ASA International Group (LSE:ASAI), one of the world's largest international microfinance institutions, said its gross outstanding loan portfolio (Gross OLP) rose 12% year-on-year to $604.1m as at 30 June, up 4% on the first quarter.
Pakistan, Ghana and Kenya drove the growth in the second quarter. The group's client base, excluding India, climbed 11% year-on-year to 2.7m, with growth accelerating in June led by Pakistan, Kenya and Nigeria.
Portfolio quality softened slightly, with loans overdue by more than 30 days (PAR>30) rising to 2.4% from 2.0% a year earlier, which the company still called industry-leading. New trade regulations in Uganda were a main driver of the deterioration.
The company's planned exit from India continued at pace, with Gross OLP there down 86% year-on-year to $4.3m.
Since the end of the first quarter, Indian clients fell 70% to 10,000, the branch network shrank 67% to 25 sites, and Gross OLP dropped 42%, leaving what the company described as a minimal negative income statement impact from the unit.
Digital transformation progressed alongside the portfolio shifts, with the enhanced banking platform launched in Tanzania in March now preparing for rollout in Kenya, while implementation began in Nigeria.
"ASA International delivered both resilience and growth in the second quarter, which supports our positive expectations for the second half of 2026," chief executive Rob Keijsers said, citing momentum in Pakistan, Ghana and Kenya alongside continued progress reducing exposure to India.
News Intelligence what this means for the company
ASA International grew its loan book 12% year-on-year to $604.1m in Q2 2026, driven by Pakistan, Ghana and Kenya, while accelerating its exit from India—where the portfolio collapsed 86% to $4.3m. Portfolio quality deteriorated slightly, with loans overdue more than 30 days rising to 2.4% from 2.0% a year earlier, partly due to new trade regulations in Uganda, though management still characterizes the metric as industry-leading.
The 12% loan growth and geographic diversification away from India support the company's strategic repositioning, but the uptick in bad loans—even if modest in absolute terms—signals tightening credit conditions in key markets like Uganda that warrant monitoring as the company scales Pakistan, Ghana and Kenya operations.
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