Microfinance institution, Access Financial Services, plans to continue on its aggressive acquisition path for the remainder of the year into next year, as it seeks to cement its place as market leader in providing financial services to microentrepreneurs and individuals underserved by traditional providers.

The company recorded growth of 24 per cent in its loan portfolio for its financial year ending March 2017, an increase from $2.11 billion to $2.62 billion year over year. The growth in the loan portfolio also led to improved net profit after tax, which climbed from $599 million in 2016 to $678 million for the financial year end 2017.

Revenues of the company also increased to $1.40 billion.

Access Financial’s 2017 results reflect the highest net profit to date of $678 million, an increase of $79 million or 13 per cent when compared to the previous financial year which spanned 15 months.

Earlier this year Access Financial successfully acquired the loan portfolio, fixed assets and trade name of Micro Credit Ltd and before that signed a $180-million deal for Damark Ltd, a company primarily serving the public sector with loans ranging from short- to medium-term tenures and with low average balances.

Damark’s purchased loan book represents eight per cent of net loans and advances for Access Financial.

In its report to shareholders, Access Financial said the growth was achieved primarily through our core business lines, but added that the loan and hire purchase portfolios acquired in 2015 and 2016, have performed well for the company, contributing to overall loan portfolio growth.

Access Financial also recorded an increase in total assets of $551 million or 22 per cent totalling $3.1 billion at the end of the financial year.

“Continued growth will see us taking advantage of organic and inorganic opportunities to grow our loan portfolio, expanding our share of the microfinance market, and extending our reach in the region,” Chief Executive Officer Marcus James told shareholders in the company’s annual report.

He added that the microfinance company will continue to maintain a “lean and operationally efficient organisation”, driven by technology and supported by a highly motivated team.

Key strategies implemented also assisted in Access Financial reducing unpaid debt of clients by $42 million or 25 per cent for the financial year under review. Access noted that the decline in credit losses also reflected enhanced credit collection machinery.

As at March 2017, the company’s total debt was $1.1 billion — an increase of $102 million or 10 per cent compared to March 2016. Access Financial’s equity base as at March grew to $1.7 billion, which represents an increase of $500 million or 45 per cent when compared to the prior period.

The return on average equity was 46 per cent relative to the 15-month prior period ended March 2016 of 59 per cent.