2025 Interim Results

ASA International Group plc - H1 2025 Results

Sustained growth, enhanced profitability and strengthened balance sheet

ASA International Group plc (LSE: ASAI), one of the world's largest international microfinance institutions, is pleased to announce its unaudited interim results for the six month period ended 30 June 2025.

Highlights

·    Strong loan portfolio growth - Gross Outstanding Loan Portfolio rose 37% YoY to USD 540.9m, driven by Ghana (+USD 59m in Q2 alone), supported by Pakistan, Tanzania, Uganda, and Myanmar

·    Profitability surge - Reported net profit almost doubled to USD 26.8m (H1 2024: USD 13.5m). Underlying net profit of USD 24.2m, which excludes the impact of hyperinflation accounting, was up 73% (H1 2024: USD 14.0m). Return on average equity increased to 46%. This means that there is no longer material uncertainty in relation to the going concern in the interim financial report

·    Resilient portfolio quality - Group PAR>30 improved to 2.0% (H1 2024: 2.2%), with Ghana, Uganda, Kenya and Myanmar all below 0.5%

·    Strengthened equity base - Total equity up 41% to USD 136.2m, supported by profit growth and a USD 15.5m FX translation gain (vs. USD -4.3m in FY 2024). This contributed to total comprehensive income growing to USD 43.5m in H1 2025 compared to USD 4.1m in H1 2024 (FY 2024: USD 22.1m)

·    Stable funding position - Total funding rose to USD 597.3m, supported by deposit growth and stable debt sourcing. A robust USD 229m funding pipeline is in place for H2 2025 to support future growth

·    Continued capital returns - Interim dividend declared of USD 0.048 per share (+60% YoY) on underlying net profit, maintaining the 20% payout ratio in H1 2024

Rob Keijsers, ASA International Chief Executive Officer, said:

"ASA International's outstanding performance in the first half of 2025 is a testament to the investment we have made in strengthening management, the dedication of our teams and the trust and resilience of our clients across our operating markets. Our strong operational growth, reflected by the significant increase in OLP and sustained improvements in portfolio quality, demonstrates our ability to deliver meaningful financial services to underserved female entrepreneurs. This has naturally translated into significantly improved profitability which has meant we can continue to make capital returns to our shareholders.

"An important milestone during the first half of the year was the launch of an innovative and groundbreaking partnership to offer microinsurance to our clients across Africa. Following a successful soft launch of 'ASA LifeCare' in Uganda in May, the product has now officially launched in Uganda, Kenya and Nigeria with plans to expand across all of ASA International's African markets. The partnership embeds Enhanced Credit Life into ASA International's loan products, providing affordable protection for clients from just USD 0.30 per month, covering credit, life, and health-related risks. We expect that will bolster client retention and generate additional non-interest income. This product brings added value and protection to our clients as we seek to deepen and broaden financial inclusion.

"Continuing the work undertaken throughout 2024, a core strategic focus for the Board has been on continuing to strengthen our leadership team. Both the Executive Committee at the Group-level and local leadership in Sri Lanka, Pakistan and Nigeria have been further reinforced. The positive impact they are already providing has been extremely encouraging in the form of fresh perspectives alongside significant professional, banking and leadership experience.

"We have also taken the important step of formally joining the Client Protection Pathway (CPP Pathway), a global initiative that helps financial institutions like ours demonstrate and continuously improve how we protect clients. This builds on what we already do every day and reinforces that client protection is at the heart of the ASA Model.

"Looking forward to the remainder of 2025, we expect to see the existing trend of growing demand for loans continue. We will also see ever greater productivity across the organisation as we drive efficiency in the branch network and therefore reduce our cost-income ratio. The next stage of our digital transformation effort is imminent as we roll-out the core banking system and digital platform to Ghana and Tanzania. We remain confident that our expanded reach and strengthened leadership will deliver increased financial inclusion for the communities we serve and sustainable growth for all stakeholders."

Key performance indicators

Outlook

Building on the sustained momentum seen during H1, the outlook for the remainder of 2025 remains positive with improved business and financial performance expected with continued robust demand expected. Accordingly, the expectation is that both underlying and reported net profit for 2025 is to significantly exceed the current company compiled consensus for FY 2025 of USD 37.5m (as of the date of this announcement). For H2 2025, the IMF no longer classifies Ghana and Sierra Leone as hyperinflationary, while Nigeria and Myanmar are on the watchlist. In addition, the Group continues to monitor FX and geopolitical risks.

Webcast

Management will be hosting a webcast and conference call, with Q&A, today at 14:00 (UK).

To access the webcast and download the results presentation, please go to the Investor section of the website: Investors | Asa (asa-international.com) or use the following link: ASA International - 2025 Interim Results | SparkLive | LSEG

The audio webcast will be available for playback on the Investors section of the website after the event.

2025 Interim Financial Report

Today, ASA International published its Interim Financial Report for the 6 month period ended 30 June 2025 on Investors | Asa (asa-international.com).

