TIDMASAI
RNS Number : 6890L
ASA International Group PLC
17 May 2022
ASA International Group plc April 2022 business update
Amsterdam, The Netherlands, 17 May 2022 - ASA International,
('ASA International', the 'Company' or the 'Group'), one of the
world's largest international microfinance institutions, today
provides the following update on its business operations as at 30
April 2022.
-- Liquidity remains high with approximately USD 105m of
unrestricted cash and cash equivalents across the Group.
-- The pipeline of funding deals under negotiation totalled approximately USD 196m.
-- With the exception of India and Myanmar, all other operating
subsidiaries continued to achieve collection efficiency of more
than 90% with 8 countries achieving more than 95%.
-- India collections improved from 81% to 83%, despite the
substantial overdue collections and moratoriums provided to
clients. Collection efficiency, excluding instalments due from
clients receiving the one-time loan restructuring offered by the
Reserve Bank of India ('RBI'), however decreased from 116% to
111%.
-- T he benchmark PAR>30 for the Group, including off-book
loans and excluding loans overdue more than 365 days, slightly
decreased from 6.7% to 6.3%.
-- The PAR>30 for the Group's operating subsidiaries,
excluding India and Myanmar, remained at 1.9%.
-- Excluding all loans which have been overdue for more than 180
days and, as a result, have been fully provided for, PAR>30
remained broadly stable at 4.4% from 4.6%.
-- Disbursements as percentage of collections exceeded 100% in
10 countries. The decreasing percentage in India is primarily due
to the ongoing strategic decision to reduce disbursements while
political unrest in Myanmar and Sri Lanka led to the country
operations curtailing disbursements as a precaution.
-- With the number of clients broadly stable at 2.4m, despite
the continuing strategic focus in India on only collections, the
Gross OLP slightly increased to USD 418m (0.3 % higher than in
March 2022 and 13% lower than in April 2021).
-- The moratorium amount decreased from USD 21.7m to USD 20.1 m,
and is composed of the restructured loans of certain distressed
clients in India as per the RBI guidelines. No other operating
subsidiary granted moratoriums.
Funding
-- Unrestricted cash and cash equivalents remained high at approximately USD 105m.
-- The Company secured approximately USD 17m of new loans from
local and international lenders in April 2022.
-- The majority of the Company's USD 196m pipeline of future
wholesale loans are supported by agreed term sheets and/or draft
loan documentation. The terms and conditions of the remaining loans
are being negotiated with lenders.
Collection efficiency until 30 April 2022 (1)
Countries Nov/21 Dec/21 Jan/22 Feb/22 Mar/22 Apr/22
---------- ---------- ---------- --------- ---------
India 69% 74% 76% 76% 81% 83%
Pakistan 99% 99% 99% 100% 100% 100%
Sri Lanka 92% 94% 93% 93% 94% 93%
The Philippines 97% 97% 98% 98% 99% 99%
Myanmar 75% 78% 78% 72% 72% 72%
Ghana 99% 99% 99% 99% 100% 100%
Nigeria 97% 96% 95% 96% 96% 95%
Sierra Leone 92% 92% 92% 92% 94% 94%
Kenya 100% 100% 99% 100% 100% 100%
Uganda 98% 100% 100% 100% 100% 100%
Tanzania 100% 100% 100% 100% 100% 100%
Rwanda 97% 97% 97% 97% 97% 97%
Zambia 99% 99% 100% 100% 98% 98%
----------------------- ---------- ---------- ---------- --------- --------- ---------
(1) Collection efficiency refers to actual collections from clients
divided by realizable collections for the period. It is calculated
as follows: the sum of actual regular collections, actual overdue collections
and actual advance payments divided by the sum of realizable regular
collections, actual overdue collections and actual advance payments.
Under this definition collection efficiency cannot exceed 100%.
(2) Collections are impacted by the ongoing lockdowns and civil unrest
in some areas of our operations.
-- Collection efficiency across the Group increased or remained
broadly stable compared to the previous month in all countries
.
-- Collections in India improved to 83%, despite the substantial
overdue collections and moratoriums provided to clients. Collection
efficiency, excluding instalments due from clients receiving the
one-time loan restructuring, however decreased from 116% to
111%.
-- Collection efficiency in India, including regular and overdue
collections as well as advance payments, decreased from 113% to
109% as a percentage of the regular, realisable collections,
including advance payments. The substantial difference is due to
the Group's policy that any loan instalment paid is first credited
against the oldest outstanding amount overdue. This has an adverse
impact on India's monthly collection efficiency, which is further
aggravated by the relatively long duration of the loans disbursed
in India. This adjusted collection efficiency metric illustrates
that most clients in India continue to make payments on their loans
due.
