ASA International Group plc (LSE:ASAI) reported a 20% year-on-year increase in its gross outstanding loan portfolio across continuing markets to $630.6 million in the third quarter of 2026, supported by sustained demand for microfinance lending across Asia and Africa.
The international microfinance institution said its loan portfolio, excluding India, increased 5% during the three months ended 30 September 2026, equivalent to 6% growth at constant currency.
The company’s active client base in continuing markets increased 9% year-on-year to approximately 2.8 million, reflecting continued expansion in Pakistan, Kenya, Nigeria and Tanzania.
However, portfolio quality weakened during the quarter, with the group’s portfolio at risk for loans more than 30 days overdue (PAR>30) increasing to 2.9%, primarily because of operational and economic challenges in Uganda.
ASA International also reported substantial progress in winding down its Indian operations, with the process expected to be completed by the end of 2026.
Gross Loan Portfolio Increases 20% to $630.6 Million
ASA International’s gross outstanding loan portfolio across continuing markets reached $630.6 million at 30 September 2026, compared with $525.3 million a year earlier.
This represented reported growth of 20%, or 24% at constant currency.
On a quarterly basis, the portfolio increased from $599.6 million at the end of June, representing growth of 5%, or 6% at constant currency.
The company attributed the expansion to resilient customer demand and its strategy of adjusting loan sizes to better reflect clients’ working capital requirements.
Pakistan, Ghana, Kenya and Myanmar were among the principal contributors to portfolio growth during the quarter.
Including India, where operations are being discontinued, the group’s gross outstanding loan portfolio reached $634.1 million.
This represented an increase of 14% from $553.9 million at the end of September 2025 and 5% from $603.9 million at the end of June 2026.
At constant currency, the total group portfolio increased 18% year-on-year.
Client Base Expands 9% to 2.8 Million
ASA International reported continued growth in its customer base across continuing markets.
Excluding India, the number of clients reached 2.782 million at the end of September 2026, compared with 2.562 million a year earlier.
This represented an increase of 9% year-on-year and 2% from the 2.725 million clients recorded at the end of June.
The company identified Pakistan, Kenya, Nigeria and Tanzania as the main contributors to customer growth during the third quarter.
Its continuing operations comprised 2,134 branches at the end of September, compared with 2,075 a year earlier.
Including India, the group’s total client base stood at 2.791 million, an increase of 4% year-on-year.
The total branch network comprised 2,150 locations, down 4% from September 2025, reflecting the reduction in Indian operations.
South Asia Loan Portfolio Rises 43%
South Asia delivered the strongest reported year-on-year loan portfolio growth among ASA International’s regional operations.
Gross outstanding loans reached $159.3 million at the end of September, compared with $111.2 million a year earlier.
This represented growth of 43% in US dollar terms and 41% at constant currency.
The portfolio also increased 12% during the third quarter, supported by continued expansion in Pakistan.
The region’s client base rose 18% year-on-year to approximately 877,000, compared with 744,000 in September 2025.
Client numbers increased 4% during the quarter.
The regional branch network expanded to 491 locations, representing an increase of 5% year-on-year.
Portfolio quality remained relatively stable, with PAR>30 increasing slightly to 0.7% from 0.6% at the end of June.
The relatively low level of overdue loans indicates that South Asia maintained comparatively strong portfolio quality while expanding lending activity.
West Africa Portfolio Grows 30% to $174.4 Million
ASA International’s West African operations reported gross outstanding loans of $174.4 million at the end of September.
This represented an increase of 30% from $134.5 million a year earlier.
At constant currency, portfolio growth was 22%.
During the third quarter, gross outstanding loans increased 7% in US dollar terms and 9% at constant currency.
Ghana was among the major contributors to the region’s lending growth.
The West African client base increased 3% year-on-year to approximately 477,000, compared with 463,000 in September 2025.
Client numbers rose 4% during the quarter.
The branch network stood at 486 locations, up 3% year-on-year.
Portfolio quality improved slightly during the quarter, with PAR>30 declining to 1.9% from 2.0% at the end of June.
However, the measure remained above the 1.0% recorded in September 2025.
East Africa Client Numbers Rise Despite Portfolio Quality Pressures
East Africa remained ASA International’s largest region by client numbers, with approximately 927,000 customers at the end of September 2026.
This represented an increase of 8% from 858,000 a year earlier.
The region’s gross outstanding loan portfolio reached $206.6 million, up 14% year-on-year in reported US dollar terms and 20% at constant currency.
However, the portfolio declined 1% during the third quarter in reported currency, although it increased 1% at constant currency.
The region’s branch network expanded to 670 locations, representing growth of 6% year-on-year.
Despite the increase in customers, East Africa experienced a deterioration in portfolio quality.
PAR>30 rose to 4.6% at the end of September, compared with 2.9% at the end of June and 1.4% a year earlier.
The company attributed much of the deterioration to challenges affecting its operations in Uganda.
Uganda Challenges Push Group PAR>30 to 2.9%
ASA International reported an increase in the proportion of loans more than 30 days overdue during the third quarter.
