ASA International Group plc March 2023 quarterly business update

Amsterdam, The Netherlands, 18 April 2023 - ASA International, ('ASA International', the 'Company' or the 'Group'), one of the world's largest international microfinance institutions, today provides the following update on its business operations as of 31 March 2023 compared to 31 December 2022.

·    All operating subsidiaries achieved collection efficiency of more than 90% with 10 countries achieving more than 95% with the exception of India and Nigeria.

·    The decrease of collection efficiency in Nigeria was largely due to cash shortages following the Central Bank voiding old banknotes as legal tender, which resulted in some clients being unable to pay their instalments on time as well as the operating environment during the elections.

·    India collections slightly decreased from 87% in December 2022 to 86% in March 2023. Collection efficiency, including regular and overdue collections as well as advance payments, as a percentage of the regular, realisable collections, including advance payments, decreased from 118% in December 2022 to 109% in March 2023.

·    PAR>30 for the Group, including off-book loans and excluding loans overdue more than 365 days, improved to 4.5% in March 2023 from 5.9% in December 2022, primarily due to write-offs of long overdue loans in India, Myanmar and Nigeria.

·    The PAR>30 for the Group's operating subsidiaries, excluding India and Myanmar increased to 2.6% in March 2023 from 1.9% in December 2022, largely due to the cash shortages in Nigeria affecting the repayment ability of our clients.

·    Excluding all loans which have been overdue for more than 180 days and, as a result, have been fully provided for, PAR>30 improved from 4.1% in December to 2.6% in March.

·    Disbursements as a percentage of collections exceeded 100% in 9 countries. The lower percentage in Nigeria is impacted by the cash shortages which subsequently reduced the ability of our staff to perform daily collections and disbursements.

·    The Group's Gross OLP decreased to USD 335 million (9% lower than in December 2022 and 19% lower than in March 2022), primarily due to substantial currency devaluation in Ghana and Pakistan.

·    There were no moratoriums granted to clients from January 2023 to March 2023.

Collection efficiency until 31 March 2023⁽¹⁾  

·    Collection efficiency increased or remained broadly stable in most of our operating countries.

·    Adjusted collection efficiency in India, including regular and overdue collections as well as advance payments, as a percentage of the regular, realisable collections, including advance payments decreased to 109%. The substantial difference of this adjusted collection efficiency metric is related to the Group's policy that any loan instalment paid is first credited against the oldest outstanding amount overdue. This has an adverse impact on India's monthly collection efficiency, which is further aggravated by the relatively long duration of the loans disbursed in India. This adjusted collection efficiency metric illustrates that most clients in India continue to make payments on their loans due.

·    Although market conditions in both Myanmar and Sri Lanka remained challenging, collection efficiency improved in both markets.

·    The decrease of collection efficiency in Nigeria was due to cash shortages following the Central Bank as old banknotes were no longer accepted as legal tender as of 10 February 2023.. Nigeria's Supreme Court on 3 March 2023, ordered the Central Bank of Nigeria to extend the use of these old banknotes until 31 December 2023.

Loan portfolio quality up to and including March 2023^{(3, 4, 5)}  

·    Gross OLP in India slightly reduced to USD 44 million (2% lower than in December 2022 and 57% lower than in March 2022) as the disbursement as percentage of collections increased.

·    PAR>30 for the Group decreased from 5.9% in December 2022 to 4.5% in March 2023, primarily due to write-offs of long overdue loans in India, Myanmar and Nigeria.

·    Credit exposure of the India off-book BC portfolio of USD 24.9m is capped at 5%. The included off-book DA portfolio of USD 1.1 million has no credit exposure.

Disbursements vs collections of loans until 31 March 2023⁽⁶⁾  

·    Disbursements as a percentage of collections exceeded 100% in 9 countries. The lower percentage in Nigeria is impacted by the cash shortages which subsequently reduced the ability of our staff to perform daily collections and disbursements.

Development of Clients and Outstanding Loan Portfolio until 31 March 2023

⁽⁷⁾ Constant currency ('CC') implies conversion of local currency results to USD with the exchange rate from the beginning of the period.

·    The Group's Gross OLP decreased to USD 335 million (9% lower than in December 2022 and 19% lower than in March 2022), primarily due to substantial currency devaluation in Ghana and Pakistan.

Key events in March and April 2023

The Central Bank of Nigeria announced on 13 March 2023 that it was extending the deadline to swap out old bank notes (of NGN 200, NGN 500 and NGN 1,000) for redesigned notes until 31 December 2023, following the cash shortage crisis that occurred after their initial deadline of 10 February 2023 passed. Both old notes and the redesigned notes will be available as legal tender for use in payment transactions until the end of 2023.

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Enquiries:

ASA International Group plc

Investor Relations                                                                                          

Mischa Assink                                                                                    ir@asa-international.com

About ASA International Group plc

ASA International Group plc (ASAI: LN) 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.