A rebounding Access is IC buy rated

Profit surged 216 percent after tax, to $90 million for the micro lender,  Access Financial Services in the second quarter to September this year, from $29 million in 2020, with pretax profit spiking 287 percent from $33 million to $129 million, as the company’s turnaround continues to gather pace from the depressed 2020 pandemic effects.
For the six months to September, profit after tax jumped 192 percent to $180 million from just $62 million for the similar period in 2020, while profit before tax jumped 192 percent to $241 million from $82 million.
Net operating income rose 9.4 percent from $887.5 million to $971 million for the six months and $457 million to $507 million for the September quarter.
The most important contributor to income, loan interest, rose 13.5 percent for the quarter to $419 million from $369 million in 2020 and rose 8.7 percent from $743 million to $807 million for the 2021 half year.
Operating expenses for the period fell 9 percent to $730 million, from $805 million in the prior year and from $424 million in the September quarter this year to $$378 million. The reduction partially helped from loan loss provision declining from $111 million in September 2020 quarter to $60 million this year and decreased 32 percent for the six months to $121 million from $178 million. In addition, loans written off fell to $58 million for the half year from $69 million in 2020 and at the end of June, loans written off was just $10 million compared to $39 million in 2020 for the similar period.
Earnings per share for the six months was 65 cents compared to 22 cents for the prior year and 33 cents for the quarter.

Access Financial Services head office.

ICInsider.com projects earnings per share of $2.40 for the current year and $4.80 for 2023, assuming that lending continues to grow in double digits per annum. The projection in earnings is one reason for the IC Buy RatedICTOP10 Dolphin Cove jumps 25% label others are good management, the provision of service in demand and good medium term growth prospects.
Loans rose from $3.89 billion to $4.38 billion year over year and are up 6 percent in the September quarter over June this year, representing a nearly 25 percent annual increase. Cash funds slipped from $683 million at the end of September 2020 to $397 million. Loans payable amounts to $2.54 billion from $2.7 billion at the end of September 2020. Stockholders’ Equity stands at $2.56 billion. Access will be paying a dividend of 10 cents per share on November 26, 2021, adding to a similar amount paid in August, 20 cents in July and 10 cents in February.

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