We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Asa International Group Plc | LSE:ASAI | London | Ordinary Share | GB00BDFXHW57 | ORD GBP1 |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-0.50 | -0.77% | 64.75 | 62.00 | 67.50 | 66.00 | 66.00 | 66.00 | 25,225 | 16:35:07 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMASAI
RNS Number : 7307F
ASA International Group PLC
20 July 2021
ASA International Group plc June 2021 business update
Amsterdam, The Netherlands, 20 July 2021 - ASA International, ('ASA International', the 'Company' or the 'Group'), one of the world's largest international microfinance institutions, today provides the following update of the impact of COVID-19 on its business operations as at 30 June 2021.
-- Liquidity remains high with approximately USD 108m of unrestricted cash and cash equivalents across the Group.
-- The pipeline of funding deals under negotiation totalled approximately USD 163m.
-- With the exception of India, Sri Lanka and Myanmar, all other operating companies achieved collection efficiency of more than 94%.
-- India collections decreased further to 55% due to lockdowns in most states following the second wave of COVID-19 affecting the whole country.
-- Sri Lanka collections for the month dropped to 38% following nationwide lockdowns.
-- The Philippines collections increased to 99% following improvements in the operating environment due to fewer restrictions on movement of people.
-- Collections in Myanmar increased to 70% despite the ongoing disruptions following the military's takeover of the Government.
-- Portfolio quality remained challenging, particularly in India with benchmark PAR>30 for the Group, including off-book loans and excluding loans overdue more than 365 days, increasing to 14.8% from 14.0% in May 2021, and PAR>90 slightly improving to 11.1% from 11.6% in May 2021. The Group's operating subsidiaries, excluding India, the Philippines and Myanmar, collectively have been able to maintain PAR>30 at 3.5%.
-- Disbursements as percentage of collections exceeded 100% in 5 countries with much lower percentages seen in India, Sri Lanka, and Uganda, due to amongst others lockdowns.
-- The number of clients remained around 2.5m, while Gross OLP decreased to USD 459m (11% higher than in June 2020 and 2.5% lower compared to May 2021), due to amongst others the lockdowns in India.
-- The moratoriums granted in June amounted to USD 48.3 m, primarily due to loan restructuring of distressed clients in India as per the Reserve Bank of India ('RBI') guidelines.
Health impact of COVID-19 on staff and clients
-- The immediate health impact of COVID-19 on the Company's operations remained low with only 247 of over 12,500 staff members confirmed as infected since March 2020 , but with no deaths . Since March 2020, confirmed infections amongst 2.5m clients increased from 4,977 at the end of May 2021 to 7,262 as at 30 June 2021, resulting in 73 deaths since the start of the pandemic. Of the 73 client deaths across the Group, 32 are from India, with 9 of those deaths occurring in June 2021.
Funding
-- Unrestricted cash and cash equivalents remained high at approximately USD 108m.
-- The Company secured approximately USD 34m of new loans from local and international lenders in June 2021.
-- The majority of the Company's USD 163m 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.
-- The Group is exploring the possibilities to raise some local (Indian) equity capital to strengthen the balance sheet of ASA India, in view of the increasing amount of ECL provisions in India.