Preliminary financial calendar

Dividend record date               3 October 2025
Q3 2025 Business Update      21 October 2025
Dividend payment date          31 October 2025
Q4 2025 Business Update      29 January 2026

Enquiries

ASA International Group plc
Investor Relations
Jonathan Berger
[email protected]

CHIEF EXECUTIVE OFFICER'S H1 2025 REVIEW

Introduction

ASA International saw strong operational growth throughout H1 2025 as demand for our products from clients remained robust. Total number of clients reached 2.6m and Gross OLP increased by 18% compared to the year end 2024 with Ghana, Pakistan, Tanzania, Myanmar, Uganda, Kenya, and Nigeria being the main drivers for this growth. Our proven, low risk model ensured that this loan growth was not achieved at the expense of portfolio quality, with PAR>30 remaining low at 2.0% for the whole company at the end of the June 2025. We also saw Gross OLP per Client grow to USD 210 during the period as we seek to meet more of our clients' working capital needs. Efficiency also increased with Clients per Loan Officer increasing to 273 in H1 2025 from 265 in H1 2024. This operational performance also translated into significantly improved profitability with net profit almost doubling versus H1 2024 (H1 2025: USD 26.8m; H1 2024: USD 13.5m). This strong profitability enabled ASA International to continue making capital returns to shareholders in the form of an interim dividend.

From an operational footprint standpoint and in line with our strategy, the number of branches increased to 2,232 as at 30 June 2025 from 2,091 as at 30 June 2024, which reflects the opening of 140 net new branches across the various operating countries. Client numbers grew by 9% compared to H1 2024 as demand for loans increased in most markets.

Gross OLP grew to USD 540.9m at the end of June 2025 from USD 458.6m at the end of December 2024. This 18% growth was driven primarily by Ghana, where Gross OLP rose by USD 59m during Q2 2025 alone, reflecting both strong underlying portfolio expansion and also benefiting from a 32% appreciation of the Ghanaian cedi. Additional notable contributions came from Pakistan, Tanzania, Uganda and Myanmar. This growth in Gross OLP was not made at the expense of portfolio quality with this improving in most markets. PAR>30 days improved to 2.0% as at 30 June 2025 compared to 2.2% in 30 December 2024.

Regional footprint

ASA International continues to operate across four main regions comprising 13 countries:

·    East Africa comprises operations in five countries: Tanzania, Kenya, Uganda, Rwanda and Zambia

·    West Africa comprises operations in three countries: Ghana, Nigeria, and Sierra Leone

·    South East Asia comprises operations in two countries: The Philippines and Myanmar

·    South Asia comprises operations in three countries: Pakistan, India and Sri Lanka

East Africa

East Africa's operational result improved with Gross OLP increasing 8% to USD 161.3m as at 30 June 2025 from USD 148.9m as at 31 December 2024, and the number of branches increasing by 56 (YoY) to 612. This operational improvement translated into a significant growth in the region's financial performance in H1 2025, with net profit increasing by 37% to USD 9.1m from USD 6.6m. All operating countries in East Africa contributed positively to the region's operational and financial results, in particular, Tanzania and Kenya and increasingly Uganda.

West Africa

West Africa's financial and operational results materially improved in H1 2025, compared to H1 2024, with net profit more than doubling to USD 17.2m from USD 6.2m. Gross OLP significantly increased to USD 151.8m as at 30 June 2025 from USD 86.2m as at 31 December 2024, and PAR>30 significantly improved from 1.5% to 0.9% driven by the excellent portfolio quality in Ghana and a significant improvement of PAR>30 in Nigeria. Sierra Leone did experience increased PAR levels given lower collection efficiency. The strong operational and financial performance in the region was underpinned by Ghana which benefited from underlying growth combined with an appreciating currency. Both Nigeria and Sierra Leone made positive contributions following some more difficult recent periods.

South East Asia

South East Asia's net profit increased to USD 2.7m in H1 2025 from USD 2.3m in H1 2024 primarily supported by strong financial performance in Myanmar despite a challenging environment with the ongoing internal conflict and the impact of the earthquake that struck at the start of the year. As the loan demand continued to grow, the region's Gross OLP increased by 10% from USD 86.2m as at 31 December 2024 to USD 96.8m as at 30 June 2025, and PAR>30 improved to 6.3% to 6.8%. The number of branches increased by 7% from 489 to 524, resulting in an increased client reach of 480k, up by 2%.

South Asia

South Asia delivered stronger financial performance in H1 2025, with net profit increasing by 144% to USD 3.3m from USD 1.4m in H1 2024, supported by improved portfolio quality in Pakistan and Sri Lanka, which helped reduce the regional PAR>30 to 1.6% as at 30 June 2025 from 2.1% as at 31 December 2024. The branch network also expanded during the year, with number of branches increase by 40 new branches to reach 625, with Pakistan and Sri Lanka together contributing 57k new clients. However, the region's Gross OLP declined slightly by 4% to USD 131.0m as at 30 June 2025 from USD 135.9m as at 31 December 2024, mainly due to the intentional shrinking of the operations in India as the Group works to deconsolidate the business. This also affected the region's client growth trends with total clients decreasing by 7k to 847k.

Leadership

Continuing the work undertaken throughout 2024, a core strategic focus for the Board has been on continuing to strengthen our leadership team. In June 2025, Steven van Zuylen was promoted to Chief Technology Officer and joined the Executive Committee. In 2025, ASA International also welcomed Sivan Maron as Chief Human Resources Officer and a member of the Executive Committee. We were also delighted to welcome onboard new local CEOs for Sri Lanka and Pakistan in 2025 as well as CFOs in Nigeria and Sri Lanka. Furthermore, a number of other senior managers have been appointed across our operating countries, further strengthening the local finance teams.

