ASA International Group PLC · LSE:ASAI
ASA International — H1 2021 Earnings Presentation
27 slides from ASA International's earnings presentation, Sep 21, 2021
Slide 1: H1 2021 Results Presentation
H1 2021 RESULTS PRESENTATION ASA International Group plc 21 September 2021 Dirk Brouwer Chief Executive Officer
Slide 2: Improving operational performance
Improving operational performance YoY YTD YTD USDm H1 2021 FY 2020 H1 2020 FY 2019 % change % change % change cc(6) Number of Clients 2.5 2.4 2.3 2.5 7% 5% (millions) Number of Branches 2,036 1,965 1,956 1,895 4% 4% Average OLP / client 182 187 177 186 3% -3% -0.2% KPIs PAR>30dpd (1) 12.3% 13.1% 3.0
Slide 3: Highlights – H1 2021
Highlights – H1 2021 } Operational and financial performance substantially improved with pre-tax profit increasing to USD 7.5m in H1 2021 from USD 2.6m in FY 2020. } The recovery of our operations was led by strong operational and financial performance in Ghana, Pakistan and Tanzania, which delivere
Slide 4: Diversified portfolio
Diversified portfolio # OF CLIENTS OLP(1) South Asia % Loans RoAA(2) 2.5 2.3 2.4 2.5 467.4 388.6 415.3 415.0 50.0% -5.5% East Africa East Africa East Africa East Africa East Africa East Africa East Africa East Africa 9.5% South East Asia 13.8% 12.9% 13.4% 11.1% 10.9% 13.1% 14.9% West Africa West Afr
Slide 5: Highlights – H1 2021 (Cont’d)
Highlights – H1 2021 (Cont’d) Regional performance } South Asia - ASA Pakistan continued to grow its OLP while maintaining a strong portfolio quality since the end of 2020. - Due to the second wave of infections of Covid-19 and associated lockdowns, operations were substantially disrupted in India a
Slide 6: Operational and financial performance
Operational and financial performance # OF BRANCHES # OF CLIENTS (M) YTD(1): 4% YTD: 5% H1 2021 2,036 H1 2021 2.5 FY 2020 1,965 FY 2020 2.4 H1 2020 1,956 H1 2020 2.3 FY 2019 1,895 FY 2019 2.5 OLP (USD M) NET PROFIT (USD M) YTD: -0.1% (YTD 2% on constant currency basis) YTD: 203% (YTD 170% on constan
Slide 7: Asset quality & margin development
Asset quality & margin development GROSS YIELD, COST OF FUNDING AND NET OLP AND PAR > 30DPD(1) INTEREST MARGIN } PAR>30 decreased from 13.1% to 1.5% 3.0% 13.1% 12.3% 12.3% (after the restructuring of loans outstanding of approx. 30% of 467.4 415.3 415.0 35.5% clients in India) by the end of June 33.
Slide 8: Strong funding profile with disciplined ALM
Strong funding profile with disciplined ALM FUNDING BREAKDOWN(1) 507.1 479.7 524.9 526.5 } The funding profile of the Group has not materially changed during H1 2021. 80.2 86.9 78.1 } As of 30 June 2021, the Group had approximately 74.5 USD 108m of unrestricted cash and cash equivalents, with a fund
Slide 9: Regulatory update
Regulatory update Aim to become fully Central Bank regulated, embedded in local financial community and with the capacity to mobilize deposits Pakistan State Bank of Pakistan completed the inspection in August. The Company is now awaiting the final license (which may contain certain conditions to be
Slide 10: August 2021 business update
August 2021 business update } Collection efficiency across the COLLECTION EFFICIENCY(1,2) Group increased or remained Collection efficiency until 31 August 2021 broadly stable compared to the Country Jan/21 Feb/21 Mar/21 Apr/21 May/21 Jun/21 Jul/21 Aug/21 previous month in all countries. India 82% 8
Slide 11: August 2021 business update (Cont’d)
August 2021 business update (Cont’d) } PAR>30 for the Group improved Loan portfolio quality up to 31 August 2021(1,2) slightly to 15.3%, primarily due to Gross OLP (In USDm) PAR>30 PAR>30 less PAR>180 the marginal improvements in Country Jun/21 Jul/21 Aug/21 Jun/21 Jul/21 Aug/21 Jun/21 Jul/21 Aug/21
Slide 12: Our growth strategy 2021-2025
Our growth strategy 2021-2025 is based on 3 pillars Increase Increase Open new Greenfield Broaden financial EXPANSION number of volume of branches in branches in services (savings, STRATEGY clients per loans per existing countries new SME lending, branch client of operation countries payments) Digit
Slide 13: Summary and outlook
Summary and outlook Summary } The Company’s operational and financial performance substantially improved during H1 2021, with record profits delivered in major markets such as Ghana, Pakistan, and Tanzania. } Group profitability was held back by substantial additional provisions for credit losses in
Slide 14: Appendix