Collection efficiency until 30 June 2021 (1,2)
Countries Jan/21 Feb/21 Mar/21 Apr/21 May/21 Jun/21 ------- ------- ------- ------- ------- India 82% 84% 87% 87% 67% 55% Pakistan 98% 99% 99% 99% 99% 99% Sri Lanka 97% 90% 91% 93% 57% 38% The Philippines 75% 80% 85% 84% 89% 99% Myanmar 89% 78% 59% 55% 67% 70% Ghana 99% 100% 100% 100% 99% 99% Nigeria 95% 97% 96% 95% 94% 96% Sierra Leone 95% 89% 96% 93% 92% 94% Kenya 97% 98% 100% 100% 99% 99% Tanzania 99% 100% 100% 100% 100% 100% Uganda 87% 93% 99% 100% 100% 95% Rwanda 93% 91% 96% 95% 96% 96% Zambia 100% 100% 100% 100% 99% 100% ----------------- ------- ------- ------- ------- ------- ------- (1) Collection efficiency refers to actual collections from clients divided by expected collections for the period; since any moratorium on the repayment of loans are only granted to clients after the end of the month, the collection efficiency is not affected by the grant of such moratorium. (2) As of December 2020, the definition of collection efficiency has been amended in view of the increased amount of overdue collection and advance payments in various countries to: the sum of actual regular collections, actual overdue collections and actual advance payments divided by the sum of expected regular collections, actual overdue collections and actual advance payments. This also means that collection efficiency no longer can exceed 100%.
-- Collection efficiency across the Group increased or remained broadly stable compared to the previous month in all countries, with the exception of India and Sri Lanka .
-- Collections in India decreased to 55 % compared to the previous month, due to the increased disruptions to operations following lockdowns in most States, as a result of the severe second wave of COVID-19, which affected disbursements and also caused the Group to explore the possibilities to raise some equity capital for ASA India (see the Funding paragraph).
-- Collections in Sri Lanka reduced to 38% due to the implementation of new lockdowns.
-- In the Philippines collections improved significantly to 99%, as some local and regional restrictions on movement of people were partially lifted.
-- Collections in Myanmar increased to 70% compared to the previous month, despite disruptions to the ordinary life of citizens caused by the military's takeover of the Government and ongoing nation-wide protests.
Loan portfolio quality up to and including June 2021(3,4)
Gross OLP (in USDm) Non-overdue loans PAR>30 ------------------------------------- ------------------------- ------------------------- Apr/21 May/21 Jun/21 Apr/21 May/21 Jun/21 Apr/21 May/21 Jun/21 India (total) 177 167 155 70.0% 47.3% 57.5% 24.3% 27.8% 31.4% Pakistan 76 76 75 96.9% 97.0% 98.4% 2.3% 1.8% 1.5% Sri Lanka 9 9 8 89.0% 36.3% 62.7% 6.0% 7.7% 12.1% Philippines 54 54 55 75.7% 76.8% 76.6% 21.7% 20.8% 20.0% Myanmar 26 24 24 48.8% 58.2% 64.7% 3.1% 0.9% 0.7% Ghana 47 46 46 99.4% 99.3% 99.2% 0.3% 0.3% 0.3% Nigeria 34 32 33 91.3% 90.5% 90.8% 5.3% 5.3% 5.1% Sierra Leone 5 6 6 91.9% 92.2% 93.5% 4.6% 4.5% 4.3% Kenya 16 17 17 86.0% 86.9% 87.6% 13.0% 12.1% 11.4% Uganda 9 9 9 84.9% 87.4% 69.7% 14.9% 12.4% 12.7% Tanzania 25 27 28 97.9% 98.1% 98.1% 1.9% 1.7% 1.6% Rwanda 3 3 3 87.4% 89.0% 89.5% 9.7% 8.9% 8.4% Zambia 1 1 1 98.6% 98.4% 98.9% 1.4% 0.7% 1.1% Group 482 470 459 81.1% 73.1% 78.0% 13.3% 14.0% 14.8% PAR>90 PAR>180 ------------------------- ------------------------- Apr/21 May/21 Jun/21 Apr/21 May/21 Jun/21 India (total) 18.4% 21.9% 21.8% 8.4% 12.5% 17.1% Pakistan 2.1% 1.7% 1.3% 1.8% 1.4% 1.1% Sri Lanka 3.6% 4.0% 4.0% 3.0% 3.1% 2.8% Philippines 19.1% 20.1% 19.4% 2.2% 2.5% 2.6% Myanmar 2.3% 0.6% 0.5% 1.7% 0.3% 0.2% Ghana 0.3% 0.3% 0.2% 0.3% 0.2% 0.2% Nigeria 3.9% 3.7% 3.4% 3.1% 2.8% 2.3% Sierra Leone 3.2% 3.2% 3.2% 1.9% 1.8% 1.7% Kenya 12.7% 11.8% 11.1% 11.5% 11.3% 10.8% Uganda 14.9% 12.4% 12.6% 7.3% 10.1% 12.1% Tanzania 1.7% 1.6% 1.5% 1.5% 1.4% 1.3% Rwanda 7.8% 7.1% 7.1% 5.0% 5.4% 5.6% Zambia 1.3% 0.4% 1.1% 1.0% 0.2% 0.8% Group 10.6% 11.6% 11.1% 4.6% 6.0% 7.3% (3) 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 outstanding loan portfolio including off-book loans. (4) Gross loan portfolio includes the off-book BC and DA model, excluding interest receivable and before deducting ECL provisions and modification loss.
