TIDMASAI
RNS Number : 0470P
ASA International Group PLC
16 June 2022
ASA International Group plc May 2022 business update
Amsterdam, The Netherlands, 16 June 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 31
May 2022.
-- Liquidity remains high with approximately USD 103m of
unrestricted cash and cash equivalents across the Group.
-- The pipeline of funding deals under negotiation totalled approximately USD 203m.
-- With the exception of India and Myanmar, all other operating
subsidiaries continued to achieve collection efficiency of more
than 90% with 10 countries achieving more than 95%.
-- India collections remained at 83%. Collection efficiency,
excluding instalments due from clients receiving the one-time loan
restructuring offered by the Reserve Bank of India ('RBI'), however
decreased from 111% to 109%.
-- T he benchmark PAR>30 for the Group, including off-book
loans and excluding loans overdue more than 365 days, slightly
improved from 6.3% to 6.0%.
-- 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
slightly decreased from 4.4% to 4.2%.
-- Disbursements as percentage of collections exceeded 100% in
10 countries. The decreasing percentage in Sri Lanka was primarily
due to the political unrest.
-- With the number of clients broadly stable at 2.4m, the
strategic reduction of disbursements in India and Sri Lanka and
currency depreciation versus USD across almost all markets,
particularly in Pakistan (7% depreciation in May), the Gross OLP
decreased to USD 414m (1.1% lower than in April 2022 and 12% lower
than in May 2021).
-- Gross OLP for the Group in constant currency was at the same
level as May 2021 at USD 473m. Gross OLP in constant currency,
excluding India, was USD 320m (23% higher than in May 2021).
-- The moratorium amount decreased from USD 19.8m to USD 18.4 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.
Going forward the Company will move from publishing monthly
business updates to quarterly updates. The next one will be the
August business update, published together with the 2022 Interim
results on 20 September 2022.
Funding
-- Unrestricted cash and cash equivalents remained high at approximately USD 103m.
-- The Company secured approximately USD 3m of new loans from
local and international lenders in May 2022.
-- The majority of the Company's USD 203m 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 31 May 2022 (1)
Countries Dec/21 Jan/22 Feb/22 Mar/22 Apr/22 May /22
---------- ---------- --------- --------- ---------
India 74% 76% 76% 81% 83% 83%
Pakistan 99% 99% 100% 100% 100% 100%
Sri Lanka 94% 93% 93% 94% 93% 92%
The Philippines 97% 98% 98% 99% 99% 99%
Myanmar 78%(2) 78%(2) 72%(2) 72%(2) 72%(2) 73%(2)
Ghana 99% 99% 99% 100% 100% 100%
Nigeria 96% 95% 96% 96% 95% 95%
Sierra Leone 92% 92% 92% 94% 94% 96%
Kenya 100% 99% 100% 100% 100% 100%
Uganda 100% 100% 100% 100% 100% 100%
Tanzania 100% 100% 100% 100% 100% 100%
Rwanda 97% 97% 97% 97% 97% 97%
Zambia 99% 100% 100% 98% 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 remained at 83%. Collection efficiency,
excluding instalments due from clients receiving the one-time loan
restructuring, however decreased from 111% to 109%.
-- Collection efficiency in India, including regular and overdue
collections as well as advance payments, decreased from 109% to
108% as a percentage of the regular, realisable collections,
including advance payments. The substantial difference between this
measure of collection efficiency and the version in the table above
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 May 2022 (3, 4,
5)
Gross OLP (in USDm) Non-overdue loans PAR>30 less PAR>180
------------------------- ------------------------- -------------------------
Mar-22 Apr-22 May-22 Mar-22 Apr-22 May-22 Mar-22 Apr-22 May-22
India (total) 103 98 94 70.1% 70.7% 71.2% 9.3% 8.6% 8.0%
Pakistan 83 84 80 99.7% 99.7% 99.7% 0.2% 0.2% 0.2%
Sri Lanka 6 5 4 86.7% 86.1% 81.6% 4.0% 4.2% 4.7%
Philippines 47 48 48 96.3% 96.6% 96.9% 1.6% 1.4% 1.2%
Myanmar 21 20 20 57.7% 61.8% 60.2% 29.3% 33.3% 33.1%
Ghana 41 43 43 99.3% 99.4% 99.4% 0.2% 0.2% 0.2%
Nigeria 37 38 40 90.3% 89.8% 90.6% 3.9% 3.9% 3.9%
Sierra
Leone 7 6 6 65.8% 78.4% 87.1% 6.8% 6.7% 5.3%
Kenya 18 20 20 98.6% 98.7% 98.8% 0.5% 0.5% 0.4%
Uganda 11 11 11 92.9% 93.7% 94.4% 0.4% 0.2% 0.1%
Tanzania 38 40 42 99.1% 99.1% 99.1% 0.2% 0.1% 0.2%
Rwanda 3 3 4 93.1% 93.2% 93.5% 3.1% 3.1% 3.0%
Zambia 2 2 2 96.8% 95.8% 95.5% 1.1% 1.6% 2.4%
Group 417 418 414 87.9% 89.0% 89.4% 4.6% 4.4% 4.2%
PAR>30 PAR>90 PAR>180
------------------------- ------------------------- -------------------------
Mar-22 Apr-22 May-22 Mar-22 Apr-22 May-22 Mar-22 Apr-22 May-22
India (total) 15.4% 14.3% 13.1% 8.7% 7.9% 7.1% 6.2% 5.7% 5.2%
Pakistan 0.2% 0.2% 0.2% 0.1% 0.1% 0.1% 0.0% 0.0% 0.0%
Sri Lanka 6.6% 6.9% 7.4% 4.2% 4.6% 4.9% 2.6% 2.6% 2.7%
Philippines 2.8% 2.8% 2.8% 2.1% 2.3% 2.4% 1.2% 1.4% 1.6%
Myanmar 29.8% 33.8% 33.6% 1.0% 14.4% 24.7% 0.5% 0.4% 0.5%
Ghana 0.3% 0.3% 0.3% 0.2% 0.2% 0.2% 0.1% 0.1% 0.1%
Nigeria 6.2% 6.2% 6.1% 4.0% 4.1% 4.1% 2.3% 2.3% 2.2%
Sierra
Leone 9.5% 9.8% 10.1% 6.8% 7.5% 8.2% 2.7% 3.1% 4.7%
Kenya 1.0% 0.9% 0.9% 0.7% 0.7% 0.7% 0.4% 0.4% 0.4%
Uganda 2.0% 1.7% 1.5% 1.9% 1.6% 1.5% 1.6% 1.6% 1.4%
Tanzania 0.4% 0.4% 0.4% 0.3% 0.3% 0.3% 0.2% 0.2% 0.2%
Rwanda 5.1% 4.9% 4.7% 3.5% 3.3% 3.3% 2.0% 1.8% 1.7%
Zambia 1.4% 1.9% 2.7% 0.6% 0.8% 1.1% 0.3% 0.3% 0.3%
Group 6.7% 6.3% 6.0% 3.1% 3.5% 3.8% 2.1% 1.9% 1.8%
(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 6.3% to 6.0%.
