Durrant Pate/Contributor

Micro-financer ISP Finance Services Limited has expanded its business by acquiring the loan portfolio of an undisclosed financial entity. 

ISP has confirmed the acquisition of the loan portfolio comprising unsecured personal loans having an aggregate principal balance totalling $1.2 billion. The company provided no further details on the matter but the acquisition comes as a big boost for the junior market listed company, which reported a dismal fourth quarter, ended December 31, 2024.

Interest income declined by $25.3 million or 18.2%, moving from $139.2 million to $113.86 million. Net operating income after interest and commissions totalled $95.6 million down from the $119.9 reported for the same period last year.

Net profit closed on $1.54 million, down from $30.1 million or 95.1% decline. This dismal performance is indicative of the lingering effects of Hurricane Beryl on July 3, 2024.  

Hurricane Beryl and marketing competition 

According to the management, “The company continues to experience the after-effects of Hurricane Beryl in Q4 having a lingering negative impact on loan demand impacting loan disbursements during the quarter. Increased competition in the market has heightened pressure on loan spreads and an increasing number of requests from customers for interest rate reductions.”

ISP Finance says it continues to exercise caution in discerning loan quality in attempting to grow the loan book organically while exploring other opportunities for loan growth. At the same time, the micro-financer continues to manage its operating costs tightly given the pressure of lower interest rates and lower loan demand while continuing to be prudent in its loan loss provisions.

Earnings per share stood at $0.012 at the end of the fourth quarter, down from $0.252 or a 95.1% decline from December 2023. Total assets went up to $1.273 billion year-over-year, representing an improvement of 12.8%.