Access net profit jumped 123%, but bad debt doubled
ACCESS Financial posted a 123 per cent increase in net profit to $147.2 million for the year that ended December 31, 2010, but bad debt doubled.
The micro-lender saw its interest income from loans climb 28 per cent to $377.9 million while its interest expenses fell 31.8 per cent to $26 million.
A 13.9 per cent increase in interest income from securities, a 219 per cent jump in net fees and commission on loans and an 11.6 per cent rise in money services fees and commission also contributed to the substantive profit gains.
Staff costs rose 33.5 per cent to $112.3 million largely on account of a 40 per cent increase in wages, salaries and statutory contributions, which, in part, reflected an expansion in the number of persons employed by the company from 104 to 122 individuals.
Access’ loan book grew over the year by 14 per cent to $547 million, but allowance for loan losses also climbed 170 per cent to $71.9 million to cover the $133 million in loans that are considered past due.
Loans that were past due by three or more months were fully matched by impairment allowances, while $18.8 million of the $79.9 million of the bad debt that were less than three months past due was covered by the allowance.
The bad debt as at December 31, 2010 was 105 per cent higher than year-earlier levels.