Digital strategy and transformation

The digital strategy is focused on the implementation of a Core Banking System and a digital financial services platform that meet the requirements for running a modern micro banking institution. Alongside the digitalisation of the client journey, the intention is to also further enhance business administration processes which will drive efficiency and productivity gains.

The next stage of the digital transformation programme involves the roll-out of the Temenos Core Banking System and digital financial services app in Ghana and Tanzania and this is targeted to go-live later this year.  Once this has been completed, nearly 50% of our clients will have been transferred to this new platform.

Competitive environment

The competitive landscape remains broadly unchanged with the strongest competition being faced in India, The Philippines, Nigeria, Tanzania, and Uganda. In most other markets, competition from traditional microfinance institutions is less intense, particularly in Myanmar. Competition from pure digital lenders has not had a meaningful impact thus far.

Sustainability

In the first half of 2025, we advanced our sustainability agenda by installing 71 solar systems, purchasing 28 electric motorbikes, planting 10,000 trees, training more than 60,000 stakeholders in environmental awareness, and removing over 100 kilos of plastic from the streets. Over the same period, 80,000 community members benefitted from initiatives in health, education, environment, and disaster relief, including health camps, hospital and maternal support, water tank donations, scholarships, and waste management campaigns. Client protection remains a cornerstone of our operating model, with policies and practices already aligned to the principles promoted by Cerise+SPTF and to further reinforce this commitment, we have now joined the Client Protection Pathway.

Interim dividend

In line with our commitment to make capital returns to shareholders, an interim dividend of USD 0.048 per share (H1 24: USD 0.03) is being declared by the Board, which is 60% higher than the 2024 interim dividend. The Board has elected to declare the dividend over the underlying net profit of USD 24.2m, which excludes the impact from hyperinflation accounting, therefore implying a 20% dividend payout ratio, equivalent to the 20% payout ratio for H1 24.

Climate Week NYC

ASA International is featured in the Climate Week NYC Interview Series on CNBC.com with a segment titled Her Power. The video highlights how women across Africa and Asia are driving change through financial inclusion, supported by ASA International's unique lending approach, the ASA Model. Rooted in trust, accountability, and community engagement, the model helps women build businesses, strengthen families, and transform communities. An accompanying article further explores ASA International's approach and impact. View the video and associated content here - Climate Week NYC

Looking ahead

I would like to pay tribute to my colleagues who have been instrumental in delivering ASA International's successes in the first half of 2025. They will also be key to delivering the growth we see for the rest of this year and going forward.

Looking forward to the rest of 2025, we expect to see growing demand for loans and ever greater productivity across the organisation as we drive efficiency in the branch network and therefore reduce our cost-income ratio. From a digital transformation standpoint, we will build on the successes of 2024 by continuing the roll-out of the core banking system and digital platform to Ghana and Tanzania. In addition, we are encouraged by the launch of our microinsurance product 'ASA LifeCare', and look forward to expanding this across all of ASA International's African markets. We also expect to further strengthen the leadership teams at both the group and operating country level during the remainder of 2025.

CHIEF FINANCIAL OFFICER'S H1 2025 REVIEW

Tanwir Rahman, ASA International Chief Financial Officer, said:

"ASA International delivered a significantly improved financial performance in H1 2025 compared to the same period in 2024 both in terms of top-line growth and bottom-line profit. Financial resilience has improved materially with growth in the equity base.

"Robust profitability and enhanced equity levels were achieved in the first half which aligned with the focus on growing our asset base in a sustainable manner. Ghana and Pakistan were major contributors to this profitability and asset base growth, with Ghana not only seeing a significant growth in its loan book but also benefiting from the appreciation of its currency during the period. The net profit of USD 26.8m in H1 2025 includes a net positive impact from hyperinflation accounting for Ghana and Sierra Leone (USD 2.5m). Excluding this one-off item, the underlying net profit amounted to USD 24.2m which still represents an 73% increase compared to H1 2024. This robust profitability has meant that there is no longer material uncertainty in relation to the going concern in the financial statements. It is worth noting that Ghana and Sierra Leone are currently no longer expected to be considered hyperinflationary for the second half of 2025 as per the latest publication from the IMF.

"During H1 2025, the local currencies remained stable in most of the countries with the major exception being the significant appreciation of the Ghana cedi. This resulted in a favourable outcome in the income statement in USD terms and a net positive impact on the foreign currency translation reserve in equity compared to H1 2024. Accordingly, we achieved a materially stronger total comprehensive income in H1 2025 when compared to H1 2024.

"We also witnessed a strong growth in total equity at the end of H1 2025 even after the payment of the final dividend. This is mainly driven by the profit growth and positive translation impact from operating currency devaluation.

"From an efficiency standpoint, we also improved the cost to income ratio in H1 2025 mainly through higher income generation which outpaced the growth in operating costs. We are delighted by the momentum of the business and are extremely confident in the outlook for continued growth for the remainder of 2025."

Summary income statement

Net interest income

Net interest income increased by 48% to USD 111.3m in H1 2025 from USD 75.1m in H1 2024. This is primarily driven by the YoY growth of 43% in interest and similar income, which increased to USD 136.1m from USD 95.2m attributable to the increased size of ASA International's loan portfolio, especially in Ghana, Pakistan, Tanzania, Myanmar and Kenya. Interest and similar expense increased to USD 24.8m in H1 2025 from USD 20.1m in H1 2024, due to an increase in external debt to help fund the growth in the loan portfolio and relatively higher cost of funding. Overall, net interest margin improved from 32.3% in H1 2024 to 39.6% in H1 2025.

