Profit down 78% at Access Financials despite Q2 increase

Access Financial Services (AFS) Limited recorded consolidated net profit of J$62 million for the six-month period ended September 30, 2020, down 78 per cent from the similar period in 201

Access Financial Services Limited recorded consolidated net profit of J$62 million for the six-months ended September 30, 2020

Net operating income for the six months amounted to $887 million, a decrease of $224 million or 20 per cent, compared to the corresponding period last year.

However, management noted that in Q2 there was an increase of $27 million or six per cent over the June quarter as customers increased their level of borrowing.

The company said it executed back-to-school campaigns in Jamaica and Florida to equip customers’ children with computers for the new digital learning environment.

The performance of the Group reflects the impact of COVID-19 over the past six months, management said.

The directors’ report indicates the company is continuing to “work with customers to resume economic activity.”

Loans and advances now stand at $3.9 billion, a reduction of 11 per cent year over year based on the lower level of disbursements.

The company indicates it was also successful in executing a number of delinquency management strategies to collect on outstanding bad debts.

Operating expenses for the six months period was $805 million, compared to the amount of $825 million in the prior year.

Excluding the allowance for loan losses, operating expenses for the period decreased by $13 million or two per cent year over year, due to the implementation of measures to increase operational efficiency, management outlined.

Total company assets were $5.47 billion as at September 30, compared to the restated amount of $5.31 billion in 2019.

Total liabilities increased by $25 million or one per cent year over year to $3.19 billion and declined by $356 million or 10 per cent since June 30, 2020.

Management said during the quarter, funds were used to settle the maturity of Access’ J$200 million corporate bond in August 2020 and US$1 million senior secured notes.