Net profit surged to J$437.89 million, up 65%

Durrant Pate/Contributor

Jamaica-based micro lender Access Financial Services grew its profitability by 65 per cent during the 2021-2022 financial year to J$437.89 million, rounding out a successful year-over-year performance.

Pre-tax profit for the year ended March 2022 amounted to J$572.70 million for the period, relative to J$341.31 million recorded in 2021. For the fourth quarter in March 2022, profit before taxation registered a 26 per cent improvement to J$208.76 million over the J$165.25 million in 2021.

Access was levied taxes amounting to J$134.81 million, up from J$75.62 million booked in 2021. This translated to a net profit for the year of J$437.89 million, relative to the $265.69 million recorded in 2021. 

Net profit for the fourth quarter was J$173.15 million, up from the J$137.84 million booked in 2021. Total comprehensive income increased 45 per cent to J$497.73 million as compared with the 2021 posting of $343.49 million booked the same time last year.

Q4 big jump in comprehensive income

The total comprehensive income for the fourth quarter of 2021-2022 was J$272.20 million, up from J$138.84 million in 2021. The micro lender reported J$1.64 billion in total interest income, an eight per cent increase relative to the J$1.53 billion recorded in 2021.

Of this, Interest Income from Loans amounted to J$1.64 billion (2021: J$1.52 billion), while Interest Income from Securities totaled J$4.33 million (2021: J$6.01 million). Total Interest Income for the quarter amounted to J$422.17 million, eight per cent higher than the J$390.67 million recorded during the same period in 2021.

Interest Expense for the period totaled J$219.62 million, a 14 per cent decrease compared to the J$256.83 million booked in 2021. This resulted in Access Financial recording a Net Interest Income of J$1.42 billion for the period, 12 per cent greater than the $1.27 billion booked in 2021.

Money Services operations

Access Financial reported income from Money Services fees of J$1.20 million (2021: J$935,000) and other income of J$141.63 million (2021: J$149.32 million). Foreign Exchange loss of J$4.65 million was reported this period relative to a loss of J$12.85 million booked same time last year.

As such, Other Operating Income for the period totaled $138.18 million compared to $137.41 million recorded in 2021.

Operating Expenses for the period amounted to J$1.41 billion (2021: J$1.48 billion). Of this:

• Staff Costs totaled J$690.36 million (2021: J$670.51 million)
• Allowance for Credit Losses amounted to J$144.69 million (2021: J$294.99 million).
• Depreciation & Amortization amounted to J$117.39 million (2021: J$118.35 million)
• Other Operating Expenses booked for the period totaled J$453.36 million (2021: J$393.90 million).

As at March 31, 2022, Access Financial assets totaled J$5.68 billion, up three per cent from J$5.49 billion in 2021. This increase was largely attributable to ‘Loans & Advances’ which amounted to approximately J$4.51 billion, 10 per cent more than the J$4.09 billion recorded in 2021.

Shareholder’s equity as at March 31, 2022 stood at J$2.80 billion (2021: J$2.45 billion), resulting in book value per share of approximately J$10.19 (2021: J$8.93).