Net operating income

Net operating income grew by 39% to USD 114.8m in H1 2025 from USD 82.4m despite the impact of 33% higher credit loss expenses (USD 3.2m compared with USD 2.4m YoY). The credit loss expenses tracked the growth in the loan portfolio. Other operating income decreased by 31% to USD 6.7m from USD 9.7m (YoY) with H1 2024 reflecting a one-off gain from a loan re-assignment in Myanmar.

Total operating expenses

Total operating expenses increased by 27% from USD 50.8m in H1 2024 to USD 64.8m in H1 2025, primarily due to impact of Ghana cedi appreciation on USD-denominated costs. There was also a 26% increase in personnel expenses from USD 30.3m in H1 2024 to USD 38.3m, driven by staff expansion. Other operating expenses also contributed to overall increase, with a 29% growth from USD 20.5m in H1 2024 to USD 26.5m in H1 2025, driven by higher administrative costs associated with ongoing business expansion. Overall, as a result of enhanced operational efficiency, the cost-income ratio improved from 61.7% in H1 2024 to 56.4% in H1 2025.

Gain/loss on the net monetary position

The loss on the net monetary position, reflecting the impact of the application of hyperinflation accounting for Ghana and Sierre Leone, reduced to negative USD 1.8m in H1 2025 compared to negative USD 2.6m in H1 2024 given the improving inflation and macroeconomic situation seen in Ghana towards the end of 30 June 2025. The impact of CPI adjustment on other income statement items resulted in a USD 4.3m gain, which meant that the total impact of IAS 29 on net profit amounted to USD 2.5m net gain.

Profitability

Profit before tax increased by 68% to USD 47.8m in H1 2025 from USD 28.3m in H1 2024, given the improved income growth and cost dynamics outlined above. Accordingly, net profit also increased from USD 13.5m in H1 2024 to USD 26.8m in H1 2025, while benefiting from improvements in the effective tax rate.

Effective tax rate (ETR)

There was a favourable tax position in certain jurisdictions in H1 2025 compared to H1 2024. This, to some extent, contributed to the reduction in the effective tax rate (excluding withholding taxes) to 38.7% in H1 2025 from 45.1% in H1 2024. Including withholding taxes, the effective tax rate decreased to 43.9% in H1 2025 from 52.4% in H1 2024. This reduction is mainly due to a favourable movement in the profit mix, with higher profit being generated in countries having a lower ETR such as, Ghana, Kenya and the Philippines, thereby reducing the total average tax rate for the Group as a whole.

Summary balance sheet

Loans to customers

Loans to customers, a significant asset item on the balance sheet, increased by 21% from USD 410.0m as at end of 31 December 2024 to USD 496.1m at the end of 30 June 2025 due to higher demand from clients, especially in the countries of the East African region, as well as in Pakistan and Ghana including the favourable FX impact. Accordingly, the Group's total Outstanding Loan Portfolio (Including off-book portfolio) also increased by 18% to USD 527.4m as at 30 June 2025 from USD 446.6m as at 31 December 2024.

Total assets

Total assets increased by 18% to USD 672.2m as at 30 June 2025 (31 December 2024: USD 568.5m) primarily due to expansion of the loan portfolio. Cash and cash equivalents (includes due from banks) increased by 2% from USD 108.4m as at 31 December 2024 to USD 111.0m as at 30 June 2025 reflecting active liquidity management. Additionally, other assets increased by 30% to USD 65.1m as at 30 June 2025 (31 December 2024: USD 50.1m), mainly as a result of increase in intangible assets as a part of the Group's digital transformation initiatives.

Client deposits

Client deposits (excluding interest payables) levels improved by 33% to USD 119.6m as at 30 June 2025 from USD 90.1m as at 31 December 2024, mainly driven by an increase in security deposits (USD 98.4m as at 30 June 2025 and USD 74.5m as at 31 December 2024) in line with the growing customer loan portfolio. Additionally, voluntary savings increased to USD 21.1m as at 30 June 2025 compared to 31 December 2024 (USD 15.7m), reflecting a growing customer appetite for savings.

Interest bearing debt

Third-party interest-bearing debt (excluding interest payables) increased by 9% as at 30 June 2025 to USD 341.5m from USD 312.7m as at 31 December 2024, primarily at the operating subsidiary level, with significant new transactions in Pakistan, Tanzania and Philippines, as well as at the holding, including major financing arrangements with OeEb, FMO and Oikocredit.

Total equity

The equity position strengthened by 41% to USD 136.2m as at 30 June 2025 from USD 96.5m as at 31 December 2024, supported by higher profitability (USD 26.8m in H1 2025 and USD 28.5m in FY 2024) and a positive impact in foreign currency translation reserve (USD 15.5m at the end of June 2025 and a negative impact of USD 4.3m at the end of December 2024) compared to year-end 2024.

Equity movements

Impact of foreign exchange rates

As a company with a reporting currency in US Dollars with operations in thirteen different currencies, there may be currency movements that can have a major impact on the consolidated USD financial performance and reporting.

