Access Financial makes first foreign acquisition
Microfinancing company Access Financial Services Limited is buying a consumer finance firm in Florida, United States, but is holding back on the details of the transaction until the deal receives regulatory approval.
The transaction is expected to be finalised within three months, Access said in a stock market filing. Calls to CEO Marcus James for comment were not returned.
Access Financial operates from 25 branch locations, which includes its subsidiaries. The company made two acquisitions recently — the assets of rival Damark Limited for $180 million and Micro Credit Limited for $80.7 million.
The acquisitions resulted in an increase in the company’s loan book from $2.6 billion to $2.9 billion. But its non-performing loan portfolio grew to 13 per cent of total loans, well above the targeted 8 per cent. The rise in NPLs was due to the acquisition of the outside loan businesses with different risk profiles, James said at the company’s annual general meeting in September.
In its first quarter ending June, Access made net profit of $217 million, up 16 per cent from $188 million in the corresponding period last year. The company continues to post high levels of return on equity at 40 per cent for the June quarter.