ASA International Group
Annual Report and Accounts
2024
A return to
sustainable
growth
Who we are
ASA International is one of the world’s largest
international microfinance institutions
providing small, socially responsible financial
services to low‑income entrepreneurs, most
of whom are women, across Asia and Africa.
Strategic Report
Financial
review
ESG report
Our
strategy
51
16
23
Chair’s
statement
06
Group CEO
statement
08
Corporate governance report
85 Chair’s introduction
86 Board of Directors
88 Executive Committee
89 Country Heads
91 Board activities
92 Leadership from the Board
94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
127 General information
128 Independent auditor’s report to the
members of ASA International Group plc
137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit and loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
205 Alternative performance measures
207 List of abbreviations
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63
Environmental responsibility and resilience
Visit our website:
www.asa-international.com
Contents
Find the impact highlights on page 12
Clients
+8%
2024: 2.5m
2023: 2.3m
Branches
+6%
2024: 2,145
2023: 2,016
2024 highlights
ASA International is listed on the main market
of the London Stock Exchange (ticker: ASAI).
Outstanding Loan Portfolio (USD)
+21%
2024: 446.6m
2023: 369.2m
Gross Outstanding Loan Portfolio (USD)
+22%
2024: 458.6m
2023: 377.2m
Accelerating growth
Highlights
• ASA International delivered strong operational
performance in 2024 as the loan book grew
following a sustained increased demand from
clients. Outstanding Loan Portfolio (‘OLP’)
increased year-on-year by 21% to USD 446.6m
from USD 369.2m, predominantly driven by
improved performance in Pakistan, Ghana,
Tanzania, Kenya, Myanmar and Uganda.
• This operational performance translated into
materially improved profitability in 2024 with
net profit increasing by 226% to USD 28.5m
from USD 8.8m in 2023.
• Net profit for the year includes both the net
negative impact of USD 3.9m (2023: USD 5.4m)
from hyperinflation accounting for Ghana and
Sierra Leone, as well as a one-off gain of
USD 3.0m related to third party loan assignment
in Myanmar.
• High portfolio quality was maintained alongside
OLP growth. PAR>30 remained broadly stable
at 2.2% as at 31 December 2024 compared to
2.0% as at 31 December 2023
1
. This period saw
some portfolio quality deterioration in the
Philippines following one of the most severe
typhoon seasons, a higher PAR>30 in Sierra
Leone as a result of lower collection efficiency
and low portfolio quality in India. In contrast,
Myanmar, Ghana, Kenya and Uganda recorded
outstanding portfolio quality, with PAR>30 less
than 0.5% as at 31 December 2024.
• Total equity increased to USD 96.5m as at
31 December 2024 from USD 76.6m as at
31 December 2023, of which the operating
currency devaluation had a negative impact
of USD 4.3m in 2024 (2023: USD 24.1m) to
the foreign currency translation reserve. This
contributed to total comprehensive income
growing to USD 22.1m in 2024 compared to
a loss of USD 16.0m in 2023.
• Total funding increased to USD 499.3m as at
31 December 2024 from USD 424.2m at the
end of 2023 driven by a stable debt sourcing
profile, supported by growth in both local
deposits and debt funding.
• A final dividend of USD 0.041 per share is being
recommended by the Board of ASA
International, implying a total dividend of
USD 0.071 per share for 2024 and a 25%
dividend payout ratio.
PAR>30 days
+0.2ppt
2024: 2.2%
2023: 2.0%
Profit before tax (USD)
+97%
2024: 63.5m
2023: 32.2m
Net profit (USD)
+226%
2024: 28.5m
2023: 8.8m
Recognition
ASA Uganda ASA Ghana
• Voted to the top 101 club of
the fastest growing mid-sized
companies in Uganda based
on revenue.
• Selected as the First Ranked Company of the
NBFI sector in the Ghana Club 100 Awards.
Overall 31st best in the country.
Find all the awards we received in 2024
on our website:
www.asa-international.com/about-us/our-awards/
1 PAR refers to ‘Portfolio at Risk’. PAR>30 is the percentage of
outstanding customer loans with at least one instalment payment
overdue 30 days, excluding loans more than 365 days overdue,
to Gross OLP including off-book loans.
Strategic Report
1
ASA International Group plc
Annual Reports and Accounts 2024
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asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
Company overview
ASA International is a microfinance institution
with operations in Asia and Africa.
Clients
2.5m
South Asia – 878,334
South East Asia – 474,949
West Africa – 416,351
East Africa – 743,518
Branches
2,145
South Asia – 618
South East Asia – 489
West Africa – 471
East Africa – 567
Outstanding
Loan Portfolio
USD 446.6m
South Asia – USD 130.5m
South East Asia – USD 83.9m
West Africa – USD 84.8m
East Africa – USD 147.3m
Our clients are in services, trading,
manufacturing and agriculture.
Our clients
Our clients are low-income, mostly female
micro-entrepreneurs over the age of 18, who earn
on around USD 3-5 per day. They typically cannot
access credit from traditional banks to start or
grow their businesses. Clients are engaged in
services, trading, manufacturing, and small-scale
agriculture, mostly in urban and semi-urban areas.
We operate through a branch-based model,
where loan officers meet clients regularly in group
meetings. Branches are located in or near the
communities where clients live and work, and
they serve as the hub of the client ecosystem.
In 2024, ASA International averaged 1,172 clients
per branch and 292 clients per loan officer.
Our colleagues
As of 31 December 2024, ASA International
employed 14,232 people. Most join after
graduation, with ASA International as their first
employer.
Local field staff are trained in-house and work
closely with experienced senior managers who
provide on-the-job coaching and mentoring. Over
time, they can be promoted to more senior roles.
Our strict operating procedures ensure that
services are delivered responsibly and help prevent
clients from over-borrowing.
Within our risk control framework, branch
staff—along with area, regional, and district
managers—form the first line of defence. They are
responsible for client retention and managing credit
risk at the field level.
Read more about colleagues on page 57
Our products and services
ASA International provides small socially responsible
loans, without joint liability, for primarily income-
generating activities. Our operating subsidiaries
offer various collateral-free loans to start or grow
businesses, including small business/MSME loans.
Most loans have a duration of six to twelve months,
with an average disbursement of USD 283. In
principle, clients must fully repay their loan before
applying for a new one. Eligibility is based on need,
creditworthiness, and business potential, though
exceptions are made for high-performing clients.
Each loan cycle has a maximum increment and loan
limit. Follow-on loans are typically 20% to 50%
larger than the previous one. Where customary
and permitted under local licences, we collect a
security deposit.
We regularly benchmark our interest rates against
comparable providers in each country and aim to
charge average market rates, depending on the
product, country, and loan term.
In countries where we hold a deposit-taking licence,
we may also offer savings products.
Over the coming years, a core part of our strategy
is to gradually roll out digital financial services. This
will include online loans, accounts, payments, and
savings products—where we hold the appropriate
licenses—as well as other digital value-added
services designed to support the growth of our
clients’ small businesses.
Find our Key Performance Indicators (KPIs) on page 21
Read more about our operational model
on page 11 and the strategy on page 16
Strategic Report
2
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asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
Read more on page 34 Read more on page 30Read more on page 36 Read more on page 32
See our website for more information
www.asa-international.com
Company overview (continued)
Where we
operate
Corporate head offices:
Amsterdam, the Netherlands
Dhaka, Bangladesh
Registered head office:
Worthing, West Sussex, United Kingdom
Country head offices
West Africa East Africa South Asia South East Asia
Branches
471
Nigeria: 269
Ghana: 153
Sierra Leone: 49
Clients
416k
Outstanding Loan
Portfolio (USD)
84.8m
Branches
567
Tanzania: 221
Kenya: 145
Uganda: 125
Rwanda: 37
Zambia: 39
Clients
744k
Outstanding Loan
Portfolio (USD)
147.3m
Branches
618
Pakistan: 380
India: 175
Sri Lanka: 63
Clients
878k
Outstanding Loan
Portfolio (USD)
130.5m
Branches
489
Philippines: 400
Myanmar: 89
Clients
475k
Outstanding Loan
Portfolio (USD)
83.9m
Strategic Report
3
ASA International Group plc
Annual Reports and Accounts 2024
Discover more
asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
Growth with purpose
Our purpose Assessed through outcome indicators
Reducing poverty
and enabling female
empowerment
See our purpose in action on page 7
Financial inclusion Reduction of poverty Female empowerment
70%
of clients accessing a financial
service for the first time
94%
of clients increasing their
daily income level
89%
increase of share in family
income by females
94%
understanding of financial
management improved
94%
living conditions improved
82%
increase of leadership or
decision-making role within
household or community
Read more about how these indicators are calculated on pages 205 and 206
Find our business Key Performance Indicators (‘KPIs’) on page 21
Inspired
by our vision
Achieved through
our mission
Just and financially
inclusive societies.
Enhancing socioeconomic progress of
low-income entrepreneurs by increasing
financial inclusion.
Supported by strategic priorities
Increase
financial inclusion
Financial inclusion is enhanced
by broadening loan coverage,
boosting loan volumes, and
extending reach.
Offer digital channel and
digitise internal processes
A digital channel complements
the high-touch model, while
digitising internal processes
boosts efficiency.
Offer digital products
and services
Offering digital and value-added
products and services, attracting
new clients. Deposit-taking
licences are prerequisites for
broadening products and services.
Read more about our growth strategy on page 16
4
ASA International Group plc
Annual Reports and Accounts 2024
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asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
Strategic Report
Growth with purpose
(continued)
Delivered via our operational model
• Enabling cost efficiency, quick decision-making,
replicability, and high-touch client engagement
through a decentralised, standardised, and
sustainable model.
• Reinforcing our approach with socially
responsible services, a diversified risk profile,
a proven credit methodology, and a highly
scalable model.
• Addressing the demand for loans and savings
while expanding into digital financial services
over time.
• Driving stakeholder value through sustainable
growth and financial returns while maintaining
a strong commitment to our social mission.
Read more about our operational model on page 11 and our strengths on page 10
Committed to sustainable and responsible practices
• Safeguarding and engaging with stakeholders.
• Implementing measures to mitigate and adapt
to climate change.
• Contributing directly to the Sustainable
Development Goals
Read more in our ESG report on page 51
Underpinned by values:
Teamwork
Embraces a supportive
environment that encourages
collaboration and knowledge
sharing, empowering all team
members to achieve common goals.
Professionalism
Emphasises responsible,
reliable and accountable
leadership. It promotes
efficient operations, ownership
of roles and continuous learning.
Integrity
Embodies consistency, trust,
transparency, respect and
equality. It involves upholding
high moral standards and
treating others fairly.
Read more about how our values are part of our culture on page 59
5
ASA International Group plc
Annual Reports and Accounts 2024
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asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
Strategic Report
A return to
sustainable growth
This growth is a testament
to the resilience and
scalability of our business
and operational model
as well as the dedication
of our teams across all of
our markets.”
Chair’s statement
2024 has been a defining year for ASA
International, marked by strong operational
growth and a significant improvement in financial
performance. After a challenging few years, our
business has rebounded, with profits more than
tripling compared to 2023 while we have
maintained high portfolio quality. This growth is a
testament to the resilience and scalability of our
business and operational model as well as the
dedication of our teams across all of our markets.
Moreover, the strength of the Company’s
performance in 2024 enabled the Directors to
resume the dividend policy, thereby reinforcing
investor confidence and underlining the Directors’
confidence in ASA International delivering
sustainable financial growth going forward.
Board and leadership transitions have been
significant the past year. In October 2024, Karin
Kersten announced that she would step down as
ASA International’s Chief Executive Officer. She
was succeeded by Rob Keijsers, previously our
Chief Digital and Information Officer, as Interim
CEO. After an interim period, Rob was appointed
Group CEO on 1 April 2025. During the interim
period, Guy Dawson stepped down as Chair,
remaining on the Board as a Non-Executive
Director, and I transitioned from Independent
Non-Executive Director to Executive Chairman to
ensure continuity. From 1 April 2025, I assumed the
role of Non-Executive Chairman. We were pleased
to welcome Sheila M’Mbijjewe as an Independent
Non-Executive Director; her extensive regulatory
experience with the Central Bank of Kenya brings
valuable contributions to our overall governance
and oversight.
