Fri | Aug 12, 2022

Access Financial loan portfolio rebounds to record levels

Published:Wednesday | June 29, 2022 | 12:07 AM

Microfinancing company Access Financial Services Limited increased its loan portfolio by double-digit levels towards record amounts in the year ending March, reflecting a return to normality.

Its net loans grew 10 per cent to $4.51 billion, saying it was “primarily due to increased disbursements as the operating environment returns to normalcy, and the economy continues to recover from the impact of COVID-19”.

The out-turn beats the high of $4.47 billion in 2019.

During the year, the microlender wrote off loans and receivables amounting to $138.5 million, up from $93.4 million a year earlier. But the figure was lower than the $210 million of impaired write-offs in 2020.

During the year, Access Financial generated profit of $438 million, outperforming FY2021 by two-thirds, due to a nine per cent spike in revenue to $1.98 billion. The growth in revenue was attributable to growth in net interest margins and improved recoveries on bad debts, the company stated.

The profit in FY2022 fell just shy of the $446 million in 2019, prior to the onset of the pandemic, and trails the company’s decade-high earnings of $716 million in 2018.

steven.jackson@gleanerjm.com