Group PAR>30 reached 2.9% at 30 September 2026, compared with 2.4% at the end of June and 2.0% in September 2025.
The company said the increase was primarily attributable to difficulties in Uganda, where customers have been affected by new trade regulations introduced earlier in the year.
Economic and operational conditions were also affected by an Ebola outbreak and drought.
ASA International has introduced remedial measures intended to stabilise portfolio quality and improve collections.
These include a temporary reduction in lending exposure, strengthening the group lending model and improving branch-level leadership.
The company is also implementing local management changes to reinforce accountability, operational discipline and internal controls.
Management expects these measures to support improvements in overdue loan levels over the coming months.
Excluding the recent deterioration in Uganda, group PAR>30 remained at 2.4%, unchanged from June.
The company’s continuing markets, excluding India, recorded PAR>30 of 3.0% at the end of September, compared with 2.4% three months earlier.
Southeast Asia Portfolio Reaches $90.3 Million
ASA International’s Southeast Asian operations reported gross outstanding loans of $90.3 million at the end of September 2026.
The portfolio declined 8% from $98.1 million a year earlier in reported US dollar terms.
However, at constant currency, the portfolio increased 16% year-on-year.
During the third quarter, gross outstanding loans rose 6% in reported currency and 5% at constant currency.
Myanmar was among the principal contributors to quarterly portfolio growth.
The region’s client base stood at approximately 501,000, compared with 498,000 a year earlier.
Client numbers were broadly unchanged during the quarter.
The branch network comprised 487 locations, down 4% year-on-year.
PAR>30 increased to 5.2% at the end of September from 4.9% at the end of June and 5.0% a year earlier.
The region therefore continued to experience relatively elevated overdue loan levels compared with South Asia and West Africa.
India Wind-Down Nears Completion Following Licence Surrender
ASA International reported further progress in its strategic withdrawal from India.
The company reduced its Indian client base to approximately 9,000 at the end of September, compared with 121,000 a year earlier.
Gross outstanding loans in India declined to $3.4 million from $28.6 million in September 2025.
This represented a reduction of 88% year-on-year.
The Indian portfolio also decreased 21% during the third quarter.
The company confirmed that its operating branch network in India had been reduced to zero.
A further 16 business correspondent branches remained to be transferred, with completion expected by the end of October.
On 31 August 2026, the Reserve Bank of India approved the voluntary surrender of ASA India’s non-banking financial company–microfinance institution licence.
The approval represented a further milestone in the withdrawal process.
ASA International expects to complete the removal of its exposure to India by the end of 2026.
The company said the decision would allow management to concentrate resources on markets offering stronger opportunities for sustainable and profitable growth.
Chief Executive Highlights Continued Growth and Risk Management
ASA International Chief Executive Officer Rob Keijsers said the company’s performance reflected resilient demand for microfinance products across its continuing markets.
“ASA International delivered another quarter of strong underlying growth, with Gross OLP increasing 20% year-on-year and 5% quarter-on-quarter in our markets with our client base expanding to 2.8 million customers. This performance reflects the resilience of demand across our markets and the strength of our operating model, with particularly strong contributions from Pakistan, Ghana, Kenya and Myanmar. We continue to balance growth with disciplined risk management, maintaining overall portfolio quality.”
Keijsers acknowledged the increase in overdue loans but said management had taken action to address the challenges in Uganda.
“While PAR>30 increased during the quarter, this was primarily driven by temporary challenges in Uganda. Remedial actions are already under way and are expected to become visible in the PAR levels in Uganda in the coming months. Excluding Uganda, Group PAR>30 remained broadly stable, highlighting the continuing overall quality of our portfolio. We also made substantial progress in completing the strategic wind-down of our India operations, including the surrender of our licence, allowing us to focus our resources on markets where we see significant opportunities for sustainable, profitable growth. We are encouraged by the momentum in our business, remain confident in the outlook and opportunities for the Group and expect our portfolio to maintain solid growth throughout the remainder of the year.”
ASA International Outlook
ASA International expects its gross outstanding loan portfolio to maintain solid growth during the remainder of 2026, supported by continued demand for microfinance lending across its continuing markets.
The company will focus on expanding lending activity while maintaining disciplined credit risk management.
Pakistan, Ghana, Kenya and Myanmar remain important contributors to portfolio growth, while additional client expansion is expected to support the group’s wider operations.
Improving portfolio quality in Uganda will be a key near-term priority following the increase in overdue loans during the third quarter.
Management expects its remedial measures, including changes to lending practices, collections procedures and local leadership, to become reflected in portfolio risk indicators over the coming months.
The company also intends to complete the remaining stages of its withdrawal from India before the end of 2026.
With its Indian operations substantially wound down, ASA International plans to concentrate resources on markets where it sees opportunities for sustainable and profitable expansion.
Although the company remains confident in its growth prospects, the pace of future lending expansion and improvements in portfolio quality will depend on operating conditions across its markets.
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