Asa International Group Plc · LSE:ASAI
Asa International — H1 2024 Earnings Presentation
27 slides from Asa International's earnings presentation, Sep 27, 2024
Slide 1: H1 2024 Results Presentation
H1 2024 Results Presentation ASA International Group plc 27 September 2024 Karin Kersten Chief Executive Officer Tanwir Rahman Chief Financial Officer
Slide 2: Karin Kersten, CEO
Karin Kersten CEO
Slide 3: Our vision, mission and values statement
Our vision, mission and values statement ASA International is one of the worlds' largest international microfinance institutions providing socially responsible financial services to low-income, primarily female entrepreneurs across Asia and Africa Our Vision Just and financially inclusive societies.
Slide 4: ASA International snapshot
ASA International snapshot Corporate head office Amsterdam, the Netherlands Corporate head office Dhaka, Bangladesh West Africa Nigeria, Ghana and Sierra Leone South Asia Pakistan, India and Sri Lanka South East Asia The Philippines and Myanmar East Africa Tanzania, Kenya, Uganda, Rwanda and Zambia
Slide 5: Highlights – H1 2024
Highlights – H1 2024 Sustained improvement in business and financial performance Number of branches Number of clients (m) Gross OLP(1) (USDm) +1% +7% 2.4 +14% 394.9 2,073 2,091 2.3 377.2 2,016 2.2 346.8 H1 2023 FY 2023 H1 2024 H1 2023 FY 2023 H1 2024 H1 2023 FY 2023 H1 2024 Profit before tax(2) (USD
Slide 6: Well diversified portfolio driving OLP growth
Well diversified portfolio driving OLP growth East Africa continues to be a key contributor South Asia OLP (1) (USD m) West Africa OLP (USD m) H1 2024 FY 2023 H1 2023 YTD % change H1 2024 FY 2023 H1 2023 YTD % change (Constant currency(2)) (Constant currency) 127.4 60.4 +8% +9% South Asia 117.5 West
Slide 7: Tanwir Rahman, CFO
Tanwir Rahman CFO
Slide 8: Financial snapshot – H1 2024
Financial snapshot – H1 2024 Sustained improvement in performance Profit before tax(1) (USDm) Net profit(1) (USDm) Cost-to-income(2) 32.2 13.5 72% 77% -15pp 28.3 +267% +105% 62% 8.8 13.8 3.7 FY 2023 H1 2023 H1 2024 FY 2023 H1 2023 H1 2024 FY 2023 H1 2023 H1 2024 Total assets (USDm) Total equity (USD
Slide 9: Positive yield and NIM trends
Positive yield and NIM trends GROSS YIELD, COST OF FUNDING, NIM(3) Gross yield increased to 42.1% in H1 2024 as subsidiaries with higher yields increased 42.1% their proportion of overall OLP. 39.1% 37.2% Upward adjustment of interest rates in India and Sri Lanka following the lifting of interes
Slide 10: Improved income driving enhanced profitability
Improved income driving enhanced profitability TOTAL OPERATING INCOME (USDm) PROFITABILITY (USDm) 148.2 9.3 +105% 84.8 68.6 9.7 32.2 138.9 3.6 +267% 28.3 75.1 65.0 13.8 13.5 8.8 3.7 FY 2023 H1 2023 H1 2024 FY 2023 H1 2023 H1 2024 Net interest income Other operating income Profit before tax Net profi
Slide 11: Operating expenses development
Operating expenses development TOTAL OPERATING EXPENSES (USDm) COST-TO-INCOME 111.1 5.8 77% 2.0 5.6 72% 62% 35.5 52.0 54.0 2.5 0.6 1.6 2.6 16.3 17.5 3.0 62.2 31.6 30.3 FY 2023 H1 2023 H1 2024 FY 2023 H1 2023 H1 2024 Personnel expenses Other operating expenses Depreciation Loss on net monetary positi
Slide 12: Increased funding with a stable sourcing profile
Increased funding with a stable sourcing profile FUNDING MIX BREAKDOWN(1, 2) Total funding increased to USD 443.4m as at 30 June 2024. USD 101m of new debt at broadly similar rates was raised in H1 2024 in line with 443.4 424.2 the overall funding strategy. 387.2 75.7 79.1 Local deposits have de
Slide 13: Hyperinflation accounting (IAS 29) update
Hyperinflation accounting (IAS 29) update Applies to Ghana and Sierra Leone. Nigeria and Pakistan on the watchlist Background and context Net Monetary Position (‘NMP’) IAS 29 “Financial Reporting in Hyperinflationary Economies” Non-monetary assets Equity applicable to operating entities which have
Slide 14: Karin Kersten, CEO
Karin Kersten CEO
Slide 15: Performance driven approach