Loan portfolio quality up to and including April 2022 (3, 4,
5)
Gross OLP (in USDm) Non-overdue loans PAR>30 less PAR>180
------------------------- ------------------------- -------------------------
Feb/22 Mar/22 Apr/22 Feb/22 Mar/22 Apr/22 Feb/22 Mar/22 Apr/22
India (total) 107 103 98 69.7% 70.1% 70.7% 10.2% 9.3% 8.6%
Pakistan 83 83 84 99.7% 99.7% 99.7% 0.2% 0.2% 0.2%
Sri Lanka 8 6 5 85.9% 86.7% 86.1% 4.1% 4.0% 4.2%
Philippines 47 47 48 95.7% 96.3% 96.6% 1.9% 1.6% 1.4%
Myanmar 21 21 20 58.5% 57.7% 61.8% 22.7% 29.3% 33.3%
Ghana 44 41 43 99.3% 99.3% 99.4% 0.2% 0.2% 0.2%
Nigeria 37 37 38 90.6% 90.3% 89.8% 3.6% 3.9% 3.9%
Sierra
Leone 7 7 7 71.1% 65.8% 78.4% 7.1% 6.8% 6.7%
Kenya 18 18 20 98.6% 98.6% 98.7% 0.6% 0.5% 0.5%
Uganda 10 11 11 91.7% 92.9% 93.7% 0.9% 0.4% 0.2%
Tanzania 37 38 40 99.1% 99.1% 99.1% 0.1% 0.2% 0.1%
Rwanda 3 3 3 92.4% 93.1% 93.2% 3.2% 3.1% 3.1%
Zambia 2 2 2 97.7% 96.8% 95.8% 0.8% 1.1% 1.6%
Group 424 417 418 87.7% 87.9% 89.0% 4.6% 4.6% 4.4%
PAR>30 PAR>90 PAR>180
------------------------- ------------------------- -------------------------
Feb/22 Mar/22 Apr/22 Feb/22 Mar/22 Apr/22 Feb/22 Mar/22 Apr/22
India (total) 17.1% 15.4% 14.3% 9.9% 8.7% 7.9% 6.9% 6.2% 5.7%
Pakistan 0.2% 0.2% 0.2% 0.1% 0.1% 0.1% 0.0% 0.0% 0.0%
Sri Lanka 6.9% 6.6% 6.9% 4.3% 4.2% 4.6% 2.8% 2.6% 2.6%
Philippines 2.7% 2.8% 2.8% 2.0% 2.1% 2.3% 0.8% 1.2% 1.4%
Myanmar 23.3% 29.8% 33.8% 0.9% 1.0% 14.4% 0.5% 0.5% 0.4%
Ghana 0.3% 0.3% 0.3% 0.2% 0.2% 0.2% 0.1% 0.1% 0.1%
Nigeria 5.8% 6.2% 6.2% 3.8% 4.0% 4.1% 2.2% 2.3% 2.3%
Sierra
Leone 9.5% 9.5% 9.8% 6.2% 6.8% 7.5% 2.4% 2.7% 3.1%
Kenya 1.1% 1.0% 0.9% 0.8% 0.7% 0.7% 0.5% 0.4% 0.4%
Uganda 2.4% 2.0% 1.7% 2.3% 1.9% 1.6% 1.4% 1.6% 1.6%
Tanzania 0.4% 0.4% 0.4% 0.3% 0.3% 0.3% 0.3% 0.2% 0.2%
Rwanda 5.1% 5.1% 4.9% 3.3% 3.5% 3.3% 1.9% 2.0% 1.8%
Zambia 1.1% 1.4% 1.9% 0.5% 0.6% 0.8% 0.3% 0.3% 0.3%
Group 6.8% 6.7% 6.3% 3.5% 3.1% 3.5% 2.2% 2.1% 1.9%
(3) Gross OLP includes the off-book BC and DA model, excluding interest
receivable and before deducting ECL provisions and modification loss.
(4) PAR>x is the percentage of outstanding customer loans with at
least one instalment payment overdue x days, excluding loans more
than 365 days overdue, to Gross OLP including off-book loans. Loans
overdue more than 365 days now comprise 3% of the Gross OLP.
(5) The table "PAR>30 less PAR>180" shows the percentage of outstanding
client loans with a PAR greater than 30 days, less those loans which
have been fully provided for.
-- PAR>30 for the Group slightly decreased from 6.7% to 6.3%.
-- Credit exposure of the India off-book BC portfolio of USD
33.8m is capped at 5%. The included off-book DA portfolio of USD
1.5m has no credit exposure.