The effect of this can be generally categorized in the equity section in two ways: (i) existing and future local currency earnings translate into fewer US Dollar earnings, and (ii) local currency capital of any of the operating subsidiaries will translate into a lower US Dollar capital.

The Ghanaian cedi (GHS) appreciated by 32% YoY, which positively impacted the USD earnings of the Group's subsidiaries and contributed to an improvement in the foreign currency translation reserve. The total contribution to the foreign currency translation reserve in H1 2025 amounted to USD 15.5m, compared with a negative contribution of USD 8.7m in H1 2024. Of this, it is mainly attributable to the appreciation of the GHS with positive contribution of USD 16.8m, representing a significantly higher impact than the USD 3.3m negative movement recorded in H1 2024.

Total comprehensive income

ASA International is prioritising the management of its other comprehensive income movement which is significantly impacted by the foreign currency exchange differences on translation of foreign operations. Comprehensive income improved to USD 43.5m in H1 2025 from USD 4.1m in H1 2024. Increased profit for H1 2025 and actual currency appreciation seen in H1 2025 specifically in Ghana contributed to this variance compared to H1 2024. Upstreaming of dividends to the Group was also higher in H1 2025 than in H1 2024 and this remains a key point of focus particularly when local regulatory approval is required.

The Group intends to minimize the impact of FX fluctuations by continuing with frequent dividend declarations by its operating entities and to explore potential equity hedging strategies. Hedging of operating entity equity has historically been hugely expensive and not deemed to offer the required cost-benefit dynamic. Furthermore, a strong focus on enhancing operational productivity will support improved financial performance and resilience against foreign currency volatilities.

Funding

Total funding increased to USD 597.3m as at 30 June 2025 from USD 499.3m at the end of December 2024.

A favourable maturity profile has been maintained with the average tenor of all funding from third parties being substantially longer than the average tenor at issuance of customer loans which ranges from six to twelve months for the majority of the loans. Local deposits have increased YoY in USD terms. This increase was primarily due to significant increase in security deposits mainly in Ghana. Equity increase was primarily due to operating currency appreciation year-on-year (GHS: 32%, MMK: 16%) and higher profits. The Group remains focussed on maintaining a healthy funding mix with a majority local sourced and local currency funding. The cost of funding improved to 11.2% at the end of June 2025 from 11.4% at the end of June 2024.

Lenders demonstrated their confidence in the Group and continued to provide funding as the Group was able to raise USD 117.7m at the end of June 2025 (31 December 2024: USD 193.8m), and there is a substantial funding pipeline for H2 2025 amounting to USD 229m, with almost 92% having agreed terms and can be accessed in the short to medium term. There are existing credit relationships with more than 50 lenders across the world, which has provided reliable access to competitively priced funding for the growth of the loan portfolio.

The Group has USD 85.8m (31 December 2024: USD 79.1m) of cash at bank and in hand as at 30 June 2025 of which USD 58.0m (31 December 2024: USD 50.2m) is unrestricted and can be utilized for operational and other working capital needs.

Net debt at the holding company level increased slightly to USD 66.8m as at 30 June 2025, compared with USD 62.9m as at 30 June 2024. Despite this increase, the Group remains committed to its strategy of gradually reducing the proportion of debt funding sourced at the holding company level over time.

As of 30 June 2025, the balance for credit lines with breached covenants amounts to USD 18.1m (excluding the USD 8.7m in ASA India NCDs purchased from Symbiotics) and the Group has received waivers for USD 16.7m. The Group is still under discussion to receive waivers for the remaining USD 1.4m.

The H1 2025 condensed consolidated financial statements have been prepared on a going concern basis. It should be noted that in the 2024 Annual Report and Accounts, approved on 24 April 2025, senior management and the Directors concluded that there was a material uncertainty that may cast significant doubt over the Group's ability to continue as a going concern relating to debt covenant breaches, and reputational risks leading to potential debt recalls.  In performing the going concern assessment for the interim consolidated financial statements for H1 2025, the Directors have reviewed these prior concerns and considered current global economic challenges, while factoring the Group's improved operating and financial position for the first half of 2025 and expectations for the period up to 30 September 2026 (the 'Assessment Period'). The conclusion of this assessment reverses the previous view from the 2024 Annual Report and Accounts. Senior management and the Directors now conclude that there is no longer a material uncertainty that may cast significant doubt over the Group's ability to continue as a going concern.

Expected credit losses

The Group increased its reserves in the balance sheet for expected credit losses (ECL) from USD 10.1m as at end of June 2024 to USD 13.9m as at end of June 2025, for its OLP, including the off-book BC portfolio in India and interest receivables. The increase was primarily due to the growth of OLP.

Furthermore, the USD 13.9m of ECL reserves as at 30 June 2025 mainly relate to overdue loans in India (26%), The Philippines (25%) and Myanmar (12%), with the remainder spread across the other countries.

Hyperinflation accounting

The IFRS standard IAS 29 "Financial Reporting in Hyperinflationary Economies" ('IAS 29') requires the Group to adjust the H1 2025 financial information of operating entities, which are hyperinflationary economies with the main indicator being three-year cumulative inflation exceeding 100% in the period 2023-2025. All items are presented to reflect the current purchasing power at the reporting date.