The Directors remain focused, as a key priority,
on investing in executive leadership. We have
strengthened our Executive Committee membership
at the Group level and have made a number of local
leadership appointments of qualified and skilled
professionals who will continue to drive our growth
agenda as well as support our transition to
microfinance banking and digital financial services.
These changes reflect our commitment to strong
governance and a corporate culture that values
accountability, expertise, and innovation.
Our digital strategy continues to be central to
our strategic development, and I am proud of the
progress made this year. The successful migration
of over 600,000 clients in Pakistan to our new
Core Banking System in early 2024 reinforces
our confidence in expanding these capabilities
to Ghana and Tanzania in 2025.
During the year, I have had the privilege of
interacting with a number of our entities, engaging
directly with our clients, colleagues, and
stakeholders. These have reaffirmed to me the
impact of our work and the dedication of our
teams, who continue to deliver high levels of
service in often challenging environments.
On behalf of the Board, I extend my gratitude
to our employees for their unwavering dedication.
Also I wish to thank our clients, whose trust drives
us forward, as well as our lenders and shareholders
for their continued support.
Looking ahead, we remain focused on building
long-term, sustainable growth. With a strengthened
leadership team and a clear strategic direction,
we are well positioned to capitalise on new
opportunities and deepen our market presence
and impact in the years to come.
Chris Low
Chairman, ASA International Group plc
23 April 2025
Strategic Report
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asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
PROFESSIONALISM INTEGRITY INCREASE FINANCIAL
INCLUSION
Feature story – Our clients
What our people say
Savings for stability: How ASA Myanmar
empowers small business owners
Saving and investing
smartly are key to
financial stability.
MRS. PARAIYAR
CLIENT ASA MYANMAR
For small business owners in Myanmar, financial stability is
crucial, especially during economic uncertainty. ASA Myanmar’s
voluntary savings programme has become a trusted partner,
helping entrepreneurs build resilience and plan for the future.
Mrs. Paraiyar, a dairy farm owner, joined ASA
Myanmar two years ago, taking out a loan and
committing to save regularly. Today, she has
expanded her farm, setting aside 12% of her loan
amount each year. “Everyone should save at least
10% of their income to achieve their goals,” she
says. “Saving and investing smartly are key to
financial stability.”
During Myanmar’s economic instability, her savings
helped cover rising costs without taking on more
debt. Like many ASA clients, she sees savings as
vital for security and growth.
Mrs. Paraiyar’s experience is shared by many ASA
clients. Ms. Than Than Sint, a banana shop owner,
previously depended on high-interest loans from
local village moneylenders to navigate financial
hardships, but now has doubled her savings,
providing stability for emergencies. “I can withdraw
my savings for health expenses or unforeseen
challenges,” she says.
For Ms. Thae Su Mon, saving with ASA Myanmar
has meant reinvesting in her business and inspiring
others. “Not only do we receive a high annual
interest rate, but when I withdraw my savings,
I can expand my business.”
Meanwhile, Ms. Khin Hnin Wai has used her
savings to ensure her children’s education is secure.
“I can withdraw my savings quickly to pay school
fees,” she shares. She also appreciates the ease of
voluntary savings, depositing money during loan
collection days without needing to visit a branch
like a traditional bank.
These stories illustrate the impact of ASA
Myanmar’s deposit-taking services in fostering a
culture of financial resilience. By making savings
accessible and convenient, ASA Myanmar helps
individuals build security, navigate challenges and
plan for the future. For Mrs. Paraiyar and others,
saving has become key for building a stable,
prosperous life. “It’s not just about today, it’s about
securing the years ahead,” she says.
Voluntary savings
to OLP in Myanmar
34%
SDGs Values Strategy
7
ASA International Group plc
Annual Reports and Accounts 2024
Discover more
asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
Strategic Report
Regaining strength,
realising potential
Group CEO statement
Introduction
ASA International saw strong operational growth
throughout 2024 as demand for our products from
clients remained robust. Total number of clients
surpassed 2.5m and Gross OLP increased by 22% by
the end of 2024 with Pakistan, Ghana, Tanzania,
Kenya, Uganda and Myanmar being the main drivers
for this growth. Our proven, low risk model ensured
that this loan growth was not achieved at the expense
of portfolio quality, with PAR>30 remaining low at
2.2% for the whole company at the end of the year.
This operational performance also translated into
significantly improved profitability with net profit
more than trebling versus 2023 (2024: USD 28.5m;
2023: USD 8.8m). The resumption of our dividend
policy was also a particular highlight as we return to
a more normalised operating environment.
From an operational footprint standpoint and in line
with our strategy, the number of branches increased
to 2,145 as at 31 December 2024 from 2,016 as at
31 December 2023, which reflects the opening of
129 net new branches across the various operating
countries. Client numbers grew by 8% compared to
2023 as demand for loans increased in most markets.
As a result of improved business trading conditions
for clients as well as an expanded operational
footprint, Gross OLP grew to USD 458.6m at the
end of December 2024 from USD 377.2 m at the
end of December 2023. This growth in Gross OLP
was not made at the expense of portfolio quality
with this improving in most markets. PAR>30 days
remained broadly stable at 2.2% as of 31 December
2024 compared to 2.0% in 31 December 2023.
Regional footprint
ASA International continues to operate across four
main regions comprising 13 countries. East Africa
comprises operations in five countries: Tanzania,
Kenya, Uganda, Rwanda and Zambia. West Africa
comprises operations in three countries: Ghana,
Nigeria, and Sierra Leone. South East Asia comprises
operations in two countries: The Philippines and
Myanmar. South Asia comprises operations in
three countries: Pakistan, India and Sri Lanka.
East Africa
East Africa’s operational result improved in 2024
compared to 2023 with OLP increasing 40% to
USD 147.3m from USD 105.5m, and the number of
branches increasing by 50 to 567. This operational
improvement translated into a significant growth in
the region’s financial performance in 2024, with net
profit increasing by 127% to USD 15.4m from
USD 6.8m. All operating countries in East Africa
contributed positively to the region’s operational
and financial results, in particular, Tanzania and
Kenya and increasingly Uganda.
West Africa
West Africa’s financial and operational results
improved in 2024, compared to 2023, with net profit
increasing to USD 15.4m from USD 7.5m. OLP
increased to USD 84.8m from USD 72.3m, and
PAR>30 significantly improved from 3.3% to 1.5%
driven by the excellent portfolio quality in Ghana
and a significant improvement of PAR>30 in Nigeria.
All countries in the region have shown improved
financial performance, despite the application of
hyperinflation accounting in Ghana and Sierra Leone
negatively affecting their financial profile. West
Africa’s financial and operational results mostly
driven by the significant positive contributions made
by Ghana.
Strategic Report
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asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
Group CEO statement (continued)
South East Asia
South East Asia’s net profit increased to USD 6.4m
in 2024 from USD 3.4m in 2023 with both The
Philippines and Myanmar demonstrating improved
performance. Myanmar saw an improved operating
environment notwithstanding the ongoing internal
conflict. As the loan demand continued to grow, the
region’s OLP increased in 2024 compared to 2023
by 13% from USD 74.0m to USD 83.9m, driving the
improvement in profitability. The number of
branches increased by 7% from 458 to 489, resulting
in a higher client reach of 475k, up by 7%. However,
PAR>30 increased from 2.8% to 4.8% due to natural
calamities affecting the collection efficiency in
the Philippines.
South Asia
South Asia’s operational results improved in 2024
compared to 2023, with OLP increasing 11% to USD
130.5m from USD 117.5m. This increase was mainly
driven by the operations in Pakistan and was
achieved despite the challenging operational
situation in India which negatively affected the
overall results of the region. PAR>30 increased to
2.1% at the end of 2024, with portfolio quality in
Pakistan and Sri Lanka having remained broadly
stable while India experienced a deterioration in
portfolio quality. The branch network in South Asia
has been expanded during the year, with the number
of branches increasing by 29 to 618 with the number
of clients also increasing by 36k to 878k. The
region’s financial performance declined in 2024, with
net profit decreasing by 23% to USD 2.6m from USD
3.3m mainly due to an USD 1.1m accrual relating to
unsettled tax claims.
As previously announced in January 2025, the Board
of ASA India has made an application to the Reserve
Bank of India seeking to surrender its NBFC-MFI
licence. The decision to surrender the licence was
taken due to a need to reduce costs given the
deteriorating financial profile in India, associated
liquidity concerns and ongoing lender defaults.
This aligns with the broader intention of
ASA International to divest ASA India. By way of
background, the microfinance market in India is one
that is characterised by high volumes and low
margins, which contrasts with the dynamics evident
in ASA International’s other operating countries.
As result, ASA India has historically demonstrated
difficulties in realising long-term profitability. This
financial situation was further exacerbated by the
COVID-19 pandemic where this impact was
proportionally much greater than seen in the other
operating markets. Given these specific market and
business dynamics and in line with the Group’s risk
management strategy, ASA India’s operations have,
in any event, been intentionally shrunk since 2023.
The pathway to future sustained profitability in
India has become increasingly unviable and a
divestment of ASA India, which involves a full
deconsolidation from the Group, will have a
positive impact on the Group’s results as the
expected ongoing operational losses will no longer
be consolidated. Work on the proposed divestment
of ASA India is already under way.
Local leadership
We also continued to invest in highly qualified and
skilled professionals who can boost growth and
support the transition to digital financial services.
We were delighted to welcome onboard new local
CEOs for Uganda, Rwanda and Nigeria in 2024.
Furthermore, a number of local CFOs and other
senior managers have been appointed across our
operating countries, further strengthening the local
finance teams. The fresh perspectives that these
new colleagues will bring, alongside their significant
professional, banking and leadership experience will
be key in delivering growth in these markets and
preparing ASA International for the future.
Digital strategy and transformation
The digital strategy is focused on the implementation
of a Core Banking System and a digital financial
services platform that meet the requirements for
running a modern micro banking institution.
Alongside the digitalisation of the client journey,
the intention is to also further enhance business
administration processes.
Following the roll-out of the Temenos Transact Core
Banking System and migration of more than
600.000 customers in Pakistan early 2024 the focus
of the programme has been on maturing the
implementation to enable Pakistan to grow the
client base further and prepare for additional
product offering, such as deposit taking activities. In
parallel the roll-out of Temenos Transact combined
with implementation of the digital financial services
app in Ghana and Tanzania is steadily progressing
and both countries are targeted to go-live in 2025.
Competitive environment
The competitive landscape remains broadly
unchanged with the strongest competition being
faced in India, the Philippines, Nigeria, Tanzania, and
Uganda. In most other markets, competition from
traditional microfinance institutions is less intense,
in particular, in Myanmar. Competition from pure
digital lenders has not had a direct impact thus far.
Sustainability
In 2024, ASA International advanced its
commitment to double materiality, focusing on
Diversity, Equity and Inclusion (‘DEI’) and climate
goals. Gender representation was improved in
committees and among staff and alongside this over
1,000 leaders were trained in DEI. Gender-bias
training was also provided to more than 3,750
employees. With regards to climate, we met key
targets by installing more than 200 solar systems,
planting around 30,000 trees, and educating more
than 220,000 stakeholders. A long-term climate risk
assessment confirmed ASA International’s strategic
and financial resilience. Lastly, over 150,000
community members were engaged with through
more than 850 programs in health, education,
environment, and disaster relief, with nearly
USD 450,000 in contributions.
Dividend
We were delighted to re-introduce dividend
payments in 2024. During the year, ASA International
declared an interim dividend of USD 0.03 per share
which equated to a payment of USD 3.0m paid to
shareholders on 24 December 2024.
A final dividend of USD 0.041 per share is
recommended by the Board and will result in a total
dividend for 2024 of USD 0.071 per share
(2023: Nil).
