TIDMASAI
RNS Number : 6471F
ASA International Group PLC
18 November 2020
ASA International Group plc October 2020 business update
Amsterdam, 18 November 2020 - 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 31 October 2020.
-- The immediate health impact of COVID-19 on the Company's operations remains low.
-- Liquidity continues to remain high with approximately USD
112m of unrestricted cash and cash equivalents across the Group on
31 October 2020.
-- The pipeline of funding deals under negotiation totalled approximately USD 183.5m.
-- Collection efficiency remained high with 8 out of 13
operating countries showing percentage rates in the mid to high
nineties.
-- Kenya and Uganda significantly improved collections reaching 91% and 78%, respectively.
-- The Philippines continued to struggle with collections
reducing from 74% to 69% as result of the imposition by the
government of a 60-days grace period for the repayment of loan
instalments until the end of December which many clients availed,
the ongoing disruption caused by limited, regional lockdowns in
certain parts of the country as well as the three major typhoons
which hit the Philippines in quick succession recently.
-- Collections also were adversely affected by the institution
of regional lockdowns affecting 56 branches in Myanmar and the
temporary suspension of operations in up to 50 branches in Sri
Lanka due to a rapid increase in COVID-19 infections.
-- Disbursements as percentage of collections exceeded 100% in
many countries with the exception of India, Myanmar, the
Philippines, Uganda, Rwanda and Zambia.
-- As a result, the number of clients and Gross OLP continued to
gradually increase reaching approximately 2.3m and USD 428m,
respectively, across the Group.
-- The Moratoriums granted for October amounted to USD 7.1m and
primarily stemmed from (i) the 60-day grace period for the
repayment of loan instalments in the Philippines, (ii) the regional
lockdowns for up to two months in Myanmar, and (iii) the temporary
suspension of operations in Sri Lanka.
Health impact of COVID-19 on our communities
-- The immediate health impact of COVID-19 on the Company's
operations remain ed low with 81 of our over 12,500 staff members
confirmed as infected , but with no deaths . The number of
confirmed infections amongst our 2.3m clients increased from 419 at
end of September to 1,192 as at 31 October 2020, resulting in 21
deaths.
Funding
-- Unrestricted cash and cash equivalents remained high at approximately USD 112m.
-- The Company secured approximately USD 22.7m of new loans from
local and international lenders in October 2020.
-- The majority of the Company's USD 183.5 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 31 October 2020 (1)
Country 01-07 08-14 15-22 23-29 30 Aug-05 06-12 13-19 20-30 01-15 16-31
Aug Aug Aug Aug Sep Sep Sep Sep Oct Oct
------ ------ ------ ------ ---------- ------ ------ ------ ------
India 41% 49% 53% 58% 60% 68% 78% 74% 77% 76%
Pakistan 96% 96% 96% 94% 96% 96% 96% 97% 97% 97%
Sri Lanka 93% 92% 95% 95% 94% 91% 96% 99% 90% 83%
Myanmar 96% 96% 97% 97% 95% 93% 91% 78% 65% 75%
The Philippines 70% 65% 65% 67% 67% 68% 69% 74% 65% 68%
Ghana 101% 100% 99% 99% 99% 99% 99% 100% 99% 100%
Nigeria 90% 94% 90% 90% 91% 91% 91% 93% 93% 94%
Sierra Leone 94% 96% 96% 97% 94% 97% 96% 99% 99% 99%
Kenya 69% 73% 70% 74% 76% 76% 77% 81% 84% 91%
Tanzania 100% 98% 98% 98% 98% 98% 99% 99% 99% 99%
Uganda 57% 63% 63% 63% 65% 67% 72% 73% 72% 78%
Rwanda 88% 89% 86% 82% 85% 84% 88% 87% 86% 91%
Zambia 99% 99% 99% 99% 100% 100% 100% 100% 99% 99%
----------------- ------ ------ ------ ------ ---------- ------ ------ ------ ------ ------
(1) Collection efficiency refers to actual collections from
clients divided by expected collections for the period; since
any moratorium on the repayment of loans are only granted to
clients after the end of the month, the collection efficiency
is not affected by the grant of such moratorium;
-- Collection efficiency across the Group remained high with 8
out of 13 operating countries showing percentage rates in the mid
to high nineties.
