TIDMASAI
RNS Number : 5096F
ASA International Group PLC
22 March 2022
Press release
ASA International Group plc February 2022 business update
Amsterdam, The Netherlands, 22 March 2022 - ASA International,
('ASA International', the 'Company' or the 'Group'), one of the
world's largest international microfinance institutions, today
provides the following update of the impact of Covid-19 on its
business operations as at 28 February 2022.
-- Liquidity remains high with approximately USD 103m of
unrestricted cash and cash equivalents across the Group.
-- The pipeline of funding deals under negotiation totalled approximately USD 211m.
-- With the exception of India and Myanmar, all other operating
subsidiaries continued to achieve collection efficiency of more
than 90% and 9 countries achieved more than 95%.
-- India collections remained at 76%, due to the substantial
overdue collections and moratoriums provided to clients. Collection
efficiency, excluding instalments due from clients receiving the
one-time loan restructuring offered by the Reserve Bank of India
('RBI'), increased to 102%.
-- Collections in Myanmar decreased to 72%, due to the ongoing
conflict and an internet and electricity outage in the conflict
affected areas.
-- T he benchmark PAR>30 for the Group, including off-book
loans and excluding loans overdue more than 365 days, slightly
increased from 6.4% to 6.8%, primarily due to the end of the
moratoriums in Myanmar, and PAR>90 decreased from 4.0% to
3.5%.
-- The PAR>30 for the Group's operating subsidiaries,
excluding India and Myanmar, slightly increased from 1.8% to
1.9%.
-- Excluding all loans which have been overdue for more than 180
days and, as a result, have been fully provided for, PAR>30
increased from 3.8% to 4.6%.
-- Disbursements as percentage of collections exceeded 100% in 6
countries. The decreasing percentage in India was primarily due to
the strategic decision to reduce disbursements.
-- With the number of clients broadly stable at 2.4m (slightly
higher than in January and 2.9% lower than in February 2021), and
the continuing strategic focus in India on only collections , Gross
OLP decreased to USD 424m (0.2% lower than in January 2022 and 7%
lower than in February 2021).
-- The moratorium amount decreased to USD 23.8 m, and is
composed of the restructured loans of certain distressed clients in
India as per the RBI guidelines. No other operating subsidiary
granted moratoriums.
Health impact of COVID-19 on staff and clients
-- Since March 2020, the number of staff members confirmed as
infected by Covid increased to 549 of over 12,800 staff , with two
deaths . Confirmed infections amongst 2.4m clients increased to
22,791 from 21,659 in the previous month, resulting in 697 deaths
since the start of the pandemic. Of the 697 client deaths across
the Group, 451 took place in Myanmar, with no deaths occurring in
February 2022.
Funding
-- Unrestricted cash and cash equivalents remained high at approximately USD 103m.
-- The Company secured approximately USD 6m of new loans from
local and international lenders in February 2022.
-- The majority of the Company's USD 211m pipeline of future
wholesale loans are supported by (agreed) term sheets and/or draft
loan documentation. The terms and conditions of the remaining loans
are being negotiated with lenders.
Collection efficiency until 28 February 2022 (1)
Countries Sep/21 Oct/21 Nov/21 Dec/21 Jan/22 Feb/22
---------- ---------- ---------- --------- ---------
India 64% 70% 69% 74% 76% 76%
Pakistan 99% 99% 99% 99% 99% 100%
Sri Lanka Nil(2) 91% 92% 94% 93% 93%
The Philippines 96% 97% 97% 97% 98% 98%
Myanmar 55%(3) 68%(3) 75%(3) 78%(3) 78%(3) 72%(3)
Ghana 99% 100% 99% 99% 99% 99%
Nigeria 95% 96% 97% 96% 95% 96%
Sierra Leone 91% 93% 92% 92% 92% 92%
Kenya 100% 100% 100% 100% 99% 100%
Uganda 89% 94% 98% 100% 100% 100%
Tanzania 100% 100% 100% 100% 100% 100%
Rwanda 96% 97% 97% 97% 97% 97%
Zambia 100% 99% 99% 99% 100% 100%
----------------------- ---------- ---------- ---------- --------- --------- ---------
(1) Collection efficiency refers to actual collections from clients
divided by realizable collections for the period. It is calculated
as follows: the sum of actual regular collections, actual overdue collections
and actual advance payments divided by the sum of realizable regular
collections, actual overdue collections and actual advance payments.