-- PAR>30 for the Group increased to 14.8%, primarily due to the decreased collections in India and following restructuring of loans for clients by offering moratoriums to clients impacted by the recent lockdowns.
-- Credit exposure of the India off-book BC portfolio of USD 38.7m is capped at 5%. The included off-book DA portfolio of USD 2.3m has no credit exposure.
Disbursements vs collections of loans until 30 June 2021(5)
Countries Jan/21 Feb/21 Mar/21 Apr/21 May/21 Jun/21 --------- --------- -------- -------- --------- India 90% 104% 131% 71% 3% 5% Pakistan 97% 99% 99% 102% 89% (6) 102% Sri Lanka 95% 116% 92% 43% 17% 0% The Philippines 113% 101% 96% 88% 91% 88% Myanmar 144% 55% 71% 30% 76% 87% Ghana 94% 112% 118% 99% 91% (6) 99% Nigeria 68% 105% 109% 109% 108% 109% Sierra Leone 89% 109% 110% 95% 101% 118% Kenya 97% 113% 107% 100% 100% 93% Uganda 46% 99% 99% 105% 99% 53% Tanzania 78% 97% 102% 107% 109% 96% Rwanda 60% 73% 86% 95% 106% 81% Zambia 137% 140% 115% 107% 142% 170% --------------------- --------- --------- -------- -------- --------- -------- (5) Disbursements vs collections refers to actual loan disbursements made to clients divided by total loans collected from clients in the period. (6) Slowdown in disbursements due to official EID holidays in second week of May.
-- With the business environment continuing to gradually improve in many countries, disbursements of new loans continued to stabilise or increase in amount and as a percentage of weekly collections, with the exception of India, Sri Lanka and Uganda, due to amongst others the lockdowns.
Development of Clients and Outstanding Loan Portfolio until 30 June 2021
Gross OLP (in Clients (in thousands) Delta USDm) Delta Jun/20- May/21 May/21 Jun/20- Jun/21 - Jun/20- - Jun/21 CC Jun/21 Countries Jun/20 May/21 Jun/21 Jun/21 Jun/21 Jun/20 May/21 Jun/21 USD (7) USD India 727 735 721 -1% -2% 171 167 155 -9% -11% -7% Pakistan 409 462 468 14% 1% 54 76 75 39% 31% -1% Sri Lanka 56 56 54 -2% -3% 9 9 8 -4% 3% -3% The Philippines 308 331 335 9% 1% 48 54 55 15% 13% 1% Myanmar 140 120 119 -15% -1% 30 24 24 -20% -5% 0% Ghana 134 158 157 17% -1% 34 46 46 36% 38% -2% Nigeria 225 253 251 12% -1% 24 32 33 38% 46% 3% Sierra Leone 30 40 40 31% 0% 3 6 6 93% 103% 5% Kenya 78 109 113 44% 3% 12 17 17 35% 37% 1% Uganda 96 86 85 -11% -1% 9 9 9 -5% -10% -9% Tanzania 104 141 147 42% 4% 15 27 28 82% 82% 3% Rwanda 20 18 17 -13% -2% 3 3 3 9% 13% 0% Zambia 3 9 10 182% 10% 0 1 1 246% 332% 21% Total 2,332 2,518 2,517 8% 0% 412 470 459 11% 12% -2.5%
(7) Constant currency ('CC') implies conversion of local currency results to USD with the exchange rate from the beginning of the period.