Looking ahead
I would like to pay tribute to my colleagues who have
been instrumental in delivering ASA International
successes in 2024. They will also be key to delivering
the growth we see for the coming years.
Looking forward to 2025 specifically, we expect to
see growing demand for loans and ever greater
productivity across the organisation as we drive
efficiency in the branch network and therefore
reduce our cost-income ratio. From a digital
transformation standpoint, we will build on the
successes of 2024 by continuing the roll-out of the
core banking system and digital platform to Tanzania
and Ghana. We also expect to further strengthen
the leadership teams at both the group and
operating country level during the course of 2025.
Rob Keijsers
Group CEO, ASA International Group plc
23 April 2025
Strategic Report
9
ASA International Group plc
Annual Reports and Accounts 2024
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asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
Our key differentiators
Socially responsible
services
Highly
scalable
Diversified
risk profile
Proven credit
methodology
Microfinance
experience
33yrs
Social Performance
Indicator
85%
Prospects
376m
Operating subsidiaries
13
Client retention rate
80%
PAR>30 days
2.2%
Deposit-taking licences
6
Return on average
assets
5.4%
Return on average
equity
33.0%
Dividend (per share)
USD 0.071
Through the ASA Model of Microfinance
Through its heritage with ASA, the Association of
Social Advancement, based in Bangladesh, ASA
International has a long heritage in the
microfinance industry. From inception, we
benefited from early access to ASA NGO
Bangladesh’s know-how, industry technical
expertise and experts. ASA International was
founded to adapt the ASA Model to fit the diverse
countries in Asia and Africa where we offer
microfinance services. The ASA operating and
lending model is focused around six distinctive
features, emphasising our social responsibility
commitment to both clients and staff:
• Loans with market-based interest rates.
• Group selection without joint liability.
• Collateral-free loans with a moratorium on loan
repayments in emergency situations.
• Loans for primarily income-generating activities.
• Majority repayment before qualifying for new
loans and repeat loan cycles with set limits.
Top up loans also can be offered.
• Training and development of operating staff
in-house and no bonus incentive.
See our website for more information on our history
Due to presence in thirteen emerging and
frontier markets
ASA International’s overall risk profile is diversified
across thirteen markets in Asia and Africa. The
impact of principal risks on the business is different
at any given time from country-to-country, which
provides a powerful risk mitigation effect.
The risk management features embedded in the
ASA Model, such as managing credit risk, have
a positive impact on ASA International’s financial
and risk profile. In 2024, as a result of the
inflationary environment and currency
depreciations, the liquidity, exchange rate and
inflation rate risks remained elevated.
The addressable market is estimated at 376m
prospects in existing countries of operation,
according to the World Bank. The Group is well
placed to capture this significant breadth of market
opportunity by continuing to increase its
penetration in current as well as in future markets
in Asia and Africa.
See our website for more information
on our addressable market
As a result of staying close to clients
Managing credit risk is an integral and essential
part of ASA International’s operating and business
model. Loan officers foster close client
relationships, quickly identifying repayment or
other issues, as well as disbursing new, larger loans
to qualified clients over time.
The client assessment and admission process may
take up to 14 days for a first cycle loan, ensuring
only clients committed and able to grow their
businesses are accepted and protecting clients
from becoming over-leveraged.
The credit methodology results in low credit losses,
which in combination with the low cost
of operations, leads to attractive financial returns.
Read more on how we engage with clients on page 55
and our business model on page 11
Decentralised business model
Our experienced management team makes sure the
ASA Model is executed in a disciplined way across
all of our markets. The operations are highly
standardised through the use of an operations
manual and are almost identical across all operating
markets. Client selection and loan sizes are decided
at the branch level.
Supporting the branch model, a digital channel will
also be introduced via mobile devices, market-by-
market over the coming years as part of our digital
transformation strategy. Over time, we also aim to
take deposits more widely from clients, which will
increase the closeness of the client relationship and
reduce the overall client risk profile. As part of the
deposit strategy, ASA International seeks to acquire
deposit-taking licences in all operating subsidiaries.
Six countries currently have obtained deposit-
taking licences.
Read more on pages 16 to 18 on our strategy
and our business model on page 11
See our website for more information
www.asa-international.com/investors/our-key-differentiators/
Strategic Report
10
ASA International Group plc
Annual Reports and Accounts 2024
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asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
Key features
• Target ~1,400 clients per branch (15km radius).
• Self-sufficient branches with on- and off-site supervision.
• Weekly/fortnightly loan collections and disbursements.
• Collateral-free, individual loans with market rates
for income generation.
• c. 90% primary loans
1
; remainder small business/
MSME loans.
• Majority repayment required before new loan
(20-50% increase).
• Deposit growth – accelerated further by new licences.
• Funding from local financial institutions, development
banks, and MFI funds.
1 Primary loans is the loan product with the smallest loan size for working capital purposes of the products we offer in a particular country.
Operational model
Branches are deeply
rooted in the community
Microcredit to female micro-entrepreneurs
Average loan disbursement per
client of USD 283 for 6-12 months
Small
businesses
Enhanced
business activity
Income-
generating
purpose
Increased
household
spending/
saving
Social
empowerment
/well-being
Increased
household income
The ASA Model is a decentralised,
standardised and socially responsible
microfinance approach that allows for
cost efficiency, quick decision-making,
replicability, and high-touch client
engagement, while addressing the
demand for savings and loans, and
over time, digital financial services.
Our blueprint
for sustainable
success
Operational model
Read more about socially responsible services on page 55
Strategic Report
11
ASA International Group plc
Annual Reports and Accounts 2024
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asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
Operational model (continued)
1 Excludes on-the-job training.
The Company’s strategy and core operations contribute to
the delivery of five Sustainable Development Goals (‘SDGs’)
Total loans disbursed (USD)
1,106.7m
Social Performance Indicator
(‘SPI’)
85%
Client satisfaction
84%
Female clients
97%
Employee satisfaction
75%
Hours training
1
77, 350
Number of employees
14,232
Impact on our stakeholders
Community project spend (USD)
439k
Branches opened
143
Environmental efforts spend
(USD)
376k
Taxes (USD)
35.0m
Contribution to economic
development of country through
clients’ increased income.
Membership at central banks
and securities exchange
13
Association with many regulators
and industry bodies to contribute
to a sustainable microfinance
environment.
Public float
54%
Dividend (per share)
USD 0.071
Return on Equity (‘ROE’)
33.0%
Clients Colleagues Communities and
the environment
Countries Regulators and
industry bodies
Shareholders,
investors and lenders
• Financial inclusion.
• Empowering women.
• Socioeconomic progress.
• Client Protection Principles.
• Job creation.
• Training and development.
• Positive and stable work
environment.
• Clients trading in the
community.
• Community programmes.
• Inflow of capital.
• Minimising environmental
impact.
• Company taxes paid
to government.
• Higher spending due to
increased income of clients.
• Creating sustainable lending
environment.
• Reliable business partner.
• Supporting policy making.
• Promoting international
standards for compliance.
• USD returns including
projected regular dividends.
• Advancing financial inclusion.
Read more on page 53
Strategic Report
12
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asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
Section 172 statement
The Board continues to uphold the highest
standards of conduct by respecting the
needs and views of its stakeholders and the
environment. The disclosures set out on this
page demonstrate how the Company has
considered the matters set out in Section
172(1)(a) to (f) of the Companies Act 2006.
Engaging with
our stakeholders
Our stakeholders What matters most How we engage
How the Board engages
and is kept informed
Clients • Loan repayment capacity.
• Loans with tangible economic benefits.
• Channels for feedback and complaints.
• Market-driven interest rates.
• Expanded digital access and relevant
product offerings.
• Transparent policies and procedures.
• Flexible moratorium options.
• Face-to-face interaction.
• Clients receive loans at branch.
• Branch staff meet clients at
group meetings.
• Branch staff visit clients’ businesses.
• Senior management conducts
client visits.
• Field staff maintain mobile phone
contact with clients.
• Regular surveys are conducted.
Read more about prioritising our clients on page 55
• Senior management reports to Audit
and Risk Committee (‘ARC’).
• Monthly business updates provided.
• Client survey and Committee reports
shared.
• Community project progress reported.
Colleagues • Safe work environment.
• Robust GMC procedures with Board
emphasis.
• Fair salary and benefits.
• Employee development through
training and promotion.
• Regular feedback channels.
• Commitment to gender diversity.
• Streamlined, digitised internal
processes for better productivity.
• Senior managers mentor junior staff.
• Senior management sits on operating
subsidiaries’ boards.
• Head office-level meetings with senior
management.
• Implement Diversity, Equity and
Inclusion (‘DEI’) goals to increase female
representation.
Read more about supporting our colleagues
on page 57
• Meetings among ARC Chair, CFOs, and
Internal Audit staff.
• Senior management reports in Board
meetings.
• Staff survey results are reported.
• Grievance Mitigation Committee (‘GMC’)
and whistleblowing reports presented at
all meetings.
• Progress on DEI targets reported.
See pages 91 and 97 for Board activities relating to its
fulfilment of duties under Section 172
Communities and
the environment
• Commitment to enhancing clients’ and
families’ socioeconomic advancement.
• Community engagement initiatives.
• Provide relief during hardship.
• Environmental impact mitigation and
awareness efforts.
• Evaluating and addressing climate risks.
• Branches embedded in the
communities.
• Field staff work closely with community
members.
• Group meetings and client referrals are
part of the communities.
• Investment and engagement in
community projects.
• Follow climate targets.
Read more about our community programmes on
page 61 and our climate-related efforts on page 64
• Community programme initiatives
reported.
• Senior management reports community
feedback in Board meetings.
• Budget spending and impact metrics for
community projects.
• Progress on climate targets reported.
Strategic Report
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ASA International Group plc
Annual Reports and Accounts 2024
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asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
Section 172 statement
(continued)
Our stakeholders What matters most How we engage
How the Board engages
and is kept informed
Lenders • Stay informed about business
performance.
• Diversify funding sources.
• Cultivate relationships with new and
existing stakeholders.
• Secure favourable terms through
negotiations.
• Meetings and field trips with local and
international financiers.
• Updates by the CEO following the
publication of important Company
news.
• Senior management reporting in Board
meetings on funding matters.
• Secures liquidity.
• Secures a stable and reliable funding
position.
• Monitoring of covenants.
• Oversees progress of extending waivers,
no-action letters in case of potential
covenant breaches.
Shareholders • Stay informed about business
performance, long-term goals, strategy,
and execution.
• Foster constructive dialogue.
• Exchange viewpoints on Group
strategy.
• Uphold compliance and transparency
for investor confidence.
See Engaging with shareholders on page 97
• Business updates.
• Audio webcasts and financial results
announcements.
• Investor and analyst meetings.
• A dedicated investor website.
• Investor conferences, roadshows and
field trip visits.
• Integrates shareholder and investor
feedback in the Group’s strategy.
• CEO delivers updates in Board meetings
and regular IR updates provided.
• Reviews analyst reports.
• Offers feedback on RNS announcements
and the Annual Report.
• Conducts Annual General Meetings.
Regulators and
industry bodies
• Fully comply with reporting
requirements and local regulations.
• Engage positively with local
government and regulatory initiatives.
• Participate in industry networks at the
local level.
• Pursue deposit-taking licences
as needed.
• Stay updated on reporting regulations.
• Country Heads engage in meetings with
regulatory bodies.
• Foster relationships with local town
councils, law enforcement agencies,
government bodies, and microfinance
networks.
• Senior management reports during
Board meetings.
• Ensures full compliance with reporting
requirements and local regulations.
• Maintains a sustainable lending
environment for clients.
• Discusses proposed new regulations.
Strengthening stakeholder engagement
in key markets
Chris Low, Chair, visited key markets,
including Ghana and Pakistan, to engage
directly with stakeholders and strengthen
our strategic direction. Meeting with
clients, employees, and leadership teams,
discussions covered business performance,
governance, risk management, people
development, technology, and operations.