Under this definition collection efficiency cannot exceed 100%.
(2) The collection efficiency for 1-29 September 2021 is nil due to
the lockdowns in Sri Lanka.
(3) Collections are impacted by the ongoing lockdowns and civil unrest
in some areas of our operations.
-- Collection efficiency across the Group increased or remained
broadly stable compared to the previous month in all countries
.
-- Collections in India remained at 76%, due to the substantial
overdue collections and moratoriums provided to clients. Collection
efficiency, excluding instalments due from clients receiving the
one-time loan restructuring, increased to 102%.
-- Collection efficiency in India, including regular and overdue
collections as well as advance payments, increased to 101% as a
percentage of the regular, realizable collections, including
advance payments. The substantial difference is due to the Group's
policy that any loan instalment paid is first credited against the
oldest outstanding amount overdue. This has an adverse impact on
India's monthly collection efficiency, which is further aggravated
by the relatively long duration of the loans disbursed in India.
This adjusted collection efficiency metric illustrates that most
clients in India continue to make payments on their loans due.
-- Collections in Myanmar decreased to 72%, due to the ongoing
conflict and an internet and electricity outage in the conflict
affected areas.
Loan portfolio quality up to and including February 2022 (5, 6,
7)
Gross OLP (in USDm) Non-overdue loans PAR>30 less PAR>180
------------------------------------- ------------------------- -------------------------
Dec/21 Jan/22 Feb/22 Dec/21 Jan/22 Feb/22 Dec/21 Jan/22 Feb/22
India
(total) 113 111 107 67.3% 68.8% 69.7% 12.3% 11.1% 10.2%
Pakistan 79 81 83 99.7% 99.7% 99.7% 0.2% 0.2% 0.2%
Sri Lanka 8 8 8 87.2% 85.3% 85.9% 3.6% 3.9% 4.1%
Philippines 47 46 47 95.7% 94.9% 95.7% 2.3% 2.0% 1.9%
Myanmar 20 21 21 97.8% 64.3% 58.5% 0.6% 1.0% 22.7%
Ghana 49 46 44 99.3% 99.2% 99.3% 0.2% 0.3% 0.2%
Nigeria 40 37 37 92.7% 90.9% 90.6% 2.8% 3.4% 3.6%
Sierra
Leone 7 7 7 87.4% 72.3% 71.1% 5.6% 6.5% 7.1%
Kenya 17 17 18 98.6% 98.6% 98.6% 0.5% 0.5% 0.6%
Uganda 10 10 10 89.8% 90.7% 91.7% 3.1% 1.9% 0.9%
Tanzania 35 36 37 99.1% 99.1% 99.1% 0.2% 0.2% 0.1%
Rwanda 3 3 3 92.9% 92.6% 92.4% 2.6% 3.0% 3.2%
Zambia 2 2 2 98.2% 98.2% 97.7% 0.5% 0.5% 0.8%
Group 429 425 424 89.1% 87.5% 87.7% 4.1% 3.8% 4.6%
PAR>30 PAR>90 PAR>180
------------------------------------- ------------------------- -------------------------
Dec/21 Jan/22 Feb/22 Dec/21 Jan/22 Feb/22 Dec/21 Jan/22 Feb/22
India
(total) 22.8% 19.3% 17.1% 14.1% 11.6% 9.9% 10.5% 8.2% 6.9%
Pakistan 0.2% 0.2% 0.2% 0.2% 0.2% 0.1% 0.0% 0.0% 0.0%
Sri Lanka 6.0% 6.6% 6.9% 4.0% 4.0% 4.3% 2.5% 2.8% 2.8%
Philippines 2.5% 2.5% 2.7% 1.5% 1.9% 2.0% 0.3% 0.6% 0.8%
Myanmar 1.1% 1.6% 23.3% 0.7% 1.0% 0.9% 0.5% 0.6% 0.5%
Ghana 0.3% 0.3% 0.3% 0.2% 0.2% 0.2% 0.1% 0.1% 0.1%
Nigeria 4.6% 5.4% 5.8% 3.1% 3.6% 3.8% 1.8% 2.0% 2.2%
Sierra
Leone 7.5% 8.7% 9.5% 4.0% 5.5% 6.2% 1.9% 2.2% 2.4%
Kenya 1.1% 1.0% 1.1% 0.8% 0.8% 0.8% 0.5% 0.5% 0.5%
Uganda 3.8% 2.9% 2.4% 3.4% 2.8% 2.3% 0.7% 0.9% 1.4%
Tanzania 0.5% 0.4% 0.4% 0.4% 0.4% 0.3% 0.3% 0.3% 0.3%
Rwanda 4.5% 4.8% 5.1% 3.2% 3.2% 3.3% 1.9% 1.8% 1.9%
Zambia 0.7% 0.8% 1.1% 0.5% 0.5% 0.5% 0.2% 0.2% 0.3%
Group 7.3% 6.4% 6.8% 4.6% 4.0% 3.5% 3.1% 2.6% 2.2%
(5) Gross OLP includes the off-book BC and DA model, excluding interest
receivable and before deducting ECL provisions and modification loss.
