Access sees tepid loan disbursements, higher levels of delinquency
Access Financial Services is reporting net profits of $33 million for the three months ended June 2020, down 80 per cent compared to the similar period last year.
The microlender said the performance during the quarter reflect the continuing impact of COVID-19 on its business, as it saw "tepid loan disbursements and higher levels of delinquency."
Loan disbursements for Access were affected by the reduction in economic activity, however, the company said this has since improved with the relaxation of the restrictions implemented by the Government during June 2020.
Loans and advances for the entire group stood at $4.05 billion for the three months ended June 30, 2020, a reduction of two per cent year-over-year based on the lower level of disbursements this quarter, the company said.
Also during the quarter, Access Financial Services’ operations in Florida experienced lower disbursements due to reduced economic activity and the stimulus package offered by the US Government, the company said.
The US Government in May offered US families between US$1,200 and US$2,400 - with more for those with children.
Locally, loan disbursements have also declined for Access Financial.
Nonetheless, some customers have shown “good financial discipline” by making loan payments during the quarter, despite the impact of COVID-19, the company said.
In the meantime, Access Financial said it continues to monitor delinquency levels.
Total assets as at June 30, 2020 was $5.79 billion, compared to the restated amount of $5.37 billion as at June 30, 2019.
Total liabilities increased by $259 million or per cent year over year to $3.55 billion as at June 30, 2020. The increase is primarily attributable to higher debt financing, which was required to support the strong disbursements during the last financial year, Access outlined.
Directors of Access Financial said given the ongoing assessment of the economic fallout and uncertainty surrounding the length of time the pandemic will persist, it is maintaining an increased level of liquidity reflected in the cash and cash equivalents amount of $858 million as at the period end.