These visits provided valuable insights into
local market dynamics, reinforcing our
commitment to transparent leadership and
responsible growth. By connecting with
teams on the ground and hearing from
clients firsthand, Chris emphasised the
importance of collaboration, innovation,
and long-term sustainability.
CASE STUDY
Read more about our strategy on page 16
Strategic Report
14
ASA International Group plc
Annual Reports and Accounts 2024
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asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
Section 172 statement (continued)
The Company’s commitment to accelerating
sustainable growth was central to decision-making
during the year, exemplified through three cases:
enhancing leadership and executive talent,
expanding into the microfinance banking sector,
and advancing digital transformation across key
markets. The case studies demonstrate the
Company’s approach to decision-making, with
stakeholder engagement being a fundamental
aspect of the strategic process.
Principal decisions
and discussions
01 02 03
Enhancing leadership
and executive talent
The Board requested an action plan to
strengthen leadership quality and urged
senior management to prioritise high-calibre
executive hires. As part of this strategy, the
Company has shifted from an operationally
led to a financially led leadership approach,
ensuring decision-making is aligned with
long-term financial sustainability and
business growth. Executive search firms have
been engaged to enhance diversity in
leadership and prioritise local CEOs from
respective countries. This initiative also
includes a robust recruitment process,
leadership development programme, and a
performance management system to attract
and retain top-tier talent.
Expanding into
microfinance banking
The Company has prioritised entry into the
microfinance banking sector, where
advantageous, by focusing on securing the
licences for deposit-taking activities as needed.
The Board ensured engagement with regulators
to understand the requirements and fast-track
the licensing process. A key strategy involves
fully utilizing existing licenses while planning
for the acquisition of new licenses to expand
operations and services. This decision reflects
the Company’s commitment to diversifying its
offerings, enhancing its competitive position,
and meeting market demands for integrated
financial services.
Advancing technology
across key markets
The Company is actively driving digital
transformation, focusing on strengthening
technological infrastructure in key markets.
This includes setting up a regional private cloud
hub in Ghana to support the rollout of our Core
Banking System (‘CBS’) and Digital Financial
Services (‘DFS’), completing a CBS migration
in Pakistan, and preparing Kenya and Tanzania
for DFS implementation. These efforts reflect
a broader push to modernise operations and
build a unified digital ecosystem. The Board is
committed to improving efficiency and
scalability to meet future challenges. While
mobile money is being explored, the priority
is to establish a robust digital framework that
supports long-term growth and innovation
across markets.
Stakeholder considerations and impact:
• Colleagues: The introduction of strong
leadership is expected to foster a positive
work culture, improve internal
communication, and create opportunities
for career growth.
• Shareholders: A well-structured
leadership team strengthens strategic
execution, enhances operational
efficiency, and improves business
performance, ultimately increasing
shareholder value.
Stakeholder considerations and impact:
• Regulators: Transparent engagement with
regulators ensures compliance with financial
regulations and fosters a cooperative
relationship that supports a smooth
licensing process.
• Lenders: Expansion into microfinance banking
provides a more stable framework for financial
transactions, increasing confidence among
lenders and access to funding.
• Shareholders: Entering the microfinance
banking sector unlocks new revenue
streams, enhances market positioning, and
supports long-term growth, benefiting
shareholders through increased profitability.
Stakeholder considerations and impact:
• Clients: Digital advancements will lead to
improved service delivery, greater
accessibility to financial services, and a
more seamless user experience.
• Shareholders: Investing in digital
transformation ensures long-term
competitiveness and growth, ultimately
enhancing shareholder returns.
• Digital partners: Strengthening digital
infrastructure fosters collaboration with
FinTech and technology providers,
expanding opportunities for innovation
and service enhancements.
Strategic Report
15
ASA International Group plc
Annual Reports and Accounts 2024
Discover more
asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
Our growth strategy
Our strategy
ASA International aims to achieve sustainable growth and increased
financial inclusion by growing its loan portfolio, digital advancement
and broadening its products and services.
Increase financial
inclusion
Drive growth
and efficiency
Broaden products
and services
Increase number
of branches and
borrowers
Increase
loan volumes
Introduce new loan
products
Grow
voluntary savings
Maintain branch model
and proven credit
methodology
Maintain group meetings
and active field presence
Improve branch and loan
officer efficiency through
digitised internal
processes
Introduce a digital
channel via mobile
devices to enrich the
high-touch service
Offer
online loans
Offer payments,
savings and other
financial services
Provide non-financial
value-added services to
grow clients’ businesses
Attract
new clients
Strategic Report
16
ASA International Group plc
Annual Reports and Accounts 2024
Discover more
asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
Strategic pillars & KPIs 2024 progress 2025 priorities
Increase financial inclusion
• Continued operational growth in 2024.
• Outstanding Loan Portfolio (‘OLP’) grew by 21%
to USD 446.6m.
• Number of clients grew slightly to 2.5m, representing a 8%
growth versus the prior year.
• Average Gross OLP per client increased by 13% resulting
in USD 182 average Gross OLP per client.
• Voluntary savings to OLP remains stable at 3.5%, as
there has not been a new market that has started to
take deposits.
• Further operational growth in existing markets.
• Increase OLP per client.
• Realise growth in number of clients.
Clients
2.5m
2023: 2.3m
% voluntary savings to OLP
3.5%
2023: 3.4%
OLP
USD 446.6m
2023: USD 369.2m
Average gross OLP / client
USD 182
2023: USD 162
Drive growth and efficiency
• Completed implementation of the Core Banking System
(‘CBS’) in Pakistan in Q1 2024 and continued the rollout
preparation for other markets.
• Continued development of the digital financial services
(‘DFS’) platform in readiness for a 2025 launch in Ghana
and Tanzania.
• Increased borrowers per loan officer from 287 to 292.
• Leverage the benefits and additional product offering
of the new CBS platform in Pakistan.
• Work towards the implementation of the CBS combined
with a digital proposition in Ghana.
• Continued work and focus on the rollout of CBS in Tanzania
and Kenya.
• Further improve operational efficiency by increasing
borrowers per loan officer.
Borrowers per loan officer
292
2023: 287
Broaden products and services
• Additional progress made in launching deposit services
in Pakistan.
• Start taking deposits from clients in Pakistan.
• Launch DFS app that enables digital loans, payments
and savings.
• Progress obtaining microfinance banking licences in Tanzania
and Kenya.
• Grow savings and offer new products such as insurance.
Our progress
Our strategy (continued)
Strategic Report
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ASA International Group plc
Annual Reports and Accounts 2024
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asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
Our strategy (continued)
Importance of
digital transformation
For ASA International, the digital transformation
that is currently under way is critical to unlocking
our growth potential. It will ultimately create a
scalable, efficient platform and a compelling
offering for our clients and colleagues. The
technological overhaul has two main components.
Resilience – Core Banking System
It is essential that we have a robust CBS in order
to scale the client base. It is also a becoming a
prerequisite from a regulatory compliance
perspective in terms of reporting and audit rigour
as well obtaining various microfinance licences.
The new Temenos-sourced system replaces the
existing AMBS platform which has already reached
end-of-life. The modular and open architecture of
the CBS allows for seamless integration with the
Digital Financial Services component. It will also
allow easier adaptation to regulatory changes such
as the requirement to convert to Islamic banking
in Pakistan.
Sustainable client and business impact
– Digital Financial Services
DFS will enable additional business scaling by
eliminating manual processes for staff. In addition,
it is the foundation for a compelling client offering
delivered via an app. It is also important that ASA
International stays ahead of the competition by
having a client-friendly front-end interface as well
as efficient operations. Lastly, it will also help to
further minimise fraud misappropriation.
Rollout approach
Following the implementation of the CBS in
Pakistan, ASA International is taking a structured
approach to further rollouts. Next in line will be
Ghana and Tanzania. These operating subsidiaries
were chosen primarily given their size and
importance, as well as the fact that one is a
microfinance bank (Ghana) and the other is a
microfinance institution (Tanzania). These different
set-ups can then be leveraged across other markets
including Kenya, Nigeria, Uganda, and Rwanda.
ASA International’s digitalisation strategy aims to increase client-centricity, ease of use and efficiency for both clients and staff.
This transformation will enable significant growth, open new client channels, improve our ability to offer a broader range of services
and simplify customer journeys. In addition, it will provide enhanced resilience with a leading core banking system infrastructure.
Digital transformation
Present Future
• In-house developed loan
system (‘AMBS’)
• Branch
• Loans
• Savings
Technology
Client channel
Services
• Packaged Core Banking System (‘CBS’)
• Digital Financial Services (‘DFS’) system
• Supplier Market Place (‘SMP’) system
• Branch
• Banking app (‘DFS’)
• SMP app
• Accounts
• Loans
• Savings
• Payments
• SMP
Manual and complex Internal processes Digital and simplified
Strategic Report
18
ASA International Group plc
Annual Reports and Accounts 2024
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asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
PROFESSIONALISM TEAMWORK DRIVE GROWTH
AND EFFICIENCY
INTEGRITY
Driving digital transformation:
ASA Pakistan’s core banking evolution
In the evolving landscape of
microfinance, digital innovation
plays a crucial role in driving
progress and expanding access
to financial services. For ASA
Pakistan, the implementation
of a new core banking system
marked a significant milestone,
strengthening operational
efficiency, compliance, and
customer service. The transition,
however, was a complex and
demanding process that required
meticulous planning, cross-
functional collaboration, and
unwavering commitment from
colleagues across the organisation.
For Imran Ahmed, Head of Distribution,
with 22 years of experience in microfinance,
the need for change was clear.
Prior to this transformation, processes were largely
manual—time-consuming, prone to compliance
risks, and cumbersome for both employees and
customers. With our microfinance banking licence
in place, adopting a more robust and efficient
system became a strategic step towards upholding
credibility and optimising service delivery.”
IMRAN AHMED
HEAD OF DISTRIBUTION
Feature story – Our colleagues
Clients migrated to new CBS
600,000+
Continued on next page
ValuesSDGs Strategy
19
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Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
Strategic Report
A collaborative effort in a
high-stakes transition
Transitioning to a new Core Banking System was
an intricate process involving extensive data
migration, system restructuring, and workforce
adaptation. With over a billion data points,
thorough data validation and cleansing were critical
to ensuring a seamless shift.
ASA Pakistan took a structured approach, gradually
preparing employees across all levels. A dedicated
Group Transformation Team worked closely with
local colleagues, guiding them through the process,
aligning expectations, and defining clear objectives.
“Comprehensive training programmes were
conducted, but given accessibility challenges,
we had to innovate, using visual materials and
theory-based training when live demonstrations
were not feasible,” Imran explains.
Despite rigorous preparation, unexpected
challenges arose. System accessibility was initially
limited, particularly in rural branches, impacting
early adoption. A lesson learnt was the need for
stronger contingency measures to manage
disruptions effectively.
Enhancing efficiency and
customer experience
Today, with the system fully integrated,
ASA Pakistan has seen significant operational
improvements. Manual processes have been
significantly reduced, compliance has strengthened,
and internal controls have been enhanced.
During the initial phase of the migration, loan
officers required over an hour to complete a
customer transaction as they adapted to the
new system. With experience and system
refinements, transactions are now processed in
under 30 minutes, improving efficiency beyond
previous levels.
This efficiency has translated into a better
experience for customers, with reduced waiting
times and more streamlined services. “The system’s
flexibility allows us to introduce new products and
services tailored to customer needs. We are
actively developing offerings such as deposit and
savings accounts, ensuring that we continue to
evolve alongside our clients’ financial
requirements,” Imran highlights.
Additionally, the improved system has empowered
loan officers to focus on customer engagement
rather than administrative tasks. ASA Pakistan
maintains one of the lowest Portfolio at Risk (‘PAR’)
ratios among microfinance institutions in Pakistan,
largely due to its strong client relationships. “With
automated processes in place, our teams can
dedicate more time to the field, strengthening
customer relationships and ensuring financial
inclusion reaches those who need it most,” he adds.