Based on this, hyperinflation accounting is applied in the interim financial statements of the Group in relation to Ghana and Sierra Leone. The application of IAS 29 results in non-cash adjustments in the presentation of the financial information of the Group. In H1 2025, the net impact was an increase in net profit of USD 2.5m, comprising a loss on net monetary position of USD 1.8m, offset by the positive impact of CPI adjustments on other income statement items of USD 4.3m.

Based on the latest IMF publication, the current assessment for the remainder of 2025 is that both Ghana and Sierra Leone will not be subject to hyperinflationary accounting. Should this be the case, it would mean that the overall impact of hyperinflation accounting on the Group's accounts in 2025 is expected to be materially reduced. Nigeria and Myanmar are on the watchlist.

Regulatory capital

Currently, twelve out of thirteen operating subsidiaries are subject to minimum regulatory capital requirements. As of 30 June 2025, with the exception of ASA India, there was full compliance with all relevant minimum regulatory capital requirements.

REGIONAL PERFORMANCE

Regional snapshot

*Including gain/loss on net monetary position and exchange rate differences

Regional and country OLP and portfolio quality

South Asia

Net interest income

Net interest income increased by 24% reaching USD 20.0m in H1 2025 from USD 16.1m in H1 2024 despite the low contribution from India. South Asia's net interest income is primarily driven by the strong operations of Pakistan where both the loan portfolio and interest income showed an improvement. Meanwhile, interest and similar expenses remained in line with the previous year (H1 2025: USD 5.6m, H1 2024: USD 5.6m), contributing to an overall improvement in the net interest margin.

Net operating income

Net operating income also improved by 26% to USD 21.2m in H1 2025 from USD 16.8m in H1 2024 as a result of operational expansion and reduced credit loss expenses.

Total operating expenses

Total operating expenses grown by 19% to USD 14.0m in H1 2025 from USD 11.8m in H1 2024, which was driven primarily by the personnel expenses increase from USD 8.3m in H1 2024 to USD 9.7m due to an expansion in the workforce to support operations.

Profitability

Profit before tax grew by 44% to USD 7.2m in H1 2025, compared to USD 5.0m in H1 2024, driven by improved income trends and better cost-to-income ratio (65.5% in H1 2025, 70.3% in H1 2024). Net profit increased by 144% to USD 3.3m in H1 2025, from USD 1.4m in H1 2024, supported by overall performance improvements, with Sri Lanka turning profitable during the period.

Pakistan

ASA Pakistan grew its operations in the period with increased demand from clients:

·    Number of clients increased from 618k to 673k (up 9% YoY)

·    Branch network increased to 405 branches from 345 (H1 2024), supporting the increase in client reach

·    As a result, OLP increased as result from USD 89.1m to USD 93.5m (up 5% YTD)

·    Gross OLP/Client also increased from USD 136 to USD 140 (up 3% YTD)

·    PAR>30 remained at 0.5% compared to 31 December 2024

India

ASA India intentionally shrank its operations in the period to 30 June 2025, in line with the Group's decision to deconsolidate the business, including the reassignment of loans as part of the deconsolidation process. Accordingly, the focus in the period was on recovery of overdue loans while maintaining the off-book portfolio:

·    Number of clients decreased from 193k to 129k (down 33% YoY) due to increase in new 'off book' loan disbursements

·    Number of branches reduced from 176 to 157 (down 11% YoY)

·    On-book portfolio decreased from USD 0.7m to USD 0.1m (down 86% YTD)

·    Off-book portfolio decreased from USD 35.8m to USD 27.0m (down 24% YTD)

·    Gross OLP/Client increased from USD 235 to USD 238 (up 1% YTD)

·    PAR>30 (including off-book) deteriorated from 5.4% as at December 2024 to 5.9% as at June 2025.

The Board continues to work towards a full deconsolidation of ASA India from the Group by the end of December 2025.

Sri Lanka

Lak Jaya's operations improved in the period despite heightened competition in the country:

·    Number of clients increased from 42k to 45k (up 6% YoY)

·    Number of branches reduced by 1 to 63, due to the merger of two branches to improve efficiency and cost management

·    OLP increased from USD 5.0m to USD 5.5m (up 10% YTD)

·    Gross OLP/Client increased from USD 123 to USD 132 (up 7% YTD)

·    PAR>30 improved from 4.9% to 4.5% as collection efficiency is improved compared to year-end 2024

South East Asia

Net interest income

Net interest income increased by 17% reaching USD 17.5m in H1 2025 (H1 2024: USD 15.0m) as Philippines demonstrated resilience of their operations despite being affected from typhoons and increasing their interest income. Net interest margin improved, as the interest expense remained stable (H1 2025: USD 3.8m, H1 2024: USD 3.4m). Meanwhile, interest income grew from USD 18.3m in H1 2024 to USD 21.4m in H1 2025.

Net operating income

Net operating income improved by 9% to USD 17.0m in H1 2025 from USD 15.6m in H1 2024. However, it resulted in lower other operating income (H1 2025: USD 2.9m; H1 2024: USD 3.1m) and higher credit loss expenses (H1 2025: USD 1.6m; H1 2024: USD 0.8m), driven by OLP growth in both countries and a decline in portfolio quality in the Philippines.

Total operating expenses

Total operating expenses increased by 10% to USD 13.6m in H1 2025 from USD 12.4m in H1 2024, primarily driven by elevated personnel expenses in The Philippines in efforts to improve employee retention.