(6) PAR>x is the percentage of outstanding customer loans with at
least one instalment payment overdue x days, excluding loans more
than 365 days overdue, to Gross OLP including off-book loans. Loans
overdue more than 365 days now comprise 3% of the Gross OLP.
(7) The table "PAR>30 less PAR>180" shows the percentage of outstanding
client loans with a PAR greater than 30 days, less those loans which
have been fully provided for.
-- PAR>30 for the Group slightly increased to 6.8%, primarily
due to the portfolio deterioration in Myanmar as moratoriums were
no longer provided to clients with overdue loan payments.
-- PAR>30 for Sierra Leone increased to 9.5% due to the increased OLP/client.
-- Credit exposure of the India off-book BC portfolio of USD
33.7m is capped at 5%. The included off-book DA portfolio of USD
1.7m has no credit exposure.
Disbursements vs collections of loans until 28 February 2022
(8)
Countries Sep/21 Oct/21 Nov/21 Dec/21 Jan/22 Feb/22
--------- --------- --------- --------- ---------
India 52% 39% 85% 88% 78% 65%
Pakistan 100% 100% 98% 100% 100% 96%
Sri Lanka Nil(9) 86% 100% 113% 70% 115%
The Philippines 89% 90% 90% 81% 80% 93%
Myanmar 37% 73% 90% 95% 99% 99%
Ghana 120% 111% 114% 108% 74% 110%
Nigeria 110% 128% 134% 93% 71% 98%
Sierra Leone 124% 112% 112% 110% 97% 102%
Kenya 100% 96% 103% 55% 95% 101%
Uganda 109% 115% 121% 69% 81% 112%
Tanzania 100% 107% 109% 107% 114% 112%
Rwanda 102% 101% 105% 98% 65% 80%
Zambia 102% 110% 111% 109% 76% 80%
---------------------- --------- --------- --------- --------- --------- --------
(8) Disbursements vs collections refers to actual loan disbursements
made to clients divided by total amounts collected from clients in the
period.
(9) Disbursements vs collections for September is nil due the nationwide
lockdowns.
-- Disbursements as percentage of collections exceeded 100% in 6
countries. The decreasing percentage in India was primarily due to
the strategic decision to reduce disbursements.
Development of Clients and Outstanding Loan Portfolio until 28
February 2022
Gross OLP (in
Clients (in thousands) Delta USDm) Delta
Feb/21-Feb/22
Feb/21-Feb/22 CC Jan/22-Feb/22
Countries Feb/21 Jan/22 Feb/22 Feb/21-Feb/22 Jan/22-Feb/22 Feb/21 Jan/22 Feb/22 USD (10) USD
India 729 521 498 -32% -4% 166 111 107 -35% -34% -3%
Pakistan 432 520 530 23% 2% 69 81 83 20% 34% 2%
Sri Lanka 56 52 52 -7% 0% 9 8 8 -10% -7% 2%
The
Philippines 313 290 295 -6% 2% 50 46 47 -7% -2% 2%
Myanmar 128 112 111 -13% -1% 30 21 21 -30% -11% 1%
Ghana 154 158 161 4% 2% 44 46 44 -1% 16% -5%
Nigeria 256 246 245 -4% 0% 32 37 37 16% 27% -1%
Sierra Leone 38 43 43 12% -2% 5 7 7 38% 59% 0%
Kenya 99 118 120 22% 2% 14 17 18 27% 32% 4%
Uganda 81 92 93 15% 2% 8 10 10 29% 25% 2%
Tanzania 129 179 185 44% 4% 22 36 37 64% 64% 3%
Rwanda 18 18 18 -1% -1% 3 3 3 18% 22% -1%
Zambia 6 15 16 145% 3% 0.6 2 2 280% 210% 2%
Total 2,439 2,364 2,368 -2.9% 0.1% 453 425 424 -7% 1% -0.2%
(10) Constant currency ('CC') implies conversion of local
currency results to USD with the exchange rate from the beginning
of the period.