Learning and growing through
digital innovation
For Imran, this transformation has been both a
professional and personal learning experience.
“I have gained a deep understanding of IT systems
and the importance of aligning processes with
technology. This journey has reinforced the value
of teamwork, adaptability, and strategic planning in
any major digital transition. This transformation has
been fuelled by dedication and collaboration. From
Group IT Support and the local business teams to
all staff in the field, every contribution mattered.
I was inspired daily by the energy and can-do
attitude of many.”
ASA Pakistan’s core banking transformation is
a testament to the commitment, professionalism,
and resilience of its people. By embracing digital
innovation, the organisation is not only enhancing
operational efficiency but also reinforcing its
mission of providing accessible and sustainable
financial services to underserved communities.
Feature story – Our colleagues (continued)
With our microfinance
banking licence in place,
adopting a robust and efficient
system became a strategic
step towards upholding
credibility and optimising
service delivery.”
Strategic Report
20
ASA International Group plc
Annual Reports and Accounts 2024
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asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
2024
2023
446.6m
369. 2m
2024
2023
3.5%
3.4%
2024
2023
5.4%
1.8%
2024
2023
182
162
2024
2023
35%
31%
2024
2023
28.5m
8.8m
2024
2023
2.2%
2.0%
2024
2023
61.4%
72.1%
2024
2023
0.29¢
0.09¢
These Key Performance Indicators
(‘KPIs’) reflect the financial metrics
that ASA International deems as
important to the achievement of
its business objectives.
Financial
Key Performance Indicators
Outstanding Loan Portfolio (‘OLP’) (USD)
+21%
Voluntary savings to OLP
+0.1ppt
Return On Assets (‘ROA’)
+3.6ppt
Gross OLP/Client (USD)
+13%
Net Interest Margin (‘NIM’)
+4.0ppt
Net profit (USD)
+226%
PAR>30 days
+0.2ppt
Cost-to-income ratio
-10.7ppt
Earnings Per Share (‘EPS’) (USD)
+222%
The figure depicts net Outstanding Loan Portfolio including
off-book net Business Correspondence (‘BC’) loan portfolio
from IDFC, Jana Small Finance Bank and Fincare and Direct
Assignment (DA) loans with State Bank of India (‘SBI’).
In FY 2024 the loan book grew following increased demand
from clients, OLP increased year-on-year by 21% to
USD 446.6m. This OLP growth was predominantly driven by
improved performance in Pakistan, Ghana, Tanzania, and Kenya.
Voluntary savings to OLP is calculated by dividing total
voluntary savings by total OLP including BC and DA loans.
This ratio slightly increased to 3.5% in FY 2024 from 3.4%
in FY 2023 year, as voluntary savings has grown in a similar
manner as OLP due to an increased demand from clients.
Return on Assets is calculated by dividing the reported net
profit after tax by the average of total assets.
Return on Assets improved to 5.4% during FY 2024 from 1.8%
in FY 2023 mainly as a result of improved profitability across
our operating markets.
Gross Outstanding Loan Portfolio including BC and DA loans
divided by total number of clients.
Gross Outstanding Loan Portfolio per client grown significantly
to USD 182 in 2024 from USD 162 in 2023 as the loan book
also increased during the year.
Net Interest Margin measures the difference between the
interest income generated and the amount of interest expenses,
relative to the amount of average outstanding net loan portfolio.
NIM increased to 35% in FY 2024 from 31% in 2023 as some
subsidiaries increased interest rates and interest waiver
periods were reduced during FY 2024.
Consolidated net profit for the year as reported in the
financial statements.
Consolidated net profit for the year increased to
USD 28.5 million in FY 2024 from USD 8.8 million as a
result of growth in our loan portfolio and improvement
in our operational efficiency.
PAR>30 is the percentage of gross OLP that have one or more
instalment repayments of principal past due for more than
30 days, but less than 365 days, divided by total outstanding
gross loan portfolio (including both on-book and off-book loans).
High portfolio quality was maintained alongside OLP growth.
PAR>30 remained stable at 2.2% as at 31 December 2024 from
2.0% as at 31 December 2023.
Cost-to-income ratio is calculated by dividing total operating
expenses by total net operating income.
As our operational efficiency improved, the cost-to-income
ratio is also improved from 72.1% in 2023 to 61.4% in 2024
as a result of the increased net operating income.
Earnings per share is calculated by dividing the net profit after
tax by the weighted average number of ordinary shares
outstanding during the year. For 2023, number of shares is
equivalent to the number of ASA International Group plc
shares, which was 100 million.
Earnings Per Share is improved from USD 0.09¢ in 2023 to
USD 0.29¢ in 2024 as a result of increased profitability of
the Group.
Strategic Report
21
ASA International Group plc
Annual Reports and Accounts 2024
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asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
Key Performance Indicators
(continued)
The non-financial KPIs reflect the
operational efficiency and the
social impacts of the Group.
Non-financial
Number of clients
+8%
2024
2023
2.5m
2.3m
The number of clients in all operating markets.
The number of clients has increased during FY 2024 to
2.5 million from 2.3 million in FY 2023 as a result of increased
demand in our operating markets.
Borrowers per loan officer
+2%
2024
2023
292
287
The borrowers per loan officer is calculated by dividing total
number of clients by total number of loan officers.
The borrowers per loan officer increased to 292 during
FY 2024 from 287 in FY 2023 as an effort to improve loan
officer efficiency across the Group.
Social Performance Indicators (‘SPI’)
-5.0ppt
2024
2023
85%
90%
The Social Performance Indicator (‘SPI’) is a social audit tool
by CERISE based on the Universal Standards for Social
Performance Management, that assesses institutions across
seven dimensions, including social goals, client and employee
treatment, product design, governance, financial-social
balance, and environmental performance.
The social performance score declined mainly due to lower
results in environmental performance, driven by the absence
of green products despite strong training efforts. As a
self-assessment, some variation is expected, with a few
countries taking a more conservative approach. The drop is
under further review.
Find more non-financial performance indicators
in our ESG report on page 51
Strategic Report
22
ASA International Group plc
Annual Reports and Accounts 2024
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asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ASA International delivered a significantly improved financial
performance in 2024 compared to that of 2023 both in terms
of top line growth and bottom line profit. Financial resilience
has improved materially with growth in equity and a
resumption in dividend payments.”
Robust profitability and enhanced equity levels
were achieved when compared to 2023 whilst the
Company also focused on growing its asset base
sustainably. Ghana and Pakistan were major
contributors to this profitability and asset base
growth. This strong financial performance was
achieved despite the downside impact of
hyperinflation accounting in Ghana and Sierra
Leone and not being able to book deferred tax
assets for India. It is worth noting that Ghana,
having had a significant negative accounting impact
in 2023 and 2024 as a result of hyperinflation
accounting, is currently no longer expected to be a
hyperinflationary country in 2025 as per the latest
publication from the IMF.
During 2024, the local currencies remained stable in
most of the countries except for some of our larger
countries including Ghana, Nigeria and Philippines.
This resulted in a comparatively lower FX loss in the
income statement for monetary items and a
reduced impact on the foreign currency translation
reserve in equity compared to 2023. Accordingly,
we achieved a positive total comprehensive income
1
in 2024 compared to a substantial negative total
comprehensive income last year.
We witnessed a strong growth in total equity at the
end of 2024 even after the payment of the interim
dividend. This is mainly driven by the profit growth
and relatively smaller translation impact from
currency devaluation.
Financial review
The Group intends to minimize the impact of
FX fluctuations by planning to introduce more
frequent dividend declarations by its operating
entities and explore potential equity hedging
strategies. Hedging of operating entity equity has
historically been hugely expensive and not deemed
to offer the required cost-benefit dynamic.
Furthermore, a strong focus on enhancing
operational productivity will support improved
financial performance and resilience against foreign
currency volatilities.
From an efficiency standpoint, we also improved
the cost to income ratio in 2024 mainly through
higher income generation with minimal growth in
operating costs. We are delighted by the
momentum being seen by the Company in 2024
and are confident in the outlook for continued
growth in 2025.
TANWIR RAHMAN
CHIEF FINANCIAL OFFICER
1 Total comprehensive income is the sum of the Company’s net
profit and other comprehensive income (OCI), which includes
unrealized gains and losses from items like foreign currency
translations and certain investment securities.
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Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
Summary income statement
(USDm unless otherwise stated) FY 2024 FY 2023 YoY change
Interest and similar income 213.9 176.6 21%
Interest and similar expense (43.5) (37. 8) 15%
Net interest income 170.4 138.9 23%
Other operating income 17.3 9.3 85%
Credit loss expense (6.8) (5.0) 36%
Net operating income 180.9 143.2 26%
Personnel expenses (64.8) (62.2) 4%
Other operating expenses
1
(46.3) (41.1) 13%
Total operating expenses (111.1) (103.2) 8%
Exchange rate result (0.9) (2.0) (56%)
Gain/loss on the net monetary position (5.4) (5.8) (7%)
Profit before tax 63.5 32.2 97%
Net profit 28.5 8.8 226%
Cost-income ratio 61.4% 72.1%
Net interest margin 35.2% 30.8%
1 Other operating expenses include depreciation and amortisation charges.
Financial review
Net interest income
Net interest income increased by 23% to
USD 170.4m in FY 2024 from USD 138.9m in
FY 2023. This is primarily driven by the YoY growth
of 21% in interest and similar income, which
increased to USD 213.9m from USD 176.6m
attributable to increase in the loan portfolio,
especially in Pakistan, Ghana, Tanzania and Kenya.
Interest rate increases in certain markets also
contributed to this growth. Interest and similar
expense increased to USD 43.5m in FY 2024 from
USD 37.8m in FY 2023, as a result of increased
external debt and relatively higher cost of funding.
Overall, net interest margin improved from 30.8%
in 2023 to 35.2% in 2024.
Net operating income
Net operating income grew by 26% to USD 180.9m
in FY 2024 from USD 143.2m despite the adverse
impact of 36% higher credit loss expenses
(USD 6.8m compared with USD 5.0m YoY), The
credit loss expenses tracked the growth in the loan
portfolio. This adverse impact was mitigated by a
significant increase of 85% in other operating
income to USD 17.3m from USD 9.3m (YoY),
primarily due to increase in document, application,
and verification fee income, as well as the
recognition of a USD 3.0m one-off gain related to
a third-party loan assignment in Myanmar.
Total operating expenses
Total operating expenses increased moderately by
8% from USD 103.2m in FY 2023 to USD 111.1m in
FY 2024. This was driven by the 4% increase in
personnel expenses from USD 62.2m in FY 2023 to
USD 64.8m, mainly as a result of a company-wide
mid-year increment in compensation packages and
an increase in staff numbers. Other operating
expenses also contributed to overall increase, with
a 13% growth from USD 41.1m in FY 2023 to
USD 46.3 million in FY 2024, primarily as a result
of increased amortisation charges and administrative
expenses. Amortisation has increased due to the
capitalisation of digital transformation items.
Overall, as a result of enhanced operational
efficiency, the cost-income ratio improved from
72.1% in 2023 to 61.4% in 2024.
Loss on the net monetary position
Loss on monetary position, reflecting the impact
of the application of hyperinflation accounting for
Ghana and Sierra Leone, reduced to USD 5.4m in
2024 compared to USD 5.8m 2023 given the
improving inflation and macroeconomic situation
seen in Ghana towards the end of 2024.
Profitability
Profit before tax increased by 94% to USD 63.5m
in 2024 from USD 32.2m in 2023, given the
improved income growth and cost dynamics
outlined above. Accordingly, net profit also
increased from USD 8.8m in 2023 to USD 28.5m in
2024.
Effective tax rate (ETR)
There was a favourable tax position in certain
jurisdictions in 2024 compared to 2023. This, to
some extent, contributed to the reduction in the
effective tax rate (excluding withholding taxes) to
45% in 2024 from 63% in 2023. This reduction is
mainly due to a favourable movement in the profit
mix, with higher profit being generated in countries
having a lower ETR such as, Ghana, Kenya and
Philippines, thereby reducing the total average tax
rate for the Group as a whole. There was also a
one-off tax claim booked in 2023 for Tanzania.