Disbursements vs collections of loans until 30 April 2022
(6)
Countries Nov/21 Dec/21 Jan/22 Feb/22 Mar/22 Apr/22
--------- --------- --------- --------- --------
India 85% 88% 78% 65% 62% 52%
Pakistan 98% 100% 100% 96% 100% 117%
Sri Lanka 100% 113% 70% 115% 122% 55%
The Philippines 90% 81% 80% 93% 104% 112%
Myanmar 90% 95% 99% 99% 116% 77%
Ghana 114% 108% 74% 110% 115% 118%
Nigeria 134% 93% 71% 98% 98% 110%
Sierra Leone 112% 110% 97% 102% 113% 105%
Kenya 103% 55% 95% 101% 113% 125%
Uganda 121% 69% 81% 112% 118% 122%
Tanzania 109% 107% 114% 112% 110% 130%
Rwanda 105% 98% 65% 80% 107% 112%
Zambia 111% 109% 76% 80% 109% 116%
--------------------- --------- --------- --------- --------- -------- --------
(6) Disbursements vs collections refers to actual loan disbursements
made to clients divided by total amounts collected from clients in the
period.
-- Disbursements as percentage of collections exceeded 100% in
10 countries. The decreasing percentage in India was due to the
ongoing strategic decision to reduce disbursements while political
unrest in Myanmar and Sri Lanka led to the country operations
curtailing disbursements as a precaution.
Development of Clients and Outstanding Loan Portfolio until 30
April 2022
Gross OLP (in
Clients (in thousands) Delta USDm) Delta
Apr/21-Apr/22 Apr/21-Apr/22 Mar/22-Apr/22
Countries Apr/21 Mar/22 Apr/22 Apr/21-Apr/22 Mar/22-April/22 Apr/21 Mar/22 Apr/22 USD CC (7) USD
India 736 476 465 -37% -2% 175 103 98 -44% -42% -5%
Pakistan 454 541 552 22% 2% 76 83 84 11% 34% 1%
Sri Lanka 56 52 51 -9% -3% 9 6 5 -48% -7% -21%
The
Philippines 325 299 303 -7% 1% 54 47 48 -11% -4% 2%
Myanmar 123 112 110 -11% -2% 26 21 20 -23% -8% -7%
Ghana 157 162 164 4% 1% 47 41 43 -9% 19% 4%
Nigeria 257 241 237 -8% -2% 34 37 38 13% 23% 4%
Sierra Leone 39 42 41 4% -2% 5 7 7 22% 49% -4%
Kenya 109 123 127 17% 3% 16 18 20 25% 35% 7%
Uganda 85 95 96 14% 2% 9 11 11 26% 25% 7%
Tanzania 137 190 195 42% 3% 25 38 40 59% 59% 6%
Rwanda 18 18 18 -1% -1% 3 3 3 21% 25% 2%
Zambia 9 16 17 88% 4% 1 2 2 253% 169% 10%
Total 2.505 2.368 2.375 -5% 0,30% 479 417 418 -13% -2% 0,3%
(7) Constant currency ('CC') implies conversion of local
currency results to USD with the exchange rate from the beginning
of the period.
-- With the number of clients broadly stable at 2.4m, despite
the continuing strategic focus in India on only collections, Gross
OLP slightly increased to USD 418m (0.3 % higher than in March 2022
and 13% lower than in April 2021).
Selected moratoriums (8) on loan repayments until 30 April
2022
Clients under moratorium (in
thousands)
As % of Total
Countries Feb/22 Mar/22 Apr/22 Clients
India 205 205 205 44%
Group 205 205 205 9%
Moratorium amounts (USD
thousands)
April Moratoriums As % of Total
Countries Feb/22 Mar/22 Apr/22 as % of OLP Moratoriums
India 23.5 21.5 20.0 21% 100%
Group 23.5 21.5 20.0 5% 100%
(8) Moratoriums relate to clients who have received an extension
for the payment of one or more loan instalments during the
month.
-- Moratoriums on loan repayments relate to approximately 44% of
clients in India, who accepted to benefit from the one-time debt
restructuring scheme established by the RBI and confirmed in
September 2021, which ends in June 2022. See RBI Covid-19
Restructuring Guidelines .
-- The moratorium amount across the Group decreased to USD
20.1m, which represents 5 % of the Group's Gross OLP.
Key events in May 2022
-- In Sri Lanka nationwide curfews have been imposed by the
government due to ongoing civil and political protests. The Sri
Lanka operations have implemented certain measures including
restricting loan sizes in order to prevent clients from
over-borrowing due to the economic crisis.
-- Other than the existing partial lockdown and curfews in
Myanmar and Sri Lanka, the Company is not aware of any further
restrictions implemented in its operating countries as a result of
the emergence of the Omicron variant up until 16 May 2022.
Enquiries:
ASA International Group plc
Investor Relations +31 6 2030 0139
Véronique Schyns vschyns@asa-international.com
About ASA International Group plc
ASA International Group plc (ASAI: LN) is one of the world's
largest international microfinance institutions, with a strong
commitment to financial inclusion and socioeconomic progress. The
company provides small, socially responsible loans to low-income,
financially underserved entrepreneurs, predominantly women, across
South Asia, South East Asia, West and East Africa.
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