-- Credit exposure of the India off-book BC portfolio of USD
33.1m is capped at 5%. The included off-book DA portfolio of USD
1.5m has no credit exposure.
Disbursements vs collections of loans until 31 May 2022 (6)
Countries Dec/21 Jan/22 Feb/22 Mar/22 Apr/22 May/22
--------- --------- --------- --------- --------
India 88% 78% 65% 62% 52% 72%
Pakistan 100% 100% 96% 100% 117% 118%
Sri Lanka 113% 70% 115% 122% 55% 42%
The Philippines 81% 80% 93% 104% 112% 105%
Myanmar 95% 99% 99% 116% 77% 106%
Ghana 108% 74% 110% 115% 118% 112%
Nigeria 93% 71% 98% 98% 110% 120%
Sierra Leone 110% 97% 102% 113% 105% 93%
Kenya 55% 95% 101% 113% 125% 112%
Uganda 69% 81% 112% 118% 122% 112%
Tanzania 107% 114% 112% 110% 130% 120%
Rwanda 98% 65% 80% 107% 112% 129%
Zambia 109% 76% 80% 109% 116% 125%
--------------------- --------- --------- --------- --------- -------- --------
(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 Sri Lanka was primarily
due to the political unrest.
Development of Clients and Outstanding Loan Portfolio until 31
May 2022
Gross OLP (in
Clients (in thousands) Delta USDm) Delta
May/21-May/22 May/21-May/22 Apr/22-May/22
Countries May-21 Apr-22 May-22 May/21-May/22 Apr/22-May/22 May-21 Apr-22 May-22 USD CC (7) USD
India 724 465 462 -36% -1% 168 98 94 -44% -40% -4%
Pakistan 462 552 561 21% 2% 76 84 80 5% 36% -5%
Sri Lanka 56 51 49 -12% -4% 9 5 4 -51% -9% -9%
The
Philippines 331 303 306 -8% 1% 55 48 48 -13% -4% 1%
Myanmar 120 110 109 -9% 0% 24 20 20 -17% -6% 1%
Ghana 157 164 165 4% 1% 46 43 43 -8% 24% -1%
Nigeria 253 237 233 -8% -2% 32 38 40 25% 26% 4%
Sierra Leone 40 41 40 0% -3% 6 6 6 11% 41% -7%
Kenya 109 127 131 21% 3% 16 20 20 23% 34% 3%
Uganda 86 96 100 16% 4% 9 11 11 16% 24% -2%
Tanzania 141 195 199 41% 2% 27 40 42 55% 55% 4%
Rwanda 18 18 18 2% 2% 3 3 4 23% 27% 7%
Zambia 9 17 18 95% 4% 1 2 2 216% 142% 5%
Total 2,506 2,375 2,390 -5% 0.7% 472 418 414 -12% 0.3% -1.1%
(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, the
strategic reduction of disbursements in India and Sri Lanka and
currency depreciation versus USD across almost all markets,
particularly in Pakistan (7% depreciation in May) , the Gross OLP
decreased to USD 414m (1.1% lower than in April 2022 and 12% lower
than in May 2021).
-- Gross OLP for the Group in constant currency was at the same
level as May 2021 at USD 473m. Gross OLP in constant currency,
excluding India, was USD 320m (23% higher than in May 2021).
Selected moratoriums (8) on loan repayments until 31 May
2022
Clients under moratorium (in
thousands)
As % of Total
Countries Mar/22 Apr/22 May/22 Clients
India 205 205 205 44%
Group 205 205 205 9%
Moratorium amounts (USD
thousands)
May Moratoriums As % of Total
Countries Mar/22 Apr/22 May/22 as % of OLP Moratoriums
India 21,150 19,750 18,399 20% 100%
Group 21,150 19,750 18,399 4% 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
18.4m, which represents 4 % of the Group's Gross OLP.
Key events in June 2022
-- Other than the existing partial lockdown and curfews in
Myanmar, 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 13 June 2022.
Enquiries:
ASA International Group plc
Head of Investor Relations
Véronique Schyns
IR@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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