24th Sep 2025 12:02
(Alliance News) - ASA International Group PLC on Wednesday reported a sharp rise in first-half profit, lifted by loan growth in key markets, and said full-year earnings are set to "significantly" exceed expectations.
The Worthing, England-based international microfinance company, providing loans to low-income entrepreneurs, predominantly women, in South Asia, South East Asia, West and East Africa, said net profit in the six months to June 30 nearly doubled to USD26.8 million from USD13.5 million a year earlier. At constant currency, net profit was up 51%. Excluding hyperinflation accounting, underlying net profit rose 27% to USD24.2 million.
Pretax profit increased 68% to USD47.8 million from USD28.3 million, while net interest income jumped 48% to USD111.3 million from USD75.1 million. The loan portfolio grew 37% to USD540.9 million, with Ghana driving the gains alongside Pakistan, Tanzania, Uganda and Myanmar.
ASA declared an interim dividend of USD0.048 per share, up 60% from USD0.030 a year before, maintaining a 20% payout ratio.
The group highlighted improvements in portfolio quality, with loans overdue more than 30 days falling to 2.0% from 2.2% a year earlier. Equity rose 41% to USD136.2 million, helped by profit growth and favourable currency effects.
Looking ahead, ASA said 2025 net profit is expected to "significantly exceed" the company-compiled consensus forecast of USD37.5 million for financial 2025, compared to USD28.5 in financial 2024.
It pointed to growing demand for loans, productivity improvements across its branch network, and the rollout of its core banking system in Ghana and Tanzania later this year.
Chief Executive Officer Rob Keijsers said: "This has naturally translated into significantly improved profitability which has meant we can continue to make capital returns to our shareholders."
Shares in ASA International rose 16% to 199.00 pence at midday on Wednesday in London.
By Eva Castanedo, Alliance News reporter
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