25th Feb 2020 11:09
(Alliance News) - ASA International Group PLC on Tuesday said currency movements in Asia and Africa have hurt its earnings in 2019.
The stock was 2.2% lower in morning trade in London at 263.00 pence a share.
The microfinance company said its 2019 results are expects to come in slightly below expectations, amid "adverse" market conditions in India, Nigeria and Sri Lanka.
In addition, the company said its performance was hurt by "significant" currency depreciation in Pakistan and Ghana.
More positively, ASA said overall loan portfolio quality remains good, with number of clients rising by 14% in 2019 to 2.5 million from 2.2 million.
"The operational performance of the group has been strong during 2019, with continued client and loan portfolio growth in all our markets," noted Chief Executive Dirk Brouwer.
"We expect continued sustainable growth of our operations through 2020 with mid-to-high single digit USD earnings growth," added Brouwer.
However, ASA said it remains cautious in its 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.
The company will announce its 2019 results on April 21, it said.
By Evelina Grecenko; [email protected]
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