Access Financial grows loan portfolio
Access Financial Services Limited grew its loans portfolio and maintained costs, which led the microfinancier to virtually double its net profit to $207 million for the September second quarter. Profit in the same period last year totalled $107 million.
The company's return on average equity (ROE), already one of the highest on the Jamaica Stock Exchange, jumped to 66 per cent from 48 per cent recorded the previous year. Comparatively, banks that hold the largest loan books garnered ROE under 20 per cent due in part to regulations and taxation.
Over six months, Access Financial earned net profit of $352.7 million compared with $220.6 million a year earlier.
"Our results continue to be driven by our continued focus on improving our product offerings to the business sector with specific emphasis on the small and medium-size entities (SMEs), and overall, improving financial inclusion in the micro sector," said chief executive officer Marcus James in a statement prefacing the financials.
The net loan portfolio continued to show robust growth, with an increase of $469 million, or 24 per cent, to $2.42 billion. This resulted in a positive movement of total assets to $2.77 billion, an increase of 17 per cent. The microfinancing outfit's liabilities decreased by $38 million, or three per cent, due to upward movement on loans.
Access Financial wrapped up September with a net value of $1.48 billion, up from $1.04 billion a year earlier.