In addition, deferred tax assets for India and the
Holdings entities (ASA International Holding and
ASA International NV) cannot be booked and their
corresponding allocation to profit before tax
was lower in 2024 compared to 2023.
Group financial performance
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01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
Summary Balance Sheet
(USDm unless otherwise stated) FY 2024 FY 2023 YoY Change
Cash and cash equivalents 108.4 118.5 (9%)
Loans to customers 410.0 330.2 24%
Other assets 50.1 41.3 21%
Total assets 568.5 490.0 16%
Client deposits 90.2 79.1 14%
Interest-bearing debt 312.7 268.5 16%
Other liabilities
1
69.2 65.9 5%
Total liabilities 472.0 413.4 14%
Share capital and reserves 98.5 7 7.9 26%
Non-controlling interest (2.0) (1.3) 50%
Total equity 96.5 76.6 26%
Off-book Business Correspondence (‘BC’) and Direct
Assignment Gross loan portfolio 38.0 39.8 (5%)
Gross OLP 458.6 377. 2 22%
Less ECL reserves on loans and advances plus FV
adjustments on loans under FVTPL (12.0) (8.0) 50%
OLP 446.6 369.2 21%
PAR>30 days
2
2.2% 2.0%
1 Other liabilities include the following liabilities: retirement benefit, current tax, deferred tax, lease and derivative liabilities, any other
liabilities, provisions and interest payables.
2 PAR refers to ‘Portfolio at Risk’. PAR>30 is the percentage of outstanding customer loans with at least one instalment payment overdue 30
days, excluding loans more than 365 days overdue, to Gross OLP including off-book loans.
Financial review (continued)
Loans to customers
Loans to customers, a significant asset item on the
balance sheet, increased by 24% from USD 330.2m
at the end of 2023 to USD 410.0m at the end of
2024 due to higher demand from clients, especially
in the countries of the East African region, as well
as in Ghana and Pakistan. Accordingly, the Group’s
total Outstanding Loan Portfolio (Including
off-book portfolio) also increased by 21% to
USD 446.6m as at 31 December 2024 from
USD 369.2m as at 31 December 2023.
Total assets
Total assets increased by 16% to USD 568.5m
as at 31 December 2024 (31 December 2023:
USD 490.0m) primarily due to expansion of the
loan portfolio. Cash and cash equivalents declined
slightly by 9% from USD 118.5m as at 31 December
2023 to USD 108.4m as at 31 December 2024
reflecting support for increased loan
disbursements. Additionally, other assets increased
by 21% to USD 50.1m as at 31 December 2024
(31 December 2023: USD 41.3m), mainly as a result
of increase in intangible assets as a part of the
Group’s digital transformation initiatives and an
increase in advance income tax payment.
Client deposits
Client deposits levels (excluding interest payables)
improved by 14% to USD 90.2m as at 31 December
2024 from USD 79.1m as at 31 December 2023,
mainly driven by an increase in security deposits
(USD 74.5m as at 31 December 2024 and
USD 66.7m as at 31 December 2023) in line with
the growing customer loan portfolio. Additionally,
voluntary savings increased to USD 15.7m as at
31 December 2024 compared to 2023
(USD 12.4m), reflecting a growing customer
appetite for savings.
Interest bearing debt
Third-party interest-bearing debt (excluding
interest payables) increased by 16% as at
31 December 2024 to USD 312.7m from
USD 268.5m in 2023, mainly at the operating
subsidiary level, with significant new transactions
in Pakistan and Kenya.
Strategic Report
25
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Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
Equity movements
(USDm unless otherwise stated) FY 2024 FY 2023
Balance at the beginning of period 76.6 89.7
Impact of reclassification at FVTPL – 2.4
Net profit for the period 28.5 8.8
Change in FX translation reserve (4.3) (24.1)
Movement in hedge accounting reserve (2.2) (1.7)
Dividend (3.0) –
Others 0.8 1.6
Balance at the end of period 96.5 76.6
* See more details regarding the Foreign currency translation movements in the “Impact of foreign exchange rates” section.
Foreign exchange rates by country
Countries 31 Dec 2024 31 Dec 2023 YoY Change
Pakistan (PKR) 278.7 279.7 0%
India (INR) 85.6 83.2 (3%)
Sri Lanka (LKR) 293.1 323.9 10%
The Philippines (PHP) 58.1 55.4 (5%)
Myanmar (MMK) 2,098.9 2,101.2 0%
Ghana (GHS) 14.7 12.0 (23%)
Nigeria (NGN) 1,546.4 896.6 (72%)
Sierra Leone (SLE) 22.8 22.9 1%
Tanzania (TZS) 2,429.7 2,512.4 3%
Kenya (KES) 129.4 157. 0 18%
Uganda (UGX) 3,680.0 3,780.2 3%
Rwanda (RWF) 1,388.0 1,259. 5 (10%)
Zambia (ZMW) 27.9 25.8 (8%)
During 2024, certain local currencies, notably the
NGN (-72%), GHS (-23%), and PHP (-5%) particularly
depreciated against the USD. This had an additional
negative impact on the USD earnings of these
subsidiaries and also contributed to an increase in
the foreign currency translation reserve; however,
to a lesser extent compared to the previous year.
The total contribution (negative) to the foreign
currency translation reserve during 2024 amounted
to USD 4.3m (FY 2023: USD 24.1m). Out of this,
a USD 5.9m movement (negative) related to the
depreciation of the NGN, which is significantly
lower impact compared to the USD 15.1m negative
movement in 2023. This is because the local
currency depreciation was still high, but it was less
severe in 2024 compared to 2023. Ghana also
experienced notable currency depreciation during
2024 (-23%), the GHS fluctuation contributed
negatively to translation reserve (USD 5.4m) but
with a USD 4.3m upside from hyperinflation
accounting adjustment, it boiled down to a negative
USD 1.1m impact.
Financial review (continued)
Total equity
The equity position strengthened by 26% to
USD 96.5m as at 31 December 2024 from
USD 76.6m as at 31 December 2023, supported by
higher profitability (USD 28.5m in 2024 and
USD 8.8m in 2023) and a lower negative impact in
foreign currency translation reserve (USD 4.3m in
2024 and USD 24.1m in 2023) compared to last
year. In 2024, the Group also reinstated its dividend
policy, by declaring USD 3.0m interim dividend.
The growth across our countries of activity
outperformed the foreign currency devaluation
in 2024.
Impact of foreign exchange rates
As a company with a reporting currency in
US Dollars with operations in thirteen different
currencies, there may be currency movements
that can have a major impact on the consolidated
USD financial performance and reporting.
The effect of this can be generally categorized in
the equity section in two ways: (i) existing and
future local currency earnings translate into fewer
US Dollar earnings, and (ii) local currency capital of
any of the operating subsidiaries will translate into
a lower US Dollar capital.
Strategic Report
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Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
Total comprehensive income
(USDm unless otherwise stated) FY 2024 FY 2023
Profit for the period 28.5 8.8
Change in FX translation reserve (4.3) (24.1)
Movement in hedge accounting reserve (2.2) (1.7)
Tax on OCI and other items 1.2 0.6
Actuarial gain on defined benefit liabilities and gain on MFX investment
revaluation (1.2) 0.5
Other comprehensive income/(loss) (6.5) (24.8)
Total comprehensive income/(loss) for the period, net of tax 22.1 (16.0)
Funding
Total funding increased to USD 499.3m as at 31 December 2024 from USD 424.2m at the end of 2023.
(USDm) 31 Dec 2024 31 Dec 2023
Local Deposits 90.1 79.1
Loans from Financial Institutions 259.8 214.7
Microfinance Loan Funds 11.0 28.2
Loans from Dev. Banks and Foundations 41.9 25.6
Equity 96.5 76.6
Total Funding 499.3 424.2
Financial review (continued)
ASA International is prioritising the management of
its other comprehensive income movement which
is significantly impacted by the foreign currency
exchange differences on translation of foreign
operations. Comprehensive income improved to
USD 22.1m in 2024 from a loss of USD 16.0m in
2023. Increased profit for 2024 and actual currency
devaluation lower than seen in 2023 specifically in
Nigeria and Pakistan contributed to this variance
between 2024 and 2023. Dividend expatriation
was also higher in 2024 than in 2023. An area that
the management is strongly addressing. Focus
remains on working with local regulators on settling
dividend payables to the Group.
The Group intends to minimize the impact of
FX fluctuations by planning to introduce more
frequent dividend declarations by its operating
entities and explore potential equity hedging
strategies. Hedging of operating entity equity has
historically been hugely expensive and not deemed
to offer the required cost-benefit dynamic.
Furthermore, a strong focus on enhancing
operational productivity will support improved
financial performance and resilience against foreign
currency volatilities.
A favourable maturity profile has been maintained
with the average tenor of all funding from third
parties being substantially longer than the average
tenor at issuance of customer loans which ranges
from six to twelve months for the majority of the
loans. Local deposits have increased YoY in USD
terms. This increase was primarily due to significant
increase in security deposits mainly in Ghana.
Voluntary deposits have also increased during
2024, notably in Myanmar. The Group remains
focussed on maintaining a healthy funding mix with
a majority local sourced and local currency funding.
The cost of funding remained broadly stable at
11.4% on average across 2024 compared to 10.8%
in 2023, which reflects a mix of fixed- and
variable-rate loans as well as local deposits. Some
of the outstanding borrowings have a fixed interest
rate but a declining principal, which leads to an
increasing cost of debt over time. On the other
hand, the decrease in SOFR has lowered funding
costs for certain variable-rate loans. These
offsetting effects contributed to the overall stability
in our effective funding costs.
Lenders demonstrated their confidence in the
Group and continued to provide funding in 2024
as the Group was able to raise USD 193.8m
(FY 2023: USD 179m) in total debt during 2024,
and there is a substantial funding pipeline for 2025
amounting to USD 120.7m, with almost 99% having
agreed terms and can be accessed in the short
to medium term. There are existing credit
relationships with more than 50 lenders across
the world, which has provided reliable access to
competitively priced funding for the growth of
the loan portfolio.
Strategic Report
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asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
The Group has USD 79.1m (31 December 2023:
USD 76.4m) of cash at bank and in hand as at
31 December 2024 of which USD 50.2m
(31 December 2023: USD 48.2m) is unrestricted
and can be utilized for operational and other
working capital needs.
Net debt at the holding companies level slightly
decreased to USD 62.9m as at 31 December 2024
from USD 63.8m as at 31 December 2023.
The strategy of reducing the proportion of debt
funding sourced at the holding companies over
time is maintained.
As of 31 December 2024, the balance for credit
lines with breached covenants amounts to
USD 28.2m and the Group has received waivers
for USD 17.6m. The Group is still under discussion
to receive waivers for the remaining USD 10.6m.
The Group has also received temporary waivers,
as well as no-action and/or comfort letters from
some of its major lenders for expected covenant
breaches. However, these waivers are not for the
full going concern assessment period up to May
2026. The impact of these potential covenant
breaches, particularly in India, was further assessed
in the evaluation of the Group’s going concern as
disclosed in note 2.1.1 of the Annual Report.
However, the current economic and market
conditions make it difficult to assess the likelihood
of further debt covenant breaches and whether the
waivers necessary to avoid the immediate
repayment of debt or further extension of loan
terms will be forthcoming. As a result, senior
management and the Directors, as in previous
years, have concluded that this represents a
material uncertainty that may cast significant doubt
over the Group’s ability to continue as a going
concern. Nevertheless, given the historical and
continuing support received from lenders
evidenced by the last four years where the Group
has been continuously able to raise new funds and
receive waivers for such covenant breaches, and
based on continued improved operating
performance in most markets, the Group has a
reasonable expectation that it will have adequate
resources to continue in operational existence
throughout the going concern assessment period.