-- Kenya and Uganda significantly improved collections reaching 91% and 78%, respectively.
-- The government imposed a 60-day grace period for the
repayment of loans adversely affected collections in the
Philippines.
-- Collections were also affected by the institution of a
temporary lockdowns in Yangon and parts of Bago Division in Myanmar
and the partial suspension of operations in Sri Lanka due to
increased COVID-19 infections.
Disbursements vs collections of loans until 31 October 2020
(2)
-- With the business environment gradually improving in many
countries, disbursements of fresh loans continued to increase in
amount and as a percentage of weekly collections in many countries
in October.
Country 01-07 08-14 15-22 23-29 30 Aug-05 06-12 13-19 20-30 01-15 16-31
Aug Aug Aug Aug Sep Sep Sep Sep Oct Oct
------ ------ ------ ------ ---------- ------ ------ ------ ------
India 54% 70% 78% 74% 75% 79% 78% 91% 91% 68%
Pakistan 72% 85% 90% 91% 95% 89% 93% 99% 99% 99%
Sri Lanka 8% 74% 128% 145% 64% 118% 122% 144% 17% 135%
Myanmar 73% 101% 114% 122% 97% 104% 103% 63% 24% 44%
The Philippines 57% 51% 70% 79% 77% 80% 90% 111% 74% 96%
Ghana 120% 120% 112% 117% 113% 115% 123% 119% 116% 95%
Nigeria 67% 96% 104% 104% 87% 115% 129% 139% 152% 136%
Sierra Leone 110% 131% 139% 97% 105% 117% 115% 123% 123% 116%
Kenya 85% 87% 99% 101% 93% 95% 101% 108% 92% 103%
Tanzania 104% 121% 116% 112% 97% 107% 111% 119% 101% 106%
Uganda 42% 75% 78% 69% 65% 68% 69% 66% 88% 95%
Rwanda 88% 93% 79% 87% 81% 79% 84% 81% 83% 87%
Zambia 136% 184% 181% 188% 129% 178% 151% 85% 93% 86%
----------------- ------ ------ ------ ------ ---------- ------ ------ ------ ------ ------
(2) Disbursements vs collections refers to actual loan disbursements
made to clients divided by total loans collected from clients in
the period
Development of Clients and Outstanding Loan Portfolio
-- With disbursements gradually increasing in many operating
countries , Gross OLP (3) increased to USD 428m (up 1%) in October
2020 compared to the previous month.
Gross OLP (in
Clients (in thousands) Delta USDm) Delta
-------------------------
Dec-Oct Dec-Oct Sep-Oct
Countries Dec/19 Sep/20 Oct/20 Dec-Oct Sep-Oct Dec/19 Sep/20 Oct/20 USD CC USD
India 732 709 713 -3% 1% 183.0 168.3 166.3 -9% -5% -1%
Pakistan 439 417 409 -7% -2% 62.9 54.4 58.4 -7% -4% 7%
Sri Lanka 63 57 56 -11% -1% 10.1 9.1 9.0 -11% -10% -1%
Myanmar 152 134 128 -16% -4% 31.7 31.9 30.4 -4% -17% -5%
The
Philippines 340 262 278 -18% 6% 53.2 47.0 47.2 -11% -15% 0%
Ghana 165 145 151 -9% 4% 41.7 39.8 40.6 -3% 0% 2%
Nigeria 260 222 228 -12% 3% 33.5 25.4 28.1 -16% -12% 11%
Sierra
Leone 34 32 35 3% 8% 2.9 3.9 4.2 45% 46% 8%
Kenya 101 81 86 -15% 5% 17.7 12.5 12.8 -28% -22% 2%
Tanzania 123 104 108 -12% 4% 20.5 19.3 20.5 0% 1% 6%
Uganda 101 83 81 -20% -2% 10.4 7.7 7.9 -24% -23% 3%
Rwanda 21 19 19 -11% 0% 3.0 2.6 2.6 -14% -11% -1%
Zambia 2 4 5 146% 14% 0.2 0.4 0.4 116% 216% -3%
Total 2,533 2,269 2,297 -9% 1% 471 422 428 -12% -7% 1%
(3) Loan portfolio including the off-book BC and DA model,
