ASA International Group (LON:ASAI) reported a sharp improvement in profitability and portfolio growth in 2025, with management pointing to sustained operational momentum, industry-leading asset quality, and early benefits from scale as key contributors. On the company’s full-year results webcast, Group CEO Rob Keijsers said the business delivered “an outstanding year in 2025, with our profits doubling and impact scaling across our operating markets,” alongside a strengthened balance sheet.
Client and portfolio growth alongside improved asset quality
Keijsers said the group’s client base increased 10% in 2025 to 2.8 million. The outstanding loan portfolio (OLP) rose to $611 million, representing 33% growth versus the prior year. The company emphasized that growth was not achieved at the expense of credit quality, with PAR 30 improving to 1.8% at the end of 2025. Keijsers described this as “an industry-leading level and testament to the strength of the ASA Model.”
On regional performance, Keijsers said Africa drove much of the OLP expansion, with East Africa the largest segment and growth across countries in the first half. In West Africa, he highlighted Ghana’s strong contribution, driven by operational growth and the appreciation of the Ghanaian cedi. He also noted growth in Nigeria and Sierra Leone “given the historic performance issues seen in these two countries.”
In South Asia, Keijsers said OLP growth occurred despite an “intentional shrinkage” in India as ASA works toward deconsolidation. He said Pakistan and Sri Lanka grew strongly, with the two countries “now benefiting from refreshed local leadership in place.” In Myanmar, he said reported dollar figures reflected a change in exchange rate methodology rather than operating weakness, noting that Myanmar’s gross OLP fell 23% on an actual basis but increased 32% on a constant currency basis. Keijsers also referenced “tremendous resilience” among staff and clients following a “devastating earthquake” earlier in 2025.
Profitability nearly doubled; dividend increased
Keijsers said reported net profit rose 98% to $56.5 million in 2025, including hyperinflation accounting and impairments related to India. Excluding those items, he said underlying net profit was $57.2 million, up 94% year-over-year. Return on equity increased to 44% in 2025 from 33% in 2024, according to management.
Total comprehensive income increased to $73.6 million from $21 million in 2024, which Keijsers attributed in part to a positive foreign exchange impact in the FX translation reserve.
On shareholder returns, Keijsers said the company recommended a final dividend of 9.5 cents per share based on underlying net profit, implying a full-year 2025 dividend of 14.3 cents—double the amount paid for 2024.
Income, costs, and operating leverage
New Group CFO Geert Embrechts, presenting his first results after joining in February, said income rose by almost 40% year-over-year, driven by asset growth and margin improvement. He said gross yield increased to 48.2% due to “a positive volume mix effect” as the company grew more in higher-yield subsidiaries, while funding rates remained stable. As a result, net interest margin increased by nearly four percentage points to almost 40%, he said.
Embrechts said other operating income declined versus 2024, but the prior year included a one-off $3 million gain tied to a loan assignment agreement with ASA Myanmar lenders. Excluding that item, he said other operating income was broadly flat.
On expenses, Embrechts said costs rose 26% year-over-year, primarily reflecting business expansion, technology investments, and the impact of Ghana’s appreciating cedi, which he said amounted to “more than $5 million.” The cost-to-income ratio improved to 56.8% in 2025 from 61.4% in 2024, which he attributed mainly to interest income growing faster than costs.
In Q&A, Embrechts said he would “label” approximately 20% to 25% of the cost increase as attributable to investments in digital and transformation initiatives, while also citing branch and headcount growth. He did not provide a detailed breakdown, noting it went “a bit beyond” what he wanted to disclose.
Both Keijsers and Embrechts highlighted operating leverage. Keijsers said revenue growth outpaced cost growth by 37 percentage points using an operating jaws metric, adding that the business was “simply put[ting] more load on the system.”
Digital transformation: “human-led technology” and productivity targets
Management positioned the ongoing technology program as central to resilience, compliance, and scalability, while maintaining the group’s high-touch operating model. Keijsers described the approach as “human-led technology,” aimed at removing manual steps so loan officers can spend more time with clients.
Keijsers said the group is implementing a Temenos-based T24 core banking system to replace an in-house platform nearing end of life. He said the system strengthens resilience and helps meet regulatory requirements, including in markets where the company is pursuing deposit-taking licenses.
He also said a loan officer app is expected to streamline onboarding and applications by reducing paperwork. Management is exploring a reduction in meeting frequency from weekly to biweekly, noting this is already the case in Pakistan and Myanmar, which Keijsers said have “excellent PAR 30 levels.” He suggested a longer-term productivity opportunity: moving from roughly 300 clients per loan officer to 600, which he said would enable more efficient scaling while preserving face-to-face time.
On rollout progress, Keijsers said Pakistan, Ghana, and Tanzania have already migrated, with digital apps live in Ghana and Tanzania. Kenya is planned for 2026, and Nigeria for the first half of next year, which he said would bring coverage to nearly 70% of the client base.
Responding to a webcast question, Keijsers said hardware costs have risen due to the “AI boom,” but he characterized the impact as manageable and included in budgets for next year.
Funding, capital allocation, and outlook
On funding, Embrechts said the group’s funding position increased to $710 million at the end of 2025 from $500 million a year earlier, with growth in nearly every category except microfinance loan funds. He said local deposits increased in line with strategy, with a greater focus going forward on fixed deposits, and noted Ghana’s currency appreciation contributed to deposit growth. He said the funding pipeline for 2026 stood at $261.6 million, describing it as robust, and highlighted a “favorable maturity profile” with term loan maturities exceeding the typical six-month client loan tenure. He also said FX risk on liabilities used for lending is minimal because most funding is hedged or in local currency.
On capital allocation, Embrechts said the board had updated the capital allocation framework, including evaluating country-level ROE (adjusted where needed for capital adequacy) and total comprehensive income. He said the group is assessing countries that are “over-capitalized” and is seeking to repatriate capital to the head office level and, where possible, redistribute it to shareholders.
Keijsers also discussed strategic priorities, saying ASA has distilled its existing strategy into six priorities for 2026 and beyond: client journey, digital transformation, operational excellence (an “ASA 2.0” model), deposits (including pursuing deposit-taking licenses), disciplined capital allocation, and selective new country expansion. He said the company joined the Client Protection Pathway as part of its sustainability and responsible lending efforts.
In the question session, Keijsers said January and February results showed “growing profitability levels” and that the company had not yet seen an operational impact from the conflict in the Middle East. However, he noted higher petrol prices could increase pressure on cost of living and potentially affect inflation and foreign exchange rates. He said management is monitoring developments closely and aims to remain “cash rich.”
On competition, Keijsers said fintech lenders are active in some markets but tend to focus on short-term personal lending with very high interest rates and high non-performing loans. He argued the company’s community-based, face-to-face model—augmented by technology—allows it to charge lower rates and retain client relationships.
Finally, Keijsers provided an update on India, where ASA is working to deconsolidate. He said operational wind-down is progressing, with “two-thirds of the branches, of staff, of clients” reduced in Q1 2026. He said conversations with the Reserve Bank of India are ongoing and that the company expects an imminent response, with the aim of concluding the process before the end of 2026.
About ASA International Group (LON:ASAI)
ASA International is one of the world’s largest international microfinance institutions, providing small, socially responsible financial services to low-income entrepreneurs, most of whom are women, across Asia and Africa. The company’s purpose is to reduce poverty and enable female empowerment through its mission of enhancing socio-economic progress of low-income entrepreneurs by increasing financial inclusion.
As at 31 December 2023, ASA International served 2.3m million clients in 13 countries, with 2,016 branches and 13,433 staff.
