9th Sep 2026 14:25
(Alliance News) - ASA International Group PLC on Wednesday reported a sharp rise in first-half profit and said it expects 2026 in line with or slightly ahead of market expectations.
The Worthing, England-based international microfinance company, said net profit for the first half ended June 30 increased by 70% to USD45.6 million from USD26.8 million a year ago. The result builds on last year's half-year performance, when net profit nearly doubled to USD26.8 million from USD13.5 million a year earlier.
Net underlying profit increased 42% to USD34.3 million from USD24.2 million, excluding what the company described as "favourable" India-related one-off payments.
Pretax profit rose 39% to USD66.6 million from USD47.8 million.
Net interest income rose 25% to USD139.2 million from USD111.3 million, while net operating income rose 32% to USD151.4 million from USD114.8 million. Total operating expenses increased 30% to USD84.2 million from USD64.8 million.
ASA, which provides loans to low-income entrepreneurs, predominantly women, in South Asia, Southeast Asia, West Africa and East Africa, said its loan portfolio rose 12% year-on-year to USD603.9 million, despite challenging circumstances across many markets, the company said.
During the first half, ASA continued to wind down its operations in India, as it focuses on recovering overdue loans while growing the off-book portfolio.
ASA declared an interim dividend of 0.069 pence per share, 43% higher than 0.048 pence per share a year ago.
Looking forward, the company said it expects full-year underlying net profit to be USD70.2 million. "The outlook for the remainder of 2026 remains positive with resilient business and financial performance expected alongside continued client demand," the company said.
Chief Executive Rob Keijsers said: "These results mark a continuation in the growth of ASA International's profitability, reflecting a disciplined operating model that prioritises portfolio quality and sustainable returns over the pace of expansion.
"With a strengthened capital position, we are well-placed to fund the next phase of growth, while maintaining the same disciplined, measured approach that has underpinned our performance. We believe ASA International is well positioned to execute on its strategy and deliver sustainable, high-quality growth for the benefit of our shareholders, clients and lenders alike."
The company said loan demand would continue as it focuses on productivity and efficiency. It also noted the continued rollout of its core banking system and digital platform in Kenya and said it would begin preparations in additional countries in 2027. The company said it would look to expand its microinsurance product, ASA LifeCare, across all of its African and selected Asian markets.
Separately, ASA announced Chief Financial Officer Geert Embrechts has been formally appointed to its board.
Shares in ASA were up 0.6% at 254.46 pence on Wednesday afternoon in London.
By Niall Holden, Alliance News reporter
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