Profitability

Profit before tax increased by 5% from USD 3.2m in H1 2024 to USD 3.4m in H1 2025, primarily due to higher personnel and credit loss expenses in the Philippines. Net profit increased by 17% to USD 2.7m in H1 2025 from USD 2.3m in H1 2024.

The Philippines

Pagasa Philippines' operations grew in the period, despite challenges created in the country by typhoons:

·    Number of clients remained stable at 352k

·    Number of branches increased from 400 to 433 (up 8% YoY)

·    OLP increased from USD 58.4m to USD 61.7m (up 6% YTD)

·    Gross OLP/Client increased from USD 171 to USD 185 (up 8% YTD)

·    PAR>30 improved compared to 31 December 2024 from 6.8% to 6.3%

Myanmar

ASA Myanmar's operations improved in the period despite the Group having to contend with the military conscription law, the large earthquake occurrence that hit the country in March 2025 and unstable political situation. With most of the Group's operations located in relatively safer zones, ASA Myanmar maintained effective monitoring, resulting in quality portfolio growth

·    Number of clients increased from 118k to 128k (up 8% YoY)

·    Number of branches increased from 89 to 91 (up 2% YoY)

·    OLP increased from USD 25.6m to USD 29.9m (up 17% YTD)

·    Gross OLP per client increased from USD 223 to USD 247 (up 11% YTD)

·    PAR>30 slightly improved compared to 31 December 2024 from 0.3% at 0.2%

West Africa

Net interest income

Net interest income increased by 89%, totalling USD 38.7m in H1 2025, compared to USD 20.5m in H1 2024. While interest income rose due to increased demand from clients in Ghana and Nigeria. Additionally, significant currency appreciation in Ghana had a positive impact on the overall results.

Net operating income

Net operating income improved by 92% to USD 38.7m in H1 2025 from USD 20.2m in H1 2024, due to lower credit loss expenses (H1 2025: USD 0.1m, H1 2024: USD 0.3m), mainly driven by a portfolio quality improvement in Nigeria.

Total operating expenses

The total operating expenses slightly increased by 27%, standing at USD 12.7m in H1 2025 compared to USD 10.0m, following an increase in personnel expenses to support business growth (H1 2025: USD 6.7m, H1 2024: USD 4.0m) and other operating expenses (H1 2025: USD 4.1m, H1 2024: USD 3.4m). Despite the increase in expenses, the cost-to-income ratio improved to 28.4% in H1 2025 from 35.1% in H1 2024, reflecting strong income growth.

Profitability

Ghana underpinned the region's strong performance, supported by operational growth and favourable FX movements. Profit before tax increased by 155% to USD 26.0m in H1 2025 from USD 10.2m in H1 2024. An improvement in tax position further supports the net profit growth, which has increased by 177% reaching USD 17.2m in H1 2025 (H1 2024: USD 6.2m) including a positive impact of hyperinflation accounting of USD 2.5m in H1 2025 (H1 2024: Negative USD 3.5m).

Ghana

ASA Savings & Loans operations overcame the economic challenges within the country and demonstrated tremendous performance with excellent portfolio quality and appreciating currency:

·    Number of clients increased from 192k to 237k (up 23% YoY)

·    Number of branches increased from 150 to 153 (up 2% YoY)

·    OLP increased from USD 67.5m to USD 129.3m (up 92% YTD) supported by currency appreciation of the Ghanaian cedi versus the USD

·    Gross OLP/Client increased from USD 304 to USD 547 (up 80% YTD)

·    PAR>30 remained stable at 0.2% compared to 31 December 2024

Nigeria

ASA Nigeria saw an improved operational performance despite high inflation levels and an unstable economy:

·    Number of clients increased from 146k to 158k (up 8% YoY)

·    Number of branches increased from 263 to 269 (up 2% YoY)

·    OLP increased from USD 11.0 to USD 14.2m (up 29% YTD)

·    Gross OLP/Client increased from USD 78 to USD 95 (up 21% YTD)

·    PAR>30 significantly improved from 4.9% as at 31 December 2024 to 2.7% as a result of improved KYC and due diligence practices

Sierra Leone

ASA Sierra Leone saw an improved operational performance:

·    Number of clients increased from 37k to 43k (up 15% YoY)

·    Number of branches increased from 48 to 49 (up 2% YoY) supporting the increase in client reach

·    OLP increased from USD 6.3m to USD 6.8m (up 8% YTD)

·    Gross OLP/Client increased from USD 155 to USD 172 (up 11% YTD)

·    PAR>30 slightly increased compared to 31 December 2024 from 9.4% to 9.5%

East Africa

Net interest income

Net interest income saw a significant improvement of 41%, reaching USD 37.0m in H1 2025 (H1 2024: USD 26.2m) as a result of operational growth in all countries, supported by an OLP growth of 30% YoY basis. The positive effect of the increase in interest and similar income (H1 2025: USD 46.7m, H1 2024: USD 33.4m) is slightly offset by an increase in interest and similar expenses (H1 2025: USD 9.7m, H1 2024: USD 7.2m) reflecting the increased level of funding deployed to support the region's ongoing expansion

Net operating income

Net operating income increased by 37% to USD 34.4m in H1 2025 from USD 25.1m in H1 2024 mainly driven by higher interest income, partly offset by an increase in credit loss expense in the region compared to last year (H1 2025: USD 1.1m, H1 2024: USD 0.5m).

