ASA International Group reported a 70% rise in first-half net profit on 9 September, helped by one-off gains linked to India and growth in its Loan book. There has been no later trading news from the Microfinance lender, whose third-quarter update had not appeared in the filings we reviewed.

What happened

Reported net profit for the six months to 30 June reached US$45.6m. Excluding US$11.3m of India-related one-offs, underlying net profit rose 42% to US$34.3m, so the underlying growth rate is the cleaner guide to the core business.

Interest and similar income increased 27% to US$172.4m, while net interest income grew 25% to US$139.2m. The gross outstanding loan portfolio rose 12% year on year to US$603.9m, led mainly by Pakistan, Uganda and Kenya. Client numbers rose 6% to 2.7m.

The board declared an Interim Dividend of US$0.069 a share, 43% higher than a year earlier, which was due for payment on 16 October. It also said underlying net profit for 2026 should be in line with or slightly ahead of market consensus of US$70.2m.

ASA International, ticker LSE:ASAI, is a financial services group focused on microfinance. It is a constituent of the FTSE All-Share index, and issued a regulatory notice headed "FTSE All Share index Inclusion" on 9 June.

Why it matters for investors

Asset quality deserves attention alongside the headline growth. Portfolio at risk of more than 30 days, a standard measure of overdue loans, rose to 2.4% from 2.0% a year earlier. The company still described its portfolio quality as industry-leading, in a statement from chief executive Rob Keijsers. (LSE:ASAI)

A move of 40 basis points is small in absolute terms, but it matters for a lender serving low-income customers across several emerging markets. In our analysis, the trend in this ratio could be as important as loan growth when the next update arrives.

The profit guidance also sets a clear yardstick. First-half Underlying Profit of US$34.3m represents about 49% of the US$70.2m consensus, which implies the second half needs to deliver a broadly similar contribution, according to our calculation.

Currency is a further consideration. The group reports in US dollars, pays its dividend on a dollar basis and earns income in a range of emerging-market currencies, so reported returns for London shareholders can differ from local performance.

How the shares have performed

The most recent dated price we could retrieve was 226p on 11 August, from StockAnalysis, when the shares fell 3.83% on the day. That quote predates the half-year results, and we could not obtain a closing price for today, so it should not be read as a current valuation.

At that price the company was valued at about £226m, within a 52-week range of 113p to 297p. The site showed a dividend of 14p a share and a Yield of 5.98%, before the new interim payment.

Three analysts tracked by the site had a consensus notable Investment rating and an average target of about 339p as at that date. Coverage is thin, so one change of view could move that average noticeably.

What to watch next

The company published a third-quarter update on 21 October last year, according to a filing dated that day, while this year's second-quarter update came on 30 July. A similar update could therefore be close, although we found no confirmed date for it.

Investors will likely focus on whether portfolio at risk stabilises, how lending in Pakistan, Uganda and Kenya develops, and whether the board repeats its profit guidance. Recent filings since the results have been limited to a director dealing notice on 28 September and a holdings notice on 1 October.