ASA International Group plc reported a 70% jump in first-half profit to $45.6 million, driven by operational leverage and the conclusion of its India business, as the microfinance lender continued to expand across Africa and Asia.
Underlying net profit, excluding exceptional items, rose 42% to $34.3 million, the company said in results presented on September 9, 2026. Total operating income grew 32% to $155.9 million, while net interest income increased 25% to $139.2 million. The cost-income ratio improved to 55.6% from 56.4% a year earlier, continuing a trajectory that has seen it fall from 72.1% in 2023.
Revenue has outpaced costs by 34 percentage points since 2023, management noted, citing a streamlined branch network following the India exit. Gross outstanding loan portfolio grew 18% to $599.6 million, or 24% at constant currency. The client base expanded 11% year-over-year to 2.725 million, excluding India.
India’s contribution effectively disappeared from the half-year results. The Reserve Bank of India approved the voluntary surrender of ASA’s NBFC-MFI license, and the loan portfolio there dropped to $4.3 million from $30.8 million six months earlier. An $11.4 million one-off gain on India non-convertible debentures contributed to a 150% surge in other operating income to $16.7 million.
Portfolio quality remained within management’s stated targets. Group-wide portfolio at risk over 30 days (PAR>30) increased to 2.4% from 2.0% in June 2025. East Africa saw its gross OLP grow 29% to $208.8 million, though PAR>30 rose to 2.9% from 1.3%. West Africa’s portfolio reached $163.1 million with PAR>30 at 2.0%, while South Asia recorded the lowest delinquency rate at 0.7% despite a 42% reported portfolio expansion to $146.6 million. Southeast Asia’s PAR>30 climbed to 4.9% as the region’s reported portfolio contracted 12%.
Total equity rose 19% to $192.6 million as of June 30, bringing return on average equity to 55.5%. Total funding stood at $751.8 million, with 99.8% denominated or hedged in local currency. Total assets reached $844.3 million.
The company declared an interim dividend of $0.069 per share, a 43% increase, maintaining a payout policy of 20% of underlying H1 net profit. Effective tax rate improved to 31.5%, though management guided for a rise to 40–42% in the second half due to higher dividend withholding taxes.
Full-year 2026 underlying net profit is expected to align with company-compiled consensus of $70.2 million. Several markets are in various stages of digital transformation: Ghana migrated to Temenos core banking in October 2025 with a client app rollout planned for Q4 2026, Tanzania completed its CBS migration in March 2026, and Kenya’s transformation is ramping up ahead of a planned market entry into the Democratic Republic of Congo in early 2027.