Expected credit losses
The Group increased its reserves in the balance
sheet for expected credit losses (‘ECL’) from
USD 8.3m as at end of 2023 to USD 12.3m as at
end of December 2024, for its OLP, including the
off-book BC portfolio in India and interest
receivables. The increase was primarily due to the
growth of OLP and a management overlay for
Pakistan, Philippines, Nigeria, Myanmar and India
(Off-book) to provide for the adverse impacts from
economic volatility, political instability, natural
disaster and inflation.
Furthermore, the USD 12.3m of ECL reserves as at
31 December 2024 mainly relate to overdue loans
in India (34%), the Philippines (17%) and Myanmar
(14%), with the remainder spread across the
other countries.
Financial review (continued)
Hyperinflation accounting
The IFRS standard IAS 29 “Financial Reporting in
Hyperinflationary Economies” (‘IAS 29’) requires
the Group to adjust the FY 2024 financial
information of operating entities, which expect to
be in hyperinflationary economies with the main
indicator being three-year cumulative inflation
exceeding 100% in the period 2022-2024. All items
are presented to reflect the current purchasing
power at the reporting date. By the end of 2024,
the three-year cumulative inflation in Ghana and
Sierra Leone has exceed 100%.
Based on this, hyperinflation accounting is applied
in the financial statement of the Group. The
application of IAS 29 results in non-cash
adjustments in the presentation of the financial
information of the Group. In 2024, net profit
decreased by USD 3.9m, however, total
comprehensive income and total equity increased
by USD 0.3m after the IAS 29 adjustments.
Based on third-party sources, the current
assessment for 2025 is that only Sierra Leone will
be subject to hyperinflationary accounting. Ghana,
which contributed the vast majority of the
hyperinflation accounting impact on the Group’s
accounts in 2023 and 2024, is currently forecasted
not to be considered hyperinflationary in 2025.
Should this be the case, it would mean that the
overall impact of hyperinflation accounting on the
Group’s accounts in 2025 is expected to be
materially reduced.
Regulatory capital
Currently, twelve out of thirteen operating
subsidiaries are subject to minimum regulatory
capital requirements. As of 31 December 2024,
there was full compliance with all relevant
minimum regulatory capital requirements.
Strategic Report
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Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
Regional snapshot
FY 2024 (in USDm) South Asia South East Asia West Africa East Africa
Net interest income 35.2 33.2 47.7 59.5
Credit loss expense (2.3) (2.5) (0.9) (1.3)
Net operating income 36.2 33.5 46.8 56.6
Total operating expenses* (25.0) (25.2) (22.6) (32.1)
Profit before tax 11.2 8.3 24.2 24.5
Net profit 2.6 6.4 15.4 15.4
FY 2023 (in USDm) South Asia South East Asia West Africa East Africa
Net interest income 29.4 27.4 44.2 43.4
Credit loss expense 0.4 (0.9) (3.7) (0.8)
Net operating income 32.0 28.3 40.6 39.7
Total operating expenses* (21.9) (23.7) (26.0) (27.9)
Profit before tax 10.0 4.6 14.6 11.9
Net profit 3.3 3.4 7.5 6.8
* Including gain/loss on net monetary position and exchange rate differences.
The Group’s consolidated results includes intercompany transaction elimination, adjustment and result
of non-operating entities. See more details about Regional financial performance in Note 3 on page 160.
Financial review (continued)
Regional and Country-wise OLP and Portfolio quality
OLP (in USDm)
PAR>30 days
31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
Pakistan 89.0 69.5 0.5% 0.3%
India (total) 36.5 43.6 5.4% 3.1%
Sri Lanka 5.0 4.4 4.9% 5.0%
South Asia 130.5 117.5 2.1% 1.5%
Philippines 58.4 54.2 6.8% 3.8%
Myanmar 25.6 19.8 0.3% 0.2%
South East Asia 83.9 74.0 4.8% 2.8%
Ghana 67. 5 51.9 0.2% 0.1%
Nigeria 11.0 15.8 4.9% 12.1%
Sierra Leone 6.3 4.6 9.4% 4.6%
West Africa 84.8 72.3 1.5% 3.3%
Tanzania 84.4 64.7 1.3% 0.9%
Kenya 36.3 20.9 0.3% 0.3%
Uganda 18.6 13.0 0.2% 0.8%
Rwanda 4.9 4.0 5.1% 6.8%
Zambia 3.1 2.9 3.4% 2.6%
East Africa 147. 3 105.5 1.1% 1.1%
Group
1
446.6 369.2 2.2% 2.0%
1 OLP refers to ‘Outstanding Loan Portfolio‘ and including off-book loans. PAR refers to ‘Portfolio at Risk’. PAR>30 is the percentage
of outstanding customer loans with at least one instalment payment overdue 30 days, excluding loans more than 365 days overdue,
to Gross OLP including off-book loans.
Regional performance
Strategic Report
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Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
South Asia
Net interest income
Net interest income increased by 20% reaching
USD 35.2m in 2024 from USD 29.4m in 2023
despite the downside impact of India’s results.
South Asia’s net interest income is primarily driven
by the strong operations of Pakistan where both
the loan portfolio and effective interest yield
showed an improvement. Meanwhile, interest and
similar expenses remained in line with the previous
year (2024: USD 12.6m, 2023: USD 12.5m),
contributing to an overall improvement in the net
interest margin.
Net operating income
Net operating income also improved by 13% to
USD 36.2m in FY 2024 from USD 32.0m in
FY 2023 as a result of operational expansion,
minimizing the negative impact of increased credit
loss expenses which decreased to USD 2.3m in
FY 2024, from a positive contribution of USD 0.4m
in FY 2023.
Total operating expenses
Total operating expenses grown by 14% to
USD 25.0m in 2024 from USD 21.9m, which driven
primarily by the personnel expenses increase from
USD 15.4m in 2023 to USD 16.7m due to an
expansion in the workforce to support operations,
along with salary increases.
Profitability
Profit before tax grew by 12% to USD 11.2m
in FY 2024 from USD 10.0m in FY 2023, mainly
as a result of improved income trends with the
cost-to-income ratio remaining broadly flat
(69.1% in FY 2024, 68.1% in FY 2023). However,
net profit declined by 23% to USD 2.6m in
FY 2024, from USD 3.3m in FY 2023 due to
an accrual for unsettled tax claims.
Financial review (continued)
Growth of net operating income
13%
2024: USD 36.2m
2023: USD 32.0m
Growth of profit (after tax)
-23%
2024: USD 2.6m
2023: USD 3.3m
Strategic Report
30
ASA International Group plc
Annual Reports and Accounts 2024
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asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ASA Pakistan grew its operations over the past
12 months with increased demand from clients:
• Number of clients increased from 616k to 662k
(up 8% YoY).
• Branch network increased to 380 branches from
345, supporting the increase in client reach.
• OLP increased as result from PKR 19.4bn
(USD 69.5m) to PKR 24.8bn (USD 89.0m)
(up 28% YoY in PKR).
• Gross OLP/Client increased from PKR 31.6k
(USD 113) to PKR 37.9k (USD 136) (up 20% YoY
in PKR).
• PAR>30 slightly increased from 0.3% to 0.5%
as certain branches experienced operational
challenges.
ASA India intentionally shrank its operations over
the past 12 months, as it focused on recovery of
overdue loans and settlement outstanding
third-party debt obligations while maintaining the
off-book portfolio:
• Number of clients decreased from 183k to 172k
(down 6% YoY) due to limited focus on new loan
disbursements.
• Number of branches reduced from 180 to 175
(down 3% YoY).
• On-book portfolio decreased from INR 0.43bn
(USD 5.2m) to INR 0.06bn (USD 0.7m) (down
85% YoY in INR).
• Off-book portfolio decreased from INR 3.2bn
(USD 38.3m) to INR 3.1bn (USD 35.8m) (down
4% YoY in INR).
• Gross OLP/Client decreased from INR 20.8k
(USD 251) to INR 20.1k (USD 235) (down 3%
YoY in INR).
• PAR>30 deteriorated from 3.1% to 5.4%.
* See note 13.2 to the consolidated financial statements 2024 for
details on the off-book portfolio.
Lak Jaya’s operations remained stagnant over the
past 12 months due to heightened competition:
• Number of clients increased from 43k to 44k
(up 2% YoY).
• Number of branches reduced by 1 to 63.
• OLP increased from LKR 1.43bn (USD 4.4m)
to LKR 1.45bn (USD 5.0m) (up 2% YoY in LKR).
• Gross OLP/Client increased from LKR 31.5k
(USD 97) to LKR 36.0k (USD 123) (up 14% YoY
in LKR).
• PAR>30 slightly improved from 5.0% to 4.9%
as collection efficiency is improving.
Pakistan India Sri Lanka
Financial review (continued)
Regional head offices
Strategic Report
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ASA International Group plc
Annual Reports and Accounts 2024
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asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
South East
Asia
Net interest income
Net interest income increased by 21% reaching
USD 33.2m in FY 2024 (2023: USD 27.4m) as both
Philippines and Myanmar contributed positively
by expanding their operations and increasing their
interest income. Net interest margin improved,
as the interest expense remained stable
(2024: USD 7.0m, USD 6.4m). Meanwhile, interest
income grew from USD 33.8m in FY 2023 to
USD 40.2m in FY 2024.
Net operating income
Net operating income improved by 19% to
USD 33.5m in 2024 from USD 28.3m in FY 2023 as
other operating income growth (2024: USD 6.4m,
2023: USD 5.0m) has mitigated the impact of
increased credit loss expenses (2024: USD 2.5m,
2023: USD 0.9m) as a result of OLP growth in both
countries and lower portfolio quality in Philippines.
Total operating expenses
Total operating expenses slightly increased by
7% to USD 25.2m in FY 2024 from USD 23.7m in
FY 2023, primarily driven by elevated personnel
expenses in the Philippines in efforts to improve
employee retention. Overall, the cost-to-income
ratio significantly improved to 74.2% in FY 2024
from 83.6% in FY 2023.
Financial review (continued)
Growth of net operating income
19%
2024: USD 33.5m
2023: USD 28.3m
Growth of profit (after tax)
88%
2024: USD 6.4m
2023: USD 3.4m
Profitability
Profit before tax significantly improved by 80%
from USD 4.6m in 2023 to USD 8.3m in 2024 as
a result of the growing operations of the region.
Net profit increase of 88% to USD 6.4m in 2024
from USD 3.4m in 2023 is underpinned by a
lower effective tax rate in the region compared
to 2023. The Group remains unable to extract
dividends from Myanmar.
Strategic Report
32
ASA International Group plc
Annual Reports and Accounts 2024
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asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
Pagasa Philippines’ operations grew over the last
12 months, despite of the natural calamities
affecting the operations:
• Number of clients increased from 333k to 353k
(up 6% YoY).
• Number of branches increased from 370 to 400
(up 8% YoY).
• OLP increased from PHP 3.4bn (USD 54.2m) to
PHP 3.4bn (USD 58.4m) (up 13% YoY in PHP).
• Gross OLP/Client increased from PHP 9.2k
(USD 165) to PHP 9.9k (USD 171) (up 9% YoY
in PHP).
• PAR>30 increased from 3.8% to 6.8%, mainly
due to the typhoons and heavy rainfalls
impacting both the clients’ repayment ability
and the working ability of the branches.
ASA Myanmar’s operations improved over the last
12 months despite facing military conscription law
and an unstable economy. As most of the
operational areas are located in relatively safer
zones, ASA Myanmar was able to focus on
effectively monitoring the operations, resulting in
a quality growth:
• Number of clients increased from 111k to 122k
(up 10% YoY).
• Number of branches increased from 88 to 89
(up 1% YoY).
• OLP increased from MMK 41.6bn (USD 19.8m)
to MMK 53.7bn (USD 25.6m) (up 29% YoY
in MMK).
• Gross OLP/Client increased from MMK 409.5k
(USD 195) to MMK 467.6k (USD 223) (up 14%
YoY in MMK).
