Access adds two branches, triples profit
Published:Friday | October 29, 2010 | 12:00 AM
Access Financial Services Limited, a provider of small and micro business and personal loans, has tripled its net profit earnings for the three-month period ending September on what the company attributes to growth in the company's loan portfolio as its branch network expands.
Quarterly net profit amounted to J$35.2 million, compared to J$11.5 million at the end of corresponding period last year. The performance was similar over the nine-month period, with net profit jumping from J$36 million to J$105 million, from top-line revenue which grew from J$208 million to J$286 million.
All operating income lines showed improvement in the third quarter, with interest income from loans contributing the most to revenue.
"Growth in profitability was attributed to a 10 per cent increase in loan portfolio," said Marcus James, chief executive officer of Access, in a statement.
"The company also enhanced its operational efficiency as evidenced by the improvement in productivity ratio, which moved from 78 per cent to 68 per cent for the quarter under review," he said.
At the end of September, loans and advances totalled J$448.8 million, up from J$409.3 million at September 2009 - growth which also pushed up the company's balance sheet assets to J$593.6 million.
Asset growth was also helped by an increase in the company's information technology infra-structure and increased cash, which moved to J$66 million, up from J$27.8 million.
The company's total interest income increased by approximately 26 per cent to J$97.3 million, compared to J$77.5 million in the similar quarter of 2009.
Net trading income and other operating income also moved up to J$95.7 million and J$106.5 million, respectively.
Total operating expenses, at J$71.4 million, were also up in the quarter.
"The increase was primarily driven by increase in other operating expense, as the company continues to invest internally to meet its growth," said James.
Growth strategy
Access Financial lists the expansion of its branch network as part of the company's growth strategy. Within the quarter, the company added two more branches to its existing 11 offices, from which customers can access its services.
On August 1, Access Financial opened its Old Harbour and Brown's Town offices, bringing the total branches to 13, along with its four money-service centres operating nationwide.
Access now employs approxi-mately 100 staff, spread across its lending and money-service units, and is recruiting three more for its Old Harbour branch.
"Our team members are working hard to ensure that they meet the internal targets which have been set and we are very happy with the year-to-date performance of our branches," said James.
Access Financial Services Limited, which was the first company to list on the JSE Junior Stock Exchange, is now trading at J$4.50 per share, putting its stock market value at J$1.2 billion.