yy / «an ASA 2) CREATING HOPE. CHANGING FORTUNES. Appendix a ‘3 i j ‘ A f <> % > ~~ ah bt — 4%, a
Slide 15: Update from the field
Update from the field } PAR>90 remained more or less Loan portfolio quality up to 31 August 2021 stable at 11%. However, PAR>180 increased as of June PAR>90 PAR>180 Country 21 with significant increase Jun/21 Jul/21 Aug/21 Jun/21 Jul/21 Aug/21 observed for India and Philippines. India (total) 21.0%
Slide 16: Update from the field (Cont’d)
Update from the field (Cont’d) } With the business environment Disbursements vs Collections(1) : continuing to gradually improve in 2021 many countries, disbursements of Country new loans continued to stabilise Jan/21 Feb/21 Mar/21 Apr/21 May/21 Jun/21 Jul/21 Aug/21 or increase in amount and as a In
Slide 17: Clients and OLP development
Clients and OLP development } With disbursements stabilising or increasing in many countries, but significantly reduced or halted in India and Myanmar, Gross OLP remained stable at USD 442m in August 2021 compared to the previous month. Clients (in thousands) Delta Gross OLP (in USD m) Delta Country
Slide 18: Moratorium
Moratorium } Moratoriums(1) granted in Sri Lanka and Myanmar were due to disruption in operations following national lockdowns. Clients under moratorium (in thousands) Moratorium amounts (USD thousands)(2) August Country As % of As % of total Jun/21 Jul/21 Aug/21 Jun/21 Jul/21 Aug/21 moratoriums as
Slide 19: Income statement
Income statement USD millions H1 2021 FY 2020 H1 2020 FY 2019 Interest and Similar Income 93.0 142.0 61.1 166.3 Interest and Similar Expense (21.9) (40.4) (21.0) (39.2) Net Interest Income 71.0 101.6 40.1 127.1 Other Operating income 5.1 10.5 4.7 13.6 Total Operating Income 76.2 112.0 44.8 140.7 Cre
Slide 20: Balance sheet
Balance sheet USD millions H1 2021 FY 2020 H1 2020 FY 2019 Cash at bank and in hand 90.2 90.1 84.2 84.5 Loans and advances to customers 380.6 380.1 347.3 412.3 Due from banks 75.7 73.3 70.7 37.3 Equity Investments at FVOCI 0.2 0.2 0.2 0.2 Property and equipment 4.4 4.6 4.8 5.3 Right-of-use assets 5.
Slide 21: Breakdown of operating segment financials
Breakdown of operating segment financials As at 30 June 2021 in West Africa East Africa South Asia South East Asia USD millions External interest and similar income 29.6 14.7 30.6 17.9 Inter-segment interest income - - - - External interest expense (2.4) (2.4) (11.7) (3.2) Inter-segment interest exp
Slide 22: Overview of Segments
Overview of Segments South Asia South East Asia West Africa East Africa Sierra India Pakistan Sri Lanka Philippines Myanmar Ghana Nigeria Leone Tanzania Kenya Uganda Rwanda Zambia 2008 2008 2007 2007 2014 2008 2009 2016 2014 2013 2013 2016 2019 Segmental breakdown OLP (1) Branches Clients 13% 19% 15
Slide 23: South Asia
South Asia As at 30 Jun 2021, India Pakistan Sri Lanka unless otherwise stated ASA International India Name of Entity Microfinance Private Limited ASA Pakistan Ltd Lak Jaya Micro Finance Ltd. Type NBFC(1) Lending Company(2) Deposit Taking Microfinance Company(3) Securities and Exchange Commission of
Slide 24: South East Asia
South East Asia As at 30 June 2021, Philippines Myanmar unless otherwise stated Name of Entity Pagasa Philippines Finance Corporation ASA Microfinance (Myanmar) Ltd. Type Finance Company Deposit Taking Microfinance Institution(1) Securities and Exchange Commission Financial Regulatory Department Reg
Slide 25: West Africa
West Africa As at 30 June 2021, Nigeria Ghana Sierra Leone unless otherwise stated ASA Microfinance Name of Entity ASHA Microfinance Bank Ltd ASA Savings & Loans Ltd (Sierra Leone) Ltd. Deposit Taking Savings and Loan Type Microfinance Bank Company Lending Company Regulator Central Bank of Nigeria B
Slide 26: East Africa
East Africa As at 30 June 2021, Tanzania Kenya Uganda Rwanda Zambia unless otherwise stated Name of Entity ASA Microfinance ASA International ASA Microfinance ASA Microfinance ASA Microfinance (Tanzania) Ltd. (Kenya) Limited (Uganda) Ltd. (Rwanda) Ltd. (Zambia) Ltd. Type Deposit Taking Lending Compa
Slide 27: Legal Disclaimer
Legal Disclaimer } IMPORTANT: You must read the following disclaimer presentation is not to be relied upon in any manner as } To the extent available, the industry, market and before continuing. The following applies to this legal, tax or any other advice and shall not be used in competitive positio
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