ASA International posts 70% profit jump on loan growth

ASA International Group (LON:ASAI) delivered a sharp increase in first-half profitability, with reported net profit rising 70% year over year to $45.6 million. CEO Rob Keijsers attributed the surge to strong portfolio expansion, noting that underlying net profit, which excludes one-off items related to the India exit, grew 42% to $34.3 million. The company also declared an interim dividend of $0.069 per share, a 43% increase over the prior year, reflecting confidence in its adjusted earnings power.

The group’s balance sheet expanded significantly, with the outstanding loan portfolio reaching $600 million, up 18% on a reported basis and 24% at constant currency. The client base surpassed 2.7 million, marking an 11% increase compared to the same period in 2025. According to the earnings call covered by GN markets, these figures now exclude Indian operations, providing a clearer view of the company’s continuing international footprint.

Regional growth drives portfolio expansion

East Africa remains the primary growth engine, contributing 29% loan portfolio growth led by Kenya and Uganda. West Africa posted 7% growth, driven by demand in Nigeria, though performance was partially offset by cedi depreciation in Ghana. In South Asia, the portfolio was reduced to $4.3 million as the company completed its exit from India, but the remaining operations in Pakistan drove a 42% increase in the regional book.

Southeast Asia showed 13% constant-currency growth, although reported figures were impacted by exchange rate differences in Myanmar. The company cited structural changes in its reporting to better reflect these currency effects. Overall, the mix of growth across these regions has supported the 18% reported increase in the total loan book, positioning the group for continued volume gains.

Credit quality stabilizes amid local challenges

Portfolio quality metrics remain low, with the group’s PAR 30 ratio increasing slightly to 2.4%. This marginal rise is attributed to specific regional headwinds rather than systemic credit deterioration. In Uganda, new trade regulations disrupted operations for informal traders, leading to higher arrears as clients rebuilt their businesses. Ghana also saw increased delays linked to rainy season flooding, impacting repayment schedules.

The Philippines, where the business is currently undergoing restructuring, contributed to higher arrears in Southeast Asia. Despite these localized issues, management maintains that the overall credit risk profile is stable. The slight uptick in non-performing loans is viewed as a manageable consequence of external regulatory and environmental factors rather than a shift in the company’s underwriting standards.

Strategic expansion and digital investment

ASA International is proceeding with a planned entry into the Democratic Republic of Congo early next year, initially through a limited branch network. This move follows the effective completion of its India exit, allowing the company to redirect capital and management focus toward its core African and Asian markets. The firm continues to invest in digital systems, deposits, and new product offerings to support operational efficiency.

The company expects full-year underlying profit to meet or slightly exceed the $70.2 million consensus estimate. This guidance is underpinned by the ongoing investment in technology and the expansion of its client base. By maintaining a focus on digital infrastructure and selective geographic expansion, ASA International aims to sustain its growth trajectory while managing credit risks in emerging markets.