excluding interest receivable and before deducting the ECL
provision and modification loss
Selected moratorium (4) on loan repayments
As %
Clients under moratorium of
Total
Countries Mar Apr May Jun Jul Aug Sep Oct Clients
India 0 0 0 182,318 181,878 165,618 0 0 0%
Pakistan 0 0 0 0 0 0 0 0 0%
Sri Lanka 0 0 0 37,891 9,002 78 116 23,430 42%
Myanmar 2,307 2,101 35,056 12,394 7,876 15,308 32,118 64,501 50%
The Philippines 1,297 0 57,130 145,086 65,405 59,626 100,427 95,241 34%
Ghana 0 0 0 0 0 0 0 0 0%
Nigeria 0 0 4,042 10,523 9,763 0 0 0 0%
Sierra Leone 0 91 1,225 1,336 1,178 0 0 0 0%
Kenya 20,453 17,366 9,660 7,778 26,697 0 0 0 0%
Tanzania 0 194 5,323 4,162 0 0 0 0 0%
Uganda 8,269 0 0 75,360 59,563 49,897 3,557 0 0%
Rwanda 436 0 7,746 7,886 4,703 2,800 0 0 0%
Zambia 0 0 0 0 0 0 0 0 0%
Total 32,762 19,752 120,182 484,734 366,065 293,327 136,218 183,172 8.0%
October
Moratorium amounts (in USD thousands) moratoriums
---------------------------------------------------------------------
As % of
as % of Total
Countries Mar Apr May Jun Jul Aug Sep Oct Total OLP Moratoriums
India 0 0 0 5,831 5,332 3,633 0 0 14,796 0% 28%
Pakistan 0 0 0 0 0 0 0 0 0 0% 0%
Sri Lanka 0 0 0 1,160 250 2 24 264 1,699 3% 3%
Myanmar 42 43 732 347 253 408 877 1,973 4,677 6% 9%
The Philippines 16 0 927 6,247 2,110 2,253 3,928 4,902 20,382 10% 39%
Ghana 0 0 0 0 0 0 0 0 0 0% 0%
Nigeria 0 0 137 465 431 0 0 0 1,033 0% 2%
Sierra
Leone 0 1 10 19 21 0 0 0 51 0% 0%
Kenya 675 432 2,146 730 807 0 0 0 4,790 0% 9%
Tanzania 0 5 147 115 0 0 0 0 266 0% 1%
Uganda 76 0 0 1,698 1,536 1,156 155 0 4,620 0% 9%
Rwanda 5 0 161 218 125 75 0 0 584 0% 1%
Zambia 0 0 0 0 0 0 0 0 0 0% 0%
Total 813 482 4,260 16,831 10,863 7,528 4,984 7,139 52,900 1.7% 100.0%
(4) Moratoriums relate to clients who have received an extension
for the payment of one or more loan instalments during the
month.
-- In October 2020, the moratorium on loan repayments granted to
clients amounted to USD 7.1m, which represents 1.7 % of the Group's
Gross OLP.
-- Moratoriums were granted to clients in the Philippines, Myanmar and Sri Lanka.
-- In the Philippines, the new government directive for
financial institutions to offer clients a 60-day grace period for
the payment of loan instalments was availed by many clients. The
country also experienced three major typhoons hitting Luzon Island
in recent weeks, which caused substantial disruption to our
clients' businesses on top of the existing disruption already
caused by COVID-19.
-- In Myanmar, the institution of regional lockdowns caused the
temporary closure of 56 branches in Yangon and parts of Bago Region
for a period of up to two months.
-- Due to the rapidly increasing number of COVID-19 infections
in Sri Lanka, operations were temporarily suspended in more than 50
branches.
Enquiries:
ASA International Group plc
Investor Relations +31 6 2030 0139
Véronique Schyns vschyns@asa-international.com
About ASA International Group plc
ASA International 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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