.9%        1.8%        1.5%
 Group                347                  351                   352          92.5%    92.2%    92.3%        1.7%        1.5%        1.3%

 

                 PAR>30                              PAR>90                              PAR>180
                Jun-23   Jul-23   Aug-23            Jun-23   Jul-23   Aug-23            Jun-23   Jul-23   Aug-23
 Pakistan       0.3%     0.3%     0.3%              0.2%     0.2%     0.2%              0.0%     0.1%     0.1%
 India (total)  13.8%    15.3%    13.5%             12.9%    14.2%    12.6%             10.7%    12.3%    10.7%
 Sri Lanka      6.4%     6.2%     5.6%              4.7%     4.3%     4.0%              3.1%     3.0%     2.8%
 Philippines    1.9%     2.0%     2.3%              1.4%     1.5%     1.6%              0.7%     0.8%     1.0%
 Myanmar        1.2%     0.7%     0.3%              1.2%     0.6%     0.3%              1.2%     0.6%     0.3%
 Ghana          0.2%     0.2%     0.1%              0.1%     0.1%     0.1%              0.1%     0.1%     0.1%
 Nigeria        15.5%    13.6%    15.0%             8.9%     10.1%    12.8%             1.3%     2.0%     5.8%
 Sierra Leone   11.3%    10.2%    7.9%              10.0%    9.1%     7.0%              7.6%     7.5%     5.9%
 Tanzania       0.7%     0.7%     0.8%              0.4%     0.5%     0.5%              0.2%     0.2%     0.2%
 Kenya          0.5%     0.5%     0.4%              0.5%     0.4%     0.3%              0.3%     0.3%     0.2%
 Uganda         0.9%     1.0%     0.9%              0.5%     0.6%     0.7%              0.3%     0.3%     0.3%
 Rwanda         6.8%     7.1%     7.7%              4.8%     5.1%     6.0%              2.6%     2.9%     3.8%
 Zambia         4.2%     4.3%     4.1%              3.5%     3.7%     3.5%              2.3%     2.5%     2.6%
 Group          3.7%     3.8%     3.6%              3.0%     3.2%     3.1%              2.0%     2.3%     2.2%
 ((2))  Gross OLP includes the off-book BC and DA model, and loans valued at
 fair value through the P&L ("FVTPL").

 ((3))  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 3.5% of the Gross OLP.

 ((4))  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.

·    Gross OLP in India increased to USD 50 million (10% higher than in May
2023 and 26% lower than in August 2022).

·    PAR>30 for the Group improved from 4.2% in May 2023 to 3.6% in
August 2023, primarily due to improving portfolio quality in Nigeria and
Myanmar.

·    Credit exposure of the India off-book IDFC portfolio of USD 12.1
million 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 2023((5))

 Countries        Mar/23  Apr/23  May/23  Jun/23  Jul/23  Aug/23
 Pakistan         107%    108%    115%    109%    107%    118%
 India (total)    87%     77%     61%     141%    125%    130%
 Sri Lanka        120%    46%     88%     84%     101%    94%
 The Philippines  104%    107%    98%     101%    98%     104%
 Myanmar          91%     80%     115%    103%    124%    120%
 Ghana            104%    117%    110%    126%    115%    119%
 Nigeria          58%     110%    126%    143%    109%    105%
 Sierra Leone     118%    119%    110%    95%     134%    144%
 Tanzania         106%    118%    110%    116%    104%    112%
 Kenya            109%    107%    106%    107%    120%    118%
 Uganda           101%    100%    103%    95%     98%     104%
 Rwanda           93%     100%    115%    106%    98%     93%
 Zambia           115%    132%    115%    103%    82%     101%
 ((5)) Disbursements vs collections refers to actual loan disbursements made to
 clients divided by total amounts collected from clients in the period.

·    Disbursements as a percentage of collections exceeded 100% in 11
countries. The improved percentage in India was due to additional growth of
the BC portfolio following new BC partnership agreements.

 

Development of Clients and Outstanding Loan Portfolio until 31 August 2023

                   Clients (in thousands)           Delta                         Gross OLP (in USDm)           Delta
 Countries        Aug/22     Jul/23     Aug/23     Aug/22-Aug/23  Jul/23-Aug/23  Aug/22    Jul/23    Aug/23    Aug/22-Aug/23 USD  Aug/22-Aug/23 CC ((6))  Jul/23-

Aug/23 USD
 Pakistan         590        610        616        4%             1%             77        67        65        -17%               16%                     -3%
 India (total)    383        206        229        -40%           11%            67        50        50        -26%               -23%                    0%
 Sri Lanka        45         46         45         0%             -1%            4         4         4         23%                10%                     3%
 The Philippines  321        330        331        3%             0.3%           47        52        51        9%                 10%                     -2%
 Myanmar          104        103        103        -1%            0%             17        18        19        13%                13%                     3%
 Ghana            169        187        197        16%            5%             34        43        45        33%                51%                     5%
 Nigeria          242        171        182        -25%           6%             41        18        18        -56%               -20%                    1%
 Sierra Leone     37         37         40         8%             7%             5         5         5         -7%                44%                     7%
 Tanzania         204        228        232        14%            1%             44        56        57        29%                39%                     1%
 Kenya            134        183        188        41%            3%             19        19        20        8%                 31%                     4%
 Uganda           105        107        109        3%             2%             10        12        12        13%                11%                     -1.1%
 Rwanda           20         20         20         -1%            -1%            4         4         4         -9%                4%                      -2%
 Zambia           20         23         23         16%            0%             3         3         3         0%                 26%                     -6%
 Total            2,374      2,252      2,314      -3%            3%             371       351       352       -5%                10.9%                   0.3%

( )

((6)) Constant currency ('CC') implies conversion of local currency results to
USD with the exchange rate from the beginning of the period.

·    The Group's Gross OLP slightly increased to USD 352 million (1% higher
than in May 2023 and 5% lower than in August 2022), primarily due to increased
disbursements in India, Ghana and Kenya.

Key events August and September 2023

The Pakistan government, through the Finance Act 2023, has re-introduced a 10%
super tax rate for taxpayers in all sectors with income in excess of Rs 35
crores (for both 2022 and 2023). In line with the previous Finance Act 2022,
this rate is stipulated to apply retrospectively on income earned in FY 2022.
The retrospective application of this super tax rate is currently being
contested by different petitioners in Courts in Pakistan. The matter is also
expected to be referred to the Supreme Court for adjudication.

---

 

 

Enquiries:

ASA International Group plc

Investor Relations
 

Mischa Assink
 
ir@asa-international.com (mailto:@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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