Performance driven approach Role model approach Vision and strategy Recruits of new leaders with more related business Just and financially inclusive societies. experiences and knowledges for few countries. Increase in financial inclusion, addition of digital Facilitation of discussions amon
Slide 16: Growth strategy progress
Growth strategy progress Substantial progress already being made with more to come H1 2024 progress H2 2024 and beyond priorities OLP(1) grew from USD 369.2m to USD 384.6m in H1 Drive operational growth in existing markets. Increase 2024. Grow OLP and number of clients. financial Number of c
Slide 17: Digital transformation update
Digital transformation update Building on the success in Pakistan to deliver Ghana and Tanzania roll outs Pakistan – Core Banking System Sample Digital Financial Services App Migration of more than 600,000 clients in Pakistan from its incumbent loan system to the Temenos Transact Core Banking Syst
Slide 18: Key highlights and outlook
Key highlights and outlook Strong operational performance delivered in H1 2024. OLP increased year-on-year by 15%. Significantly improved profitability with net profit increasing by 267%. High portfolio quality was maintained alongside OLP growth. Total funding increased to USD 443.4m. T
Slide 19: Creating hope. Changing fortunes.
CREATING HOPE. CHANGING FORTUNES.
Slide 20: Group performance
Group performance (UNAUDITED) YTD YTD YoY (USD thousands unless H1 24 FY 23 H1 23 FY 22 Change Change Change otherwise stated) (CC) Profit before tax(1) 28,348 32,195 13,815 46,281 76% 94% 105% Net profit(1) 13,481 8,757 3,676 17,887 208% 252% 267% Cost/income ratio 62% 72% 77% 68% Return on average
Slide 21: Group performance (cont'd)
Group performance (cont’d) (UNAUDITED) YTD YTD YoY (USD thousands unless H1 24 FY 23 H1 23 FY 22 Change Change Change otherwise stated) (CC) Number of clients 2,375,114 2,330,498 2,224,542 2,299,558 2% 7% Number of branches 2,091 2,016 2,073 2,028 4% 1% Average Gross OLP per client (USD) 166 162 156
Slide 22: Intra-group cash flows
Intra-group cash flows Continuous cash flows back to the holding companies HOLDING COMPANIES ASA International N.V. ASA International Holding Dividends up- streamed Equity Franchise, Shareholder loans management and other service fees Interest and loan repayments Operating Entities Holdi
Slide 23: South Asia
South Asia Clients Branches OLP +1% -1% +8% ASA Pakistan continued to grow its business with the number of clients increased by 0.5% to 618k, and the number of branches remained at 345. OLP increased from USD 69.5m to USD 75.5m (up 8% on a constant currency basis). PAR>30 increased from 0.3% at ye
Slide 24: South East Asia
South East Asia Clients Branches OLP +6% +7% +1% Pagasa Philippines’ number of clients increased by 6% to 352k by 30 June 2024 and the number of branches increased by 30 to 400 with its loan portfolio also increasing from USD 54.2m at year-end 2023 to USD 56.0m at the end of June 2024 (up 9% on a
Slide 25: West Africa
West Africa Clients Branches OLP -12% +2% -16% ASA Savings & Loans’ client numbers decreased 5% to 192k serviced from 150 branches, up by 7 compared to the year-end of 2023. OLP decreased from USD 51.9m to USD 47.5m (up 17% on a constant currency basis). PAR>30 slightly increased from 0.1% to 0.2%
Slide 26: East Africa
East Africa Clients Branches OLP +9 % +8% +16% ASA Tanzania expanded its operation as the number of clients increased from 248k to 258k serviced from 211 branches, up by 9. OLP increased from USD 64.7m to USD 67.8m (up 10% on a constant currency basis). PAR>30 increased from 0.9% to 1.3%. ASA Ke
Slide 27: Legal Disclaimer
Legal Disclaimer IMPORTANT: You must read the following disclaimer before independent judgment and each person made aware of the publications, studies and surveys generally state that the data continuing. The following applies to this document, and the information set-forth here shall be responsible
ASA International Group — H1 2024 Earnings Presentation on 6ix