-- With the number of clients broadly stable at 2.4m, and the
continuing strategic focus in India on only collections , Gross OLP
decreased to USD 424m (0.2% lower than in January 2022 and 7% lower
than in February 2021).
Selected moratoriums (11) on loan repayments until 28 February
2022
Clients under moratorium (in
thousands)
As % of Total
Countries Dec/21 Jan/22 Feb/22 Clients
India 205 205 205 41%
Pakistan 0 0 0 0%
Sri Lanka 0 0 0 0%
The Philippines 0 0 0 0%
Myanmar 44 0 0 0%
Ghana 0 0 0 0%
Nigeria 0 0 0 0%
Sierra Leone 0 0 0 0%
Kenya 0 0 0 0%
Uganda 0 0 0 0%
Tanzania 0 0 0 0%
Rwanda 0 0 0 0%
Zambia 0 0 0 0%
Total 249 205 205 9%
Moratorium amounts (USD
thousands)
February
Moratoriums As % of Total
Countries Dec/21 Jan/22 Feb/22 as % of OLP Moratoriums
India 28,351 25,950 23,782 22% 100%
Pakistan 0 0 0 0% 0%
Sri Lanka 0 0 0 0% 0%
The Philippines 0 0 0 0% 0%
Myanmar 778 0 0 0% 0%
Ghana 0 0 0 0% 0%
Nigeria 0 0 0 0% 0%
Sierra Leone 0 0 0 0% 0%
Kenya 0 0 0 0% 0%
Uganda 0 0 0 0% 0%
Tanzania 0 0 0 0% 0%
Rwanda 0 0 0 0% 0%
Zambia 0 0 0 0% 0%
Total 29,129 25,950 23,782 6% 100%
(11) Moratoriums relate to clients who have received an
extension for the payment of one or more loan instalments during
the month.
-- Moratoriums on loan repayments relate primarily to
approximately 41% of clients in India, who accepted to benefit from
the one-time debt restructuring scheme established by the RBI and
confirmed in September 2021. See RBI Covid-19 Restructuring
Guidelines .
-- The moratorium amount across the Group decreased to USD
23.8m, which represents 6 % of the Group's Gross OLP.
Key events in March 2022
-- On 14 March 2022, the RBI announced new regulation for the
microfinance sector in India, applicable to all banks, NBFC-MFIs
and other participants in the microfinance sector. The Group's
preliminary assessment is that this is a positive development for
ASA India as it creates a level playing field in the microfinance
sector. The key changes include the removal of the interest rate
cap and margin cap, loans shall be collateral-free (also for banks
providing microfinance loans), and lenders will be restricted to
provide microfinance loans to clients up to a maximum of 50% of the
client's household income. See Reserve Bank of India -
Notifications (rbi.org.in)
-- Other than the existing partial lockdown and curfews in
Myanmar, the Company is not aware of any further restrictions
implemented in its operating countries as a result of the emergence
of the Omicron variant up until 17 March 2022.
Please note that, while the Company's operational performance
appears to gradually normalize in most countries except for India
and Myanmar, the risk of additional challenges to our operations
should not be underestimated, due to (i) the still relatively high
infection rates, (ii) the current lack of available vaccines as
well as vaccine hesitancy in most of our operating countries, (iii)
the risk of the introduction of more infectious Covid variants in
our operating countries, and (iv) the associated disruption this
may cause to the businesses of our clients.
---
Enquiries:
ASA International Group plc
Investor Relations +31 6 2030 0139
Véronique Schyns vschyns@asa-international.com
About ASA International Group plc
ASA International Group plc (ASAI: LN) is one of the world's
largest international microfinance institutions, with a strong
commitment to financial inclusion and socioeconomic progress. The
company provides small, socially responsible loans to low-income,
financially underserved entrepreneurs, predominantly women, across
South Asia, South East Asia, West and East Africa.
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