22nd Jul 2025 15:14
(Alliance News) - ASA International Group PLC shares rose on Tuesday after it recounted a "robust" second quarter with "significant" growth for its loan portfolio.
The stock was up 7.0% at 137.00 pence in London on Tuesday afternoon.
The Worthing, England-based microfinance provider said that in the second quarter of 2025, it built on positive momentum from 2024 to deliver robust operational results.
ASA said its gross outstanding loan portfolio grew to USD539.5 million at June 30, a 16% increase from USD465.2 million at the end of the first quarter, and up 37% from USD394.9 million one year prior.
"This growth was driven primarily by Ghana, where Gross OLP rose by [USD59 million] during Q2 2025, reflecting both strong underlying portfolio expansion and a 33% appreciation of the Ghanaian cedi," ASA explained. "Additional notable contributions came from Uganda, Tanzania, Nigeria, and Myanmar."
It said the loan portfolio's quality continued to strengthen, too, with "PAR>30" (the percentage of outstanding loans with at least one instalment payment overdue by 30 days, with 'PAR' meaning 'portfolio at risk') "significantly" improving to 1.5% at June 30 from 2.2% at March 31. ASA attributed this to better portfolio quality in Sierra Leone, Nigeria and the Philippines.
ASA's enhanced credit life insurance product, in partnership with Africa-focused insurer Turaco, has been officially rolled out in Uganda and is launching in Kenya. ASA expects the offering, which it intends to expand across its six other African markets, "to bolster client retention and generate additional non-interest income".
The total number of ASA clients increased 9% on-year to 2.6 million at June 30, from 2.4 million one year prior, "primarily driven by increased client numbers in Uganda, Kenya, Ghana, Tanzania and Nigeria".
Uganda showed the sharpest growth, with client numbers rising 36% on-year to 179,000 from 131,000. Numbers in India "naturally" dropped 33% to 129,000 from 193,000, due to ASA's "deliberate shrinkage" of the business there. ASA said the board expects its full de-consolidation by the end of December.
Chief Executive Officer Rob Keijsers hailed ASA's "outstanding performance", adding: "Our strong operational growth, reflected by the significant increase in OLP and sustained improvements in portfolio quality, demonstrates our ability to deliver meaningful financial services to underserved female entrepreneurs...As we continue to expand our reach and strengthen our leadership, we remain committed to delivering increased financial inclusion for the communities we serve and sustainable growth for all stakeholders."
By Emma Curzon, Alliance News reporter
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