-- With disbursements decreasing mainly in India , Gross OLP decreased 2.5% to USD 459m in June 2021 compared to the previous month.
Selected moratoriums(8) on loan repayments until 30 June 2021
Clients under moratorium (in thousands) As % of Countries Apr/21 May/21 Jun/21 Total clients India 0 0 226 31% Pakistan 0 0 0 0% Sri Lanka 1 0 11 20% The Philippines 0 0 0 0% Myanmar 60 56 0 0% Ghana 0 0 0 0% Nigeria 0 0 0 0% Sierra Leone 0 0 0 0% Kenya 0 0 0 0% Uganda 0 0 0 0% Tanzania 0 0 0 0% Rwanda 0 0 0 0% Zambia 0 0 0 0% Total 61 56 237 9.4% Moratorium amounts (USD thousands) Total June moratoriums since as % of As % of Countries Apr/21 May/21 Jun/21 Mar/20 OLP total moratoriums India 0 0 48,201 63,018 31% 55% Pakistan 0 0 0 0 0% 0% Sri Lanka 16 0 134 2,168 2% 2% The Philippines 0 0 0 26,404 0% 23% Myanmar 1,315 1,290 0 12,354 0% 11% Ghana 0 0 0 0 0% 0% Nigeria 0 0 0 957 0% 1% Sierra Leone 0 0 0 50 0% 0% Kenya 0 0 0 4,830 0% 4% Uganda 0 0 0 4,857 0% 4% Tanzania 0 0 0 266 0% 0% Rwanda 0 0 0 578 0% 1% Zambia 0 0 0 0 0% 0% Total 1,331 1,290 48,334 115,482 10.5% 100.0%
(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 primarily to approximately 30% of the clients in India, who were offered to benefit from the one-time debt restructuring scheme established by the RBI. See RBI COVID-19 Restructuring Guidelines .
-- Moratoriums granted in Sri Lanka were due to disruption in operations following national lockdowns.
-- The moratorium amount across the Group was USD 48.3m, which represents 10.5 % of the Group's Gross OLP.
Key events in June 2021
-- In India, RBI released a Consultative Document on Regulation of Microfinance on 14 June 2021. RBI proposes a harmonisation of regulations for all entities operating in the microfinance sector. If adopted, the new regulations would create the same operating environment for NBFC-MFIs, Small Finance Banks, NBFC and Universal Banks operating in the microfinance sector. The Consultative Document proposes amongst others the removal of existing caps for NBFC-MFIs on the number of total lenders (two NBFC-MFIs, three in total), ticket sizes, tenures, and loan pricing (10% margin cap), which were up until now only applicable to NBFC-MFIs.
Please note that, while the Company's operational performance appears to gradually normalize in most countries except for India and Sri Lanka, the risk of additional challenges to our operations should not be underestimated due to (i) the still relatively high infection rates, (ii) the current lack of available vaccines in most of our operating countries, (iii) the risk of the introduction of more infectious COVID-19 variants in our operating countries as have been observed in the United Kingdom, South Africa, Brazil, the Philippines and India, and (iv) the associated disruption this may cause to the businesses of our clients.
---
Enquiries:
ASA International Group plc
Investor Relations +31 6 2030 0139
Véronique Schyns vschyns@asa-international.com
About ASA International Group plc
ASA International 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.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
END
UPDSFFFMUEFSESW
(END) Dow Jones Newswires
July 20, 2021 02:00 ET (06:00 GMT)
1 Year Asa Chart |
1 Month Asa Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions