Q1 2026 Business Update
ASA International Group plc reported a strong start to 2026, with its Gross Outstanding Loan Portfolio reaching USD 583.2 million as of March 31, 2026, a 25% increase year-on-year, driven by growth in Pakistan, Uganda, and Kenya. The client base, excluding India, expanded by 12% to 2.7 million, while portfolio quality remained robust with PAR>30 at 2.0%, slightly up from 1.8% at the end of 2025. Significant progress was made in winding down Indian operations, reducing clients by 75% and the loan portfolio by 76% to USD 7.2 million, generating an accounting gain of USD 11.4 million. The company also successfully launched its enhanced banking platform and digital financial services app in Tanzania.
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ASA International Group plc (LSE: ASAI), one of the world's largest international microfinance institutions, today provides a business operations update for the three-month period ended 31 March 2026.
Highlights
- Portfolio 25% ahead year-on-year, with March growth resumption
The momentum seen in 2025 has continued into 2026 with ASA International having a solid start to 2026, with Gross Outstanding Loan Portfolio (Gross OLP) of USD 583.2m as at 31 March 2026, 25% higher than a year ago. This provides a stronger foundation for the remainder of 2026 given the compounding effect of a larger OLP base. Compared to Q4 2025, the loan portfolio was largely flat, reflecting usual seasonal repayment patterns after the holiday period. As with last year, OLP growth resumed again in March.
Client base expansion in continuing markets
Excluding India, the client base increased by 12% year-on-year to 2.7m and grew 1% during Q1 2026, despite normal seasonal effects. Including India, where operations are being proactively wound down, the Group client base decreased by 2% versus December 2025. Client growth in Q1 2026 was driven primarily by Pakistan, Uganda, and Kenya.
Industry-leading portfolio quality sustained
High portfolio quality was maintained in the first quarter. PAR>30 rose slightly to 2.0% as at 31 March 2026 from 1.8% as at 31 December 2025, broadly in line with the level seen at the end of Q1 2025 (2.2%).
Digital rollout strengthens scalable growth platform
March 2026 marked another major milestone with the successful launch of the enhanced banking platform and digital financial services app in Tanzania, designed to deliver a faster, more seamless client experience and support scalable growth. Building on this progress, preparations for the Kenya rollout later this year have moved into a more intensive phase.
- India wind-down materially reduces exposure and simplifies the Group
Major progress was made towards winding down operations in India ahead of full deconsolidation. As at 31 March 2026, India clients had reduced by 75% year-on-year to 38k, the branch network by 53% to 75, and Gross OLP by 76% year-on-year to USD 7.2m. On-book loans have been fully written down and the off-book portfolio has been deliberately shrunk by 76% versus Q4 2025. In March 2026, a shareholder loan to ASA India was waived and NCDs were redeemed for a nominal value of INR 1, generating an accounting gain of USD 11.4m at Group level, likely to be partially offset by additional restructuring costs.
Rob Keijsers, ASA International CEO, said:
"Q1 2026 demonstrates the underlying strength and discipline of ASA International's platform. Across our continuing operating platform, we delivered solid portfolio performance alongside continued client growth across key markets, with particularly strong momentum in Pakistan and East Africa. Portfolio quality remains robust and among the best in the industry, reflecting the effectiveness of our risk management and long-standing client relationships.
"We also made decisive progress in reshaping and simplifying the Group, while advancing our digital agenda with the successful rollout of our new core banking system and digital financial services platform in Tanzania. These actions strengthen our foundation for sustainable growth, enhance operational resilience, and position us well to expand responsible financial access for millions of underserved female entrepreneurs."
Business Operations Update
| Clients (in thousands) | Delta | Number of branches | Delta | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| End of period | Mar-25 | Dec-25 | Mar-26 | Mar 25 - Mar 26 | Dec 25 - Mar 26 | Mar-25 | Dec-25 | Mar-26 | Mar 25 - Mar 26 | Dec 25 - Mar 26 |
| Pakistan | 671 | 741 | 780 | 16% | 5% | 397 | 405 | 405 | 2% | 0% |
| Sri Lanka | 44 | 46 | 48 | 8% | 4% | 63 | 63 | 63 | 0% | 0% |
| South Asia | 715 | 787 | 827 | 16% | 5% | 460 | 468 | 468 | 2% | 0% |
| The Philippines | 360 | 369 | 362 | 1% | -2% | 424 | 415 | 415 | -2% | 0% |
| Myanmar | 125 | 133 | 136 | 9% | 2% | 91 | 91 | 92 | 1% | 1% |
| Southeast Asia | 485 | 502 | 498 | 3% | -1% | 515 | 506 | 507 | -2% | 0% |
| Ghana | 227 | 245 | 243 | 7% | -1% | 153 | 154 | 154 | 1% | 0% |
| Nigeria | 153 | 165 | 159 | 4% | -3% | 269 | 269 | 269 | 0% | 0% |
| Sierra Leone | 43 | 50 | 49 | 13% | -3% | 49 | 48 | 48 | -2% | 0% |
| West Africa | 423 | 460 | 451 | 7% | -2% | 471 | 471 | 471 | 0% | 0% |
| Tanzania | 291 | 321 | 316 | 9% | -1% | 231 | 244 | 247 | 7% | 1% |
| Kenya | 264 | 312 | 316 | 19% | 1% | 153 | 160 | 170 | 11% | 6% |
| Uganda | 159 | 214 | 222 | 39% | 3% | 133 | 133 | 140 | 5% | 5% |
| Rwanda | 23 | 23 | 22 | -4% | -2% | 37 | 37 | 37 | 0% | 0% |
| Zambia | 29 | 37 | 35 | 23% | -3% | 39 | 55 | 54 | 38% | -2% |
| East Africa | 767 | 907 | 911 | 19% | 0% | 593 | 629 | 648 | 9% | 3.0% |
| Group (Ex-India) | 2,390 | 2,655 | 2,688 | 12% | 1% | 2,039 | 2,074 | 2,094 | 3% | 1% |
| India (total) | 154 | 118 | 38 | -75% | -68% | 159 | 158 | 75 | -53% | -53% |
| Group | 2,544 | 2,773 | 2,725 | 7% | -2% | 2,198 | 2,232 | 2,169 | -1% | -3% |
- Excluding India, total clients increased to 2.7m by the end of Q1 2026, 12% higher than the previous year and 1% higher during Q1 2026, despite normal seasonal effects. Including India, where operations are being proactively wound down, the Group client base decreased by 2% versus December 2025. Growth was primarily driven by increased client numbers in Pakistan, Uganda, Kenya, and Tanzania.
| Gross OLP (in USDm) | Delta | PAR >30 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| End of period | Mar-25 | Dec-25 | Mar-26 | Mar 25 - Mar 26 (USD) | Mar 25 - Mar 26 (CC) | Dec 25 - Mar 26 (USD) | Dec 25 - Mar 26 (CC) | Mar-25 | Dec-25 | Mar-26 |
| Pakistan | 93.2 | 118.1 | 128.9 | 38% | 38% | 9% | 9% | 0.4% | 0.4% | 0.5% |
| Sri Lanka | 5.6 | 6.6 | 7.1 | 26% | 34% | 7% | 9% | 4.4% | 4.5% | 4.0% |
| South Asia | 98.8 | 124.7 | 136.0 | 38% | 38% | 9% | 9% | 0.8% | 0.6% | 0.6% |
| The Philippines | 62.8 | 61.4 | 59.7 | -5% | 1% | -3% | 0% | 7.1% | 6.2% | 6.3% |
| Myanmar | 29.2 | 21.1 | 22.6 | -23% | 34% | 7% | 9% | 0.2% | 0.7% | 0.6% |
| Southeast Asia | 92.0 | 82.5 | 82.3 | -10% | 11% | 0% | 2% | 4.9% | 4.8% | 4.7% |
| Ghana | 70.5 | 141.9 | 128.5 | 82% | 29% | -9% | -5% | 0.2% | 0.9% | 1.3% |
| Nigeria | 12.9 | 18.9 | 18.7 | 46% | 32% | -1% | -5% | 3.6% | 2.8% | 4.2% |
| Sierra Leone | 6.6 | 9.3 | 9.2 | 40% | 40% | 0% | 0% | 10.3% | 5.3% | 6.4% |
| West Africa | 90.0 | 170.0 | 156.4 | 74% | 30% | -8% | -5% | 1.4% | 1.3% | 1.9% |
| Tanzania | 82.3 | 103.2 | 92.6 | 13% | 10% | -10% | -6% | 1.5% | 2.1% | 2.4% |
| Kenya | 38.3 | 47.6 | 50.3 | 31% | 32% | 6% | 6% | 0.3% | 0.3% | 0.3% |
| Uganda | 20.4 | 39.0 | 44.0 | 115% | 121% | 13% | 17% | 0.1% | 0.2% | 0.4% |
| Rwanda | 5.5 | 7.3 | 7.0 | 26% | 30% | -5% | -4% | 4.8% | 8.6% | 11.6% |
| Zambia | 3.4 | 6.3 | 7.5 | 119% | 48% | 19% | 2% | 3.5% | 4.8% | 9.2% |
| East Africa | 149.9 | 203.5 | 201.3 | 34% | 33% | -1% | 2% | 1.2% | 1.6% | 2.0% |
| Group (Ex-India) | 430.7 | 580.7 | 576.0 | 34% | 27% | -1% | 0% | 1.9% | 1.8% | 2.1% |
| India (total) | 34.5 | 30.2 | 7.2 | -75% | -73% | -72% | -71% | 6.0% | 2.8% | 0.7% |
| Group | 465.2 | 611.0 | 583.2 | 25% | 19% | -5% | -4% | 2.2% | 1.8% | 2.0% |
- Across the continuing operating platform, Gross OLP of USD 576.0m as at 31 March 2026 was significantly ahead of the same period in 2025 (+34%) and broadly stable compared to the end of Q4 2025. Major positive contributions came from Pakistan, Uganda, and Kenya. Total Group Gross OLP increased 25% year-on-year to USD 583.2m and decreased 5% compared to the end of Q4 2025.
- PAR>30, including off-book loans and excluding loans overdue for more than 365 days, slightly increased to 2.0% as at 31 March 2026 from 1.8% at the end of December 2025. This still represents industry-leading asset quality and is similar to the level seen a year ago (2.2%). PAR>30 in Q1 was influenced by countries rebuilding their operations, such as Nigeria, Rwanda, Sierra Leone, and Zambia. Outstanding portfolio quality was maintained in Pakistan, Kenya, and Uganda, with PAR>30 of less than 0.5% as at 31 March 2026.
Notes
- All data in this announcement is unaudited
- Constant currency ('CC') implies conversion of local currency results to USD with the exchange rate from the end of March 2025 and December 2025.
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