ASA International shares dip despite its outstanding loan portfolio jumping 23%

ASA International shares dip despite its outstanding loan portfolio jumping 23%

ASA International Group (LON:ASAI), one of the world’s largest microfinancing organisations, today posted good progress in its yearly financial performance for the period ended 31 December 2019.

The company boasted a 23% rise in its outstanding loan portfolio, up to $466.8 million at the end of the year. Additionally, its average OLP per client grew 8% from $174 million to $189 million.

Its trading position was also strengthened by an expansion of its operations and potential business partners. ASA International noted that its number of clients was up 14% from 2.2 million to 2.5 million, and likewise, its number of branches rose 14% from 1,665 to 1,898 year-on-year.

Today’s share price dip was caused by results being slightly below the company’s expectations. It said this could be attributed to ‘adverse conditions in India, Nigeria and Sri Lanka, which results in a slightly higher PAR>30.

ASA International reactions

Responding to the results, company CEO Dirk Brouwer commented,

“The operational performance of the Group has been strong during 2019, with continued client and loan portfolio growth in all our markets. We realized higher than expected growth in East Africa which was offset by lower than expected growth in India, Nigeria and Sri Lanka due to adverse market conditions.  As a result, and combined with significant currency depreciation in Pakistan and Ghana, 2019 USD earnings growth is now expected to be around 5%.”

“We expect continued sustainable growth of our operations through 2020 with mid-to-high single digit USD earnings growth.”

Investor notes

Following the update, the company’s shares were down 2.60% or 7.00p, to 262.00p per share 25/02/20 12:37 GMT. The Group’s p/e ratio stands at 17.38, their dividend yield is 2.13%.