ASA International Group Reports Doubled Profits and Strong Growth in FY 2025

ASA International FY 2025 results: profits doubled, loan book up 33%, dividend raised

ASA International Group plc has delivered a punchy set of FY 2025 numbers. Net profit almost doubled to USD 56.5m, underlying net profit rose 94% to USD 57.2m, and the loan book scaled fast – Gross Outstanding Loan Portfolio (Gross OLP) climbed 33% year-on-year to USD 611.0m. Returns were eye-catching too, with return on average equity at 43.8%.

Quality held firm while the business scaled. Portfolio at risk over 30 days (PAR>30) – the share of loans over 30 days late – improved to 1.8%. The board is sharing the spoils with investors, recommending a total dividend of USD 0.143 per share for 2025, keeping the 25% payout ratio intact.

Key numbers at a glance

Net profit	USD 56.5m (FY 2024: USD 28.5m)
Underlying net profit	USD 57.2m (up 94%)
Return on average equity	43.8% (FY 2024: 33.0%)
Gross OLP	USD 611.0m (up 33%)
PAR>30	1.8% (FY 2024: 2.2%)
Cost-income ratio	56.8% (FY 2024: 61.4%)
Total equity	USD 161.8m (up 68%)
Total funding	USD 710.9m (FY 2024: USD 499.3m)
Funding pipeline (2026)	USD 261.6m
Dividend per share (FY 2025)	USD 0.143 (interim USD 0.048; final USD 0.095)
Clients / Branches	2.8m clients; 2,232 branches
Net interest margin	39.3% (FY 2024: 35.2%)

What powered the surge in FY 2025

The growth engine fired across multiple markets. Ghana was the standout, benefiting from strong operational growth and a 29% appreciation of the Ghanaian cedi, while Pakistan, Uganda, Tanzania and Kenya also delivered. Gross OLP per client rose to USD 220 (from USD 182), reflecting a strategy to meet more of clients’ working capital needs.

Margins improved as net interest income jumped 43% to USD 244.4m and the net interest margin rose to 39.3%. Efficiency was better too, with clients per loan officer up to 308 (from 292) and the cost-income ratio down 4.6 percentage points to 56.8%.

Portfolio quality: resilient and improving

Credit performance held up well during rapid growth. Group PAR>30 improved to 1.8% (FY 2024: 2.2%), with Pakistan, Uganda and Kenya all below 0.5%. Expected credit loss (ECL) reserves fell to USD 9.2m (from USD 11.8m), driven by better portfolio quality.

• West Africa PAR>30 improved to 1.3% despite big growth in Ghana and Nigeria.
• East Africa PAR>30 was 1.6%, with Uganda steady at 0.2% and Kenya at 0.3%.
• South East Asia PAR>30 was steady at 4.8%; Myanmar’s reported figures were affected by a change in FX translation methodology.

Accounting notes matter this year. Hyperinflation accounting (IAS 29) for Ghana and Sierra Leone added a net USD 2.5m to profit, while a change in FX translation for Myanmar (IAS 21 on lack of exchangeability) reduced reported OLP there despite operational resilience. Impairments linked to India were USD 3.1m as the Group progresses its planned deconsolidation of India by end-2026.

Funding, liquidity and dividends: built for continued growth

ASA strengthened its balance sheet and funding mix. Total equity rose 68% to USD 161.8m, helped by profit growth and a USD 15.9m boost in the FX translation reserve. Total funding increased to USD 710.9m, with a healthy push into local currency borrowing across Pakistan, Tanzania, Ghana, Kenya and Uganda. The cost of funding was stable at 11.4%.

• Client deposits increased 52% to USD 136.7m, driven by higher security deposits and voluntary savings.
• Cash at bank and in hand was USD 107.4m, of which USD 79.0m was unrestricted.
• Net debt at holding companies fell to USD 45.2m (from USD 62.9m) as subsidiaries upstreamed more dividends.
• 2026 funding pipeline of USD 261.6m is in place, with c.93% on agreed terms.

The board proposes a final dividend of USD 0.095 per share, taking the FY 2025 total to USD 0.143 and maintaining the 25% payout ratio on underlying net profit. That is a clear signal of confidence, alongside discipline on capital.

Digital rollout and new products: foundations for scale

Digital transformation took a big step forward. Ghana migrated to Temenos Transact (T24) and launched new digital apps for loan officers (client app rolling out in early 2026). Tanzania followed in March 2026. Kenya is next, with preparation for Nigeria and Uganda in 2027. The thesis is simple: a modern core plus digital client journeys should enhance resilience, productivity and growth capacity.

On product, ASA launched microinsurance (ASA LifeCare) in partnership across Uganda, Kenya and Nigeria, with plans to cover all African markets. Priced from USD 0.30 per month, it embeds protection in the loan product and is expected to support retention and add non-interest income. A micro-SME lending proposition, bridging classic microfinance and bank thresholds around USD 5,000, will be piloted in Uganda in H1 2026.

Regional standouts and watch‑outs

• West Africa: Net profit more than doubled to USD 38.7m. Ghana led with OLP up 110% to USD 141.9m and PAR>30 at 0.9%. Nigeria’s quality improved, with PAR>30 down to 2.8%.
• East Africa: Strong growth with Gross OLP up 37% to USD 203.5m; net profit rose 37% to USD 21.0m. Kenya and Uganda were particularly strong; Kenya secured a Digital Credit Provider licence in December 2025.
• South Asia (ex‑India): Net profit rose 54% to USD 15.0m, led by Pakistan; including India, regional net profit was USD 10.1m.
• South East Asia: Reported OLP dipped to USD 82.5m due to IAS 21 translation in Myanmar; net profit was USD 4.8m. The Philippines grew clients despite cyclone disruption.

My take: why this matters for investors

This is the cleanest growth story ASA has put up for years: faster loan book expansion, fatter margins, better cost discipline and solid credit quality. The equity base is much stronger, the funding mix is tilting local, and the dividend is rising in line with a consistent 25% payout policy. The digital rollout is a genuine catalyst for productivity and client experience in 2026‑27.

Risks remain. Currency moves helped in 2025 – particularly the Ghanaian cedi – but can cut both ways. Hyperinflation and FX translation adjustments (IAS 29/IAS 21) add noise. India’s deconsolidation is still in flight, and there are modest covenant breaches (USD 5.4m) largely waived to date. The board also flags macro uncertainty linked to the Middle East conflict. Even so, with PAR>30 at 1.8%, a USD 261.6m funding pipeline and improving operating leverage, the setup for 2026 looks constructive.

Dates to note for FY 2026

• Q1 2026 Business Update: 30 April 2026
• Dividend record date: 8 May 2026
• AGM: 3 June 2026
• Dividend payment date: 8 June 2026
• Q2 2026 Business Update: 30 July 2026
• 2026 Interim Results: 9 September 2026
• Q3 2026 Business Update: 29 October 2026

Jargon buster

• PAR>30: Percentage of loans with at least one instalment over 30 days late – a key credit quality indicator.
• Gross OLP: Gross Outstanding Loan Portfolio – total customer loans before ECL and adjustments.
• IAS 29: Hyperinflation accounting – restates figures for high-inflation economies; non-cash but can move reported profit.
• IAS 21 (lack of exchangeability): Uses market FX rates where official rates are not accessible, affecting USD-reported figures.
• Net interest margin (NIM): Net interest income divided by interest-earning assets – higher is better.