Total operating expenses

Total operating expenses increased by 41% during H1 2025 to USD 20.2m (H1 2024: 14.3m) primarily due to an increase in personnel expenses (H1 2025: USD 11.6m, H1 2024: USD 8.9m) to support the region expansion. Despite of the increase in expenses, the operational efficiency improvement is proven by the cost-to-income ratio remaining stable at 57.7% in H1 2025 from 57.2% at H1 2024.

Profitability

Profit before tax improved from USD 10.8m in H1 2024 to USD 14.2m in H1 2025 as a result of substantial interest income. Net profit increased from USD 6.6m in H1 2024 to USD 9.1m in H1 2025.

Tanzania

ASA Tanzania expanded its operations in the period:

·    Number of clients increased from 258k to 300k (up 17% YoY) as the more favourable loan terms are attracting an increased number of clients

·    Number of branches increased from 211 to 241 (up 14% YoY) supporting the increased client reach

·    OLP slightly increased from USD 84.4m to USD 84.6m (up 0.2% YTD)

·    Gross OLP/Client decreased from USD 305 to USD 286 (down 6% YTD)

·    PAR>30 increased slightly to 1.6% from 1.3% (31 Dec 2024) due to operational challenges

Kenya

ASA Kenya also expanded its operations in the period overcoming stiff competition in the market:

·    Number of clients increased from 237k to 279k (up 18% YoY)

·    Number of branches increased from 145 to 160 (up 10% YoY) in order to respond to increased client demands

·    As a result, OLP increased from USD 36.3m to USD 39.6m (up 9% YTD)

·    Gross OLP/Client increased from USD 139 to USD 142 (up 2% YTD)

·    PAR>30 remained stable at 0.3% compared to 31 December 2024

Uganda

ASA Uganda also saw a significant improvement in operations in the period:

·    Number of clients increased from 131k to 179k (up 36% YoY)

·    Number of branches increased from 125 to 133 (up 6% YoY)

·    OLP increased from USD 18.6m to USD 24.7m (up 33% YTD).

·    Gross OLP/Client increased from USD 124 to USD 139 (up 12% YTD)

·    PAR>30 remained stable at 0.2% compared to 31 December 2024

Rwanda

ASA Rwanda saw a strong improvement in operations in the period:

·    Number of clients increased from 21k to 24k (up 16% YoY)

·    Number of branches remained at 37

·    OLP increased from USD 4.9m to USD 6.0m (up 22% YTD).

·    Gross OLP/Client increased from USD 228 to USD 263 (up 15% YTD). There is an emphasis on branches located in urban areas to serve to clients who have the capacity to take on higher loan sizes

·    PAR>30 improved to 4.9% from 5.1% as at 31 December 2024

Zambia

ASA Zambia expanded its operations in the period:

·    Number of clients increased from 27k to 30k (up 13% YoY)

·    Number of branches increased from 38 to 41 (up 8% YoY)

·    OLP increased from USD 3.1m to USD 4.2m (up 34% YTD)

·    Gross OLP/Client increased from USD 114 to USD 145 (up 27% YTD)

·    PAR>30 improved to 3.2% from 3.4% as at 31 December 2024

Forward-looking statement and disclaimers

This announcement does not constitute or form part of any offer or invitation to purchase, otherwise acquire, issue, subscribe for, sell or otherwise dispose of any securities, nor any solicitation of any offer to purchase, otherwise acquire, issue, subscribe for, sell, or otherwise dispose of any securities. The release, publication or distribution of this announcement in certain jurisdictions may be restricted by law and therefore, persons in such jurisdictions into which this announcement is released, published or distributed should inform themselves about and observe such restriction.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated by the Market Abuse Regulation (EU) No.596/2014, as it forms part of UK law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"). Upon the publication of this announcement, this inside information is now considered to be in the public domain.

The person responsible for the release of this announcement on behalf of the Company for the purposes of MAR is Tanwir Rahman, Chief Financial Officer.

Notes

(1) Profit before tax and net profit for H1 2025 include an IAS 29 hyperinflation positive impact of USD 2.5m (negative impact of USD 3.5m in H1 2024) in the consolidated financial statements

(2) Underlying net profit excludes the IAS 29 hyperinflation positive impact of USD 2.5m in H1 2025 (negative impact of USD 3.5m in H1 2024) and one-off gain from loan re-assignment in Myanmar of USD 3.0m in H1 2024  

(3) PAR refers to 'Portfolio at Risk'. PAR>30 is the percentage of outstanding customer loans with at least one instalment payment overdue 30 days, excluding loans more than 365 days overdue, to Gross OLP including off-book loans

(4) Outstanding loan portfolio ('OLP') includes off-book Business Correspondence ('BC') loans and Direct Assignment loans, and loans valued at fair value through profit and loss ('FVTPL'), excludes interest receivable, unamortized loan processing fees, and deducts ECL reserves from Gross OLP

(5) Other operating expenses include depreciation and amortisation charges

(6) Other liabilities include the following liabilities: retirement benefit, current tax, deferred tax, lease and derivative liabilities, any other liabilities, provisions and interest payables

(7) 'ASA International', the 'Company', the 'Group' all refer to ASA International Group plc and its subsidiaries

(8) 'Holdings', 'Holding companies' or 'Holding entities' all refer to ASA International Holding and ASA International NV