Depressed loan activity in its second quarter resulted in a weaker out-turn for ISP Finance Services Limited at the end of second quarter (Q2) ending June 30, 2022.

The microfinance company is listed on the junior market of the Jamaica Stock Exchange. It is managed by chief executive officer (CEO) Dennis Smith and Chairman Clifton Cameron.

Interest income for the company stood at of $113.2 million for the second quarter compared to $114.1 million in Q2 2021, a fall off of $0.9 million.

Net operating income after interest expenses and commissions totalled 101.8 million versus $104.6 recorded in the second quarter of 2021, down $2.8 million or $2.7 per cent.

Net profit after tax for the second quarter was $15.5 million versus $19.5 million, down 21.5 per cent or $4 million compared to the similar quarter last year. Earnings per share for the quarter were $0.148 versus $0.186 in the similar period last year, a reduction of 20.4 per cent.

Operating results for the six-month period presented a more positive picture for ISP.

Interest income for the period ended June 30, 2022 was $217.2 million versus $204.2 million last year, 2021, an increase of $13.5 million or 6.2 per cent year over year.

Net operating income after expenses and commissions was $195 million versus $185.7 million, which was a 5.2 per cent or $9.8 million increase year over year.

Net profit after tax for the six-month period $24.5 million compared to $32.3 million in the similar six-month period ending June 30, 2021, down $7.8 million or 21.9 per cent over the similar period last year.

Earnings per share for the six months stood at $0.233 compared to $0.307 for the six-month period last year, a reduction of 24.2 per cent.

At the end of the six-month period, ISP’s total assets stood at $810.2 million, a 3.3 per cent increase year over year compared to $784.4 in balances at June 30, 2021. Cash and cash equivalents were higher year over year, standing at $66.67 million at June 30 2022, compared to $48.79 million at June 30 2021.

Formed in 2007, ISP Finance offers both business and personal loans. Products include pay advance loans, debt consolidation, auto insurance, motor vehicle repairs, back-to-school or tuition loans and “emergency” bill expenses. Its website indicates that the payment period for the majority of loans is up to 12 months.