The Caribbean Information and Credit Rating Services (CariCRIS) has upgraded the credit ratings for microcredit outfit Access Financial Services Limited (AFS) which recently surpassed $8 billion in consolidated assets.

The microcredit company received a one notch upgrade for its credit rating to CariBBB (local currency) and CariBBB– (foreign currency) on the regional scale with its Jamaican rating upgraded to jmA– (local currency) and jmBBB+ (foreign currency) on the national scale. The outlook for AFS was also maintained at stable.

“The ratings of AFS reflect the group’s continued favourable market position within the microfinance sector, underpinned by its longstanding history and good brand equity,” CariCRIS stated in its release.

CariCRIS added, “Sustained growth in AFS’ earning asset base alongside good asset quality, despite some deterioration, and improved financial performance, marked by income and profitability growth, further bolster the ratings. Moreover, adequate capitalisation and liquidity levels together with a satisfactory governance structure and risk management practices also drive the ratings.”

CariCRIS assigned initial credit ratings to AFS in November 2022 which included CariBBB- (local currency) and CariBB+ (foreign currency) on the regional scale and jmBBB+ (local currency) and jmBBB (foreign currency) on the Jamaican rating scale.

CariCRIS noted that this recent upgrade was attributed to an improvement in AFS’ financial risk profile over the past year along with its consistent loan growth. AFS has in turn grown its total income for the fourth-consecutive year and net profit for a second-consecutive year. CariCris even noted that AFS’s net profit for the March 2025 financial year surpassed its own forecasts.

AFS’s consolidated interest income improved 14 per cent to $2.54 billion with total income increasing nine per cent to $2.55 billion. Despite increases in staff costs and other operating expenses, total operating expenses marginally increased from $1.769 billion to $1.771 billion due to an eight per cent dip in allowance for credit losses to $443.24 million. This left the group’s profit before tax (PBT) at $771.85 million, a 36 per cent increase over the $571.10 million in the 2024 period. Consolidated net profit increased 48 per cent from $340.18 million to $503.95 million.

AFS’s core Jamaican business had a 13 per cent increase in interest income to $2.48 billion with total income rising 10 per cent to $2.17 billion. Although one per cent increase in total operating expenses to $1.395 billion, PBT increased 30 per cent to $774.80 million with net profit growing 31 per cent to $513.32 million.

AFS’s United States segment under Embassy Loans Inc saw a 10 per cent rise in interest income to $137.08 million with the subsidiary recording a PBT of $2.05 million compared to a loss before tax of $24.15 million. This is the first full year that Embassy has reported a PBT after the Florida firm was acquired by AFS in December 2018.

“Nonetheless, AFS’s small size and high-risk business model with limited revenue diversification, together with concentrated sovereign risk exposure, constrain the ratings. These factors can temper AFS’s growth potential and overall profitability in the year ahead, notwithstanding generally good economic conditions in Jamaica,” CariCRIS added.

AFS’s consolidated balance sheet grew 14 per cent to $8.11 billion for its March 2025 financial year as its loans and advances increased eight per cent to $6.17 billion while cash and cash equivalents doubled to $1.02 billion. Total liabilities grew 13 per cent to $4.76 billion as the company’s loan payables balance 14 per cent to $3.99 billion due to the company issuing a $498.84 million bond. Consolidated shareholder’s equity improved 15 per cent to $3.35 billion.

AFS focusing on business loans

AFS’s core Jamaican loan book has continued to grow improve over the last five years following the COVID-19 impact. AFS’s loan book hit $3.88 billion in March 2020 before it dipped to $3.61 billion in the subsequent year. AFS’s loan book grew to $4.44 billion in March 2023 before reaching its new peak of $5.81 billion in March 2025. Despite 90 per cent of AFS’s loan book being personal loans worth $5.95 billion, the company has been growing its business loan portfolio. Business loans grew 22 per cent from $496.23 million to $607.16 million for the March 2025 financial year. This is nearly twice the $314.05 million figure reported in March 2023 when business loans represented less than seven per cent of the Jamaican loan book.

“During the year, heightened focus was placed on meeting the changing needs of our business loans customers. Among the steps we took was forging a partnership with the Jamaica Business Development Corporation to provide business development training for our MSME clientele, which proved to be a strategic enabler driving the commercial imperative to write bigger loans more often,” said Acting Chairman Michael Shaw in the company’s 2025 annual report.

AFS is currently under consideration by the IDB Invest, a member of the Inter-American Development Bank, for an unsecured loan of up to $774.70 million. This funding would support the company’s objective of expanding its micro, small, and medium-sized enterprise portfolio. This loan facility would be structured as a senior unsecured instrument with a tenor of up to seven years, including a one-year moratorium period.

AFS’s first quarter ending June 30 saw its consolidated interest income rise nine per cent to $648.60 million with total income increasing seven per cent to $610.40 million. Despite a three per cent rise in operating expenses to $464.37 million, PBT grew 12 per cent to $182.95 million. After accounting for an exceptional item of $27.68 million and taxes, AFS’ consolidated net profit improved 34 per cent to $134.76 million.

AFS’s consolidated asset base decreased four per cent over the quarter to $7.79 billion with loans and advances at $6.21 billion and cash at $663.87 million. Total liabilities and shareholder’s equity was $4.30 billion and $3.49 billion, respectively.

AFS’s stock price closed Thursday at $17.93 which leaves it up eight per cent in 2025 with a market capitalisation of $4.92 billion. AFS paid a $0.22 dividend ($0.12 for March 31 and $0.10 for June 30) totalling $60.39 million on August 29 to shareholders on record as of August 15.

Access Financial founder Marcus James returned from his one-year leave of absence on July 1, but Shaw continues to chair the company and subsidiary board. Access Financial celebrated its 25th anniversary in September after the company began operations in September 2000. AFS has 17 locations in Jamaica with 184 full-time employees. AFS was the first listed company on the JSE’s Junior Market in October 2009.