ACCESS Financial Services Ltd (AFS) said that it made its loans more competitive this year in response to the dip in its loan portfolio in 2014.

It was the first decline in its loans portfolio in at least five years. The move hints at increased competition in the micro-lending industry traditionally beset with relatively high interest rates.

“Again we have rectified those issues and we are returning to growth,” said chief executive officer and founder Marcus James in response to a query from outspoken shareholder Orette Staple at the annual general meeting (AGM) held at the Knutsford Court Hotel in Kingston on Wednesday. “Last year we made some adjustments to our loan products which affected our competitiveness. [It] resulted in a reduction in the demand for our loan products. That is why you would have seen a small decline.”

Its loan portfolio dipped to $1.08 billion in 2014 from $1.12 billion a year earlier. James indicated that the company adjusted its loan offerings in 2015 and aims for growth. Already its loans portfolio increased 35 per cent year on year to $1.5 billion during its March first-quarter 2015.

The rise was mainly due to acquisition, as AFS acquired the loan portfolios of Asset Management Company Ltd (AMCL) and Appliance Traders (ATL) Portfolio for a total purchase price of $504 million and realised a gain of $11 million on the transactions, according to first-quarter financials.

It was the first major announcement by AFS since the sale of shares by its former large shareholder Mayberry Investments to financial outfit Proven last December. Microlender AMCL is a subsidiary of Proven.

The AFS board of directors include Rex James, chairman, Marcus James, Neville James, Chris Williams , Peter McConnell, Johann Heaven and Charmaine Boyd-Walker. Last year the previous board was divided in a legal rift between Mayberry Investments directors and Marcus James. The AGM in that year was held behind closed doors and under tight security at the Courtleigh Hotel in Kingston. The AGM on Wednesday, however, was much more relaxed and attended by roughly 30 persons.

“Why are there fewer shareholders at the meeting than last year?” asked minority shareholder Livingston Young to the board in time alloted for questions.

“They are probably at home because they are satisfied with the dividends,” joked Rex James in response.

AFS total shareholders dropped from 312 to 273 year-on-year according to the annual report. Last December PROVEN acquired a 49 per cent stake in AFS for $1.2 billion purchasing shares from a group of investors including Mayberry Investments.

Access made $138 million net profit on $291 million in revenues in its March first-quarter 2015, or 72 per cent higher profit than a year earlier.