Marginal improvement in latest financials for June
Micro loan specialist, ISP Finance Services Limited has entered into loan purchase agreement to acquire existing loans from an undisclosed entity.
In a brief advisory to the Jamaica Stock Exchange, where its shares are traded, ISP reports that this loan purchase agreement gives it the right to purchase select existing loans from a medium-sized loan portfolio. The agreement is subject to closing conditions which will determine the overall size of the acquisition.
The management expects closing of the deal to occur before the end of this quarter and for the transaction to be effected. ISP Finance results for the six months ended June 30, 2021, showed total interest income going up to J$204.23 million compared to J$177.78 million in 2020, an increase of 15 per cent.
For the June quarter, total interest income amounted to J$114.13 million coming from 92.13 million in 2020. Total Interest Income for the six months ended June 30, 2021 was broken down as follows:
- Interest Income from Loans grew by 15% to total $204.23 million relative to $177.78 million reported in the same period of 2020.
- Interest Income Receivables amounted to $379 (2020: $84) for the period under review.
- Interest Expense totalled $15.39 million relative to $14.88 million in 2020; this represents a three per cent increase year over year.
As a result, net interest income increased by 16 per cent to total $188.84 million (2020: $162.90 million). Net Interest Income for the quarter increased 27 per cent to total $106.50 million (2020: $84.16 million).
Commission expense fell by 13 per cent to $3.10 million (2020: $3.56 million). Foreign Exchange Loss totaled $108,742 relative to a loss of $97,313 booked in 2020. Service fee amounted to $138,000 for the period under review.