• PAR>30 largely stable at 0.3%.
The Philippines Myanmar
Financial review (continued)
Regional head offices
Strategic Report
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ASA International Group plc
Annual Reports and Accounts 2024
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asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
West Africa
Net interest income
Net interest income increased by 8%, totalling
USD 47.7m in 2024, compared to USD 44.2m in
2023. While interest income in Ghana rose due to
increased demand from clients, Nigeria
experienced a reduction in the number of clients,
driven by economic challenges, which resulted
in lower interest income. Additionally, significant
local currency depreciation had an impact on the
overall results.
Net operating income
Net operating income improved by 15% to
USD 46.8m in 2024 from USD 40.6m in 2023,
due to lower credit loss expenses (2024: USD 0.9m,
2023: USD 3.7m), mainly driven by a portfolio
quality improvement in Nigeria.
Total operating expenses
The total operating expenses significantly
decreased by 13%, standing at USD 22.6m
in FY 2024 compared to USD 26.0m following
a decrease in both personnel expenses
(2024: USD 10.0m, 2023: USD 11.7m) and
other operating expenses (2024: USD 6.1m,
2023: USD 6.8m). As a result, cost-to-income
ratio developed to 36.2% in FY 2024 from 48.2%
in FY 2023.
Profitability
The profitability significantly improved regardless
the negative impact of the application of
hyperinflation accounting in both Ghana and
Sierra Leone. Profit before tax increased by 65%
to USD 24.2m in 2024 from USD 14.6m in 2023.
An improvement in tax position further supports
the net profit improvement, which has increased
by 105% reaching USD 15.4m in FY 2024
(2023: USD 7.5m).
Financial review (continued)
Growth of net operating income
15%
2024: USD 46.8m
2023: USD 40.6m
Growth of profit (after tax)
105%
2023: USD 15.4m
2023: USD 7.5m
Strategic Report
34
ASA International Group plc
Annual Reports and Accounts 2024
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asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ASA Savings & Loans operations overcame the
economic challenges within the country and
demonstrated tremendous performance with
excellent portfolio quality:
• Number of clients increased from 201k to 223k
(up 11% YoY).
• Number of branches increased from 143 to 153
(up 7% YoY).
• OLP increased from GHS 620.9m (USD 51.9m)
to GHS 993.3m (USD 67.5m) (up 60% YoY
in GHS).
• Gross OLP/Client increased from GHS 3.1k
(USD 259) to GHS 4.5k (USD 304) (up 45% YoY
in GHS).
• PAR>30 remained largely stable at 0.2%.
ASA Nigeria saw a mixed operational performance
despite high inflation levels, depreciating currency
and an unstable economy:
• Number of clients reduced from 184k to 150k
(down 19% YoY), as the price instability and
increasing interest rates in the country are also
affecting the willingness of clients to apply for
new loans.
• Number of branches increased from 263 to 269
(up 2% YoY).
• OLP increased from NGN 14.2bn (USD 15.8m)
to NGN 17.0bn (USD 11.0m) (up 19% YoY
in NGN).
• Gross OLP/Client increased from NGN 85.7k
(USD 96) to NGN 121.2k (USD 78) (up 41% YoY
in NGN).
• PAR>30 improved from 12.1% to 4.9% as a
result of improved KYC and due diligence
practices.
• New CEO appointed in October 2024 with
a deep financial services background.
ASA Sierra Leone saw a significantly improved
operational performance:
• Number of clients increased from 39k to 43k
(up 10% YoY).
• Number of branches increased from 46 to 49
(up 7% YoY) supporting the increase in client
reach.
• OLP increased from SLL 104.3m (USD 4.6m)
to SLE 143.4m (USD 6.3m) (up 37% YoY in SLE).
• Gross OLP/Client increased from SLL 2.8m
(USD 122) to SLE 3.5m (USD 155) (up 26% YoY
in SLE).
• PAR>30 increased from 4.6% to 9.4% as
collection efficiency reduced.
Ghana Nigeria Sierra Leone
Regional head offices
Financial review (continued)
Strategic Report
35
ASA International Group plc
Annual Reports and Accounts 2024
Discover more
asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
East Africa
Net interest income
Net interest income saw a significant improvement
of 37%, reaching USD 59.5m in FY 2024
(2023: USD 43.4m) as a result of operational
growth in all countries, supported by an OLP
growth of 40% YoY basis. The positive effect of
the increase in interest and similar income
(2024: USD 74.9m, 2023: USD 54.6m) is slightly
offset by an increase in interest and similar
expenses (2024: USD 15.2m, 2023: USD 11.2m)
due to higher level of third-part borrowings
across markets.
Net operating income
Net operating income increased by 42% up to
USD 56.6m in FY 2024 from USD 39.7m in FY 2023
mainly driven by an improvement in other
operating income generated by member admission
fee income in Kenya and a slightly lower credit loss
expense in the region compared to last year
(2024: USD 1.3m, 2023: USD 0.8m).
Total operating expenses
Total operating expenses increased by 15% during
2024 to USD 32.1m (2023: 27.9m) primarily due to
increase in personnel expenses (2024: USD 19.3m,
2023: USD 17.0m) following a salary adjustment
implemented after H1 2024. Despite of the
increase in expenses, the operational efficiency
improvement is proven by cost-to-income ratio
decreasing to 56.7% at FY 2024 from 69.5% at
FY 2023.
Profitability
Profit before tax improved from USD 11.9m in
FY 2023 up to USD 24.5m in FY 2024 as a result
of substantial interest income and other
operating income increase. Net profit increased
from USD 6.8m in FY 2023 to USD 15.4m in
FY 2024, which is also supported by an
improvement in effective tax rate.
Financial review (continued)
Growth of net operating income
42%
2024: USD 56.6m
2023: USD 39.7m
Growth of profit (after tax)
127%
2024: USD 15.4m
2023: USD 6.8m
Strategic Report
36
ASA International Group plc
Annual Reports and Accounts 2024
Discover more
asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ASA Tanzania expanded its operations
over the last 12 months:
• Number of clients increased from
248k to 280k (up 13% YoY) as the
more favourable loan terms are
attracting an increased number of
clients.
• Number of branches increased from
202 to 221 (up 9% YoY).
• OLP increased from TZS 162.5bn
(USD 64.7m) to TZS 205.0bn
(USD 84.4m) (up 26% YoY in TZS).
• Gross OLP/Client increased from
TZS 660.4k (USD 263) to TZS 740.0k
(USD 305) (up 12% YoY in TZS).
• PAR>30 slightly increased to 1.3%
from 0.9%.
ASA Kenya expanded its operations
over the 12-month period overcoming
stiff competition in the market:
• Number of clients increased from
205k to 262k (up 28% YoY).
• Number of branches increased from
132 to 145 (up 10% YoY) in order to
respond to increased client demands.
• As a result, OLP increased from KES
3.3bn (USD 20.9m) to KES 4.7bn
(USD 36.3m) (up 43% YoY in KES).
• Gross OLP/Client increased from
KES 15.9k (USD 101) to KES 18.0k
(USD 139) (up 13% YoY in KES).
• PAR>30 remained stable at 0.3% as
ASA Kenya continued to monitor
disbursement quality meanwhile
increasing its loan portfolio.
ASA Uganda saw a significant
improvement in operations over the last
12 months:
• Number of clients increased from
121k to 150k (up 24% YoY).
• Number of branches increased from
120 to 125 (up 4% YoY).
• OLP increased from UGX 49.3bn
(USD 13.0m) to UGX 68.4bn
(USD 18.6m) (up 39% YoY in UGX).
• Gross OLP/Client increased from
UGX 405.5k (USD 107) to UGX
456.7k (USD 124) (up 13% YoY in
UGX).
• PAR>30 improved from 0.8%
to 0.2%.
• A new CEO was appointed in 2024
which has already resulted in a
significant financial and operational
improvement.
ASA Rwanda saw a strong improvement
in operations over the last 12 months:
• Number of clients increased from
21k to 23k (up 10% YoY).
• Number of branches increased from
32 to 37 (up 16% YoY).
• OLP increased from RWF 5.1bn
(USD 4.0m) to RWF 6.8bn
(USD 4.9m) (up 34% YoY in RWF).
• Gross OLP/Client increased from
RWF 253.0k (USD 201) to RWF
316.7k (USD 228) (up 25% YoY in
RWF). There is an emphasis on
branches located in urban areas to
disburse to clients who have a
capacity to take on higher loan sizes.
• PAR>30 improved from 6.8%
to 5.1%.
• A new CEO was appointed in 2024
which has already resulted in a
significant financial and operational
improvement.
Tanzania Kenya Uganda Rwanda Zambia
Regional head offices
Financial review (continued)
ASA Zambia expanded its operations:
• Number of clients increased from
25k to 28k (up 15% YoY).
• Number of branches increased from
31 to 39 (up 26% YoY).
• OLP increased from ZMW 73.8m
(USD 2.9m) to ZMW 87.8m
(USD 3.1m) (up 19% YoY in ZMW).
• Gross OLP/Client increased from
ZMW 3.1k (USD 119) to ZMW 3.2k
(USD 114) (up 3% YoY in ZMW).
• PAR>30 increased from 2.6% to
3.4%, as branch operations were
affected by the general country
power deficit situation.
Strategic Report
37
ASA International Group plc
Annual Reports and Accounts 2024
Discover more
asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
Risk management
Risk management is central to
the Group’s business model.
Risk management framework
The Group continuously strengthens its risk
management framework to address evolving
challenges and risks, ensuring it aligns with the
needs of a sustainable financial institution. As a
microfinance operator, the Group adopts a prudent
and consistent approach to managing risk. Its risk
culture is shaped by its core values, beliefs,
knowledge, attitude, and risk awareness across its
diverse operations. The Group evaluates its risk
landscape by identifying and assessing both
quantifiable and non-quantifiable risks, which are
then embedded into its management and decision-
making processes.
Identification and assessment
At the subsidiary level, the Risk Management Unit
is responsible for continuously identifying and
assessing both existing and emerging risks.
It collaborates with risk owners to implement
mitigation measures and actively monitors risk
levels. These efforts are documented in risk reports
for management review. The subsidiary-level Risk
Management Coordination Committee reviews the
risk reports, which are then approved by the
subsidiary CEO before being presented to the
subsidiary Audit and Risk Committee (‘ARC’). The
Group Risk Management team consolidates these
country risk reports to create a comprehensive
Group risk report. This report is discussed at the
Executive Committee meeting before being
presented to the Group ARC, where it is thoroughly
reviewed and recommendations are made to
enhance risk management efforts.
Read the principal risks on page 40
Read the viability statement on page 104
Risk appetite
Risk appetite, or the amount and type of risk that the
Group is willing to accept, tolerate, or expose itself to
in pursuit of its business objectives, is set at a level to
avoid material loss, fraud and operational
inefficiencies. The Group establishes its risk appetite
to provide direction and set boundaries for risk
management across its microfinance institutions.
The Group targets more conservative financial and
prudential ratios than required by regulators in the
countries of operation whilst ensuring full compliance
with all local regulations and laws. The Group also has
zero tolerance for any unethical, illegal or
unprofessional conduct and maintains a zero appetite
for association with any disreputable individuals.
The Group reviews its risk appetite on a quarterly
basis by preparing a comprehensive risk appetite
report based on Key Risk Indicators (KRIs). These
KRIs are assigned tolerance levels, which are
established based on various factors, including the
regulatory landscape, budget constraints, historical
trends, and future projections. The tolerance levels
are periodically reviewed and adjusted, if necessary,
following recommendations from the Executive
Committee (‘ExCo’), Asset and Liability Committee
(‘ALCO’), or ARC. This dynamic approach ensures that
the Group’s risk appetite remains aligned with
evolving business conditions and strategic objectives.
Risk appetite statement
ASA International has a moderate risk appetite.
We strive for a balanced approach, accepting risks
associated with investing in microfinance operations
in emerging markets while prioritising prudent risk
management to safeguard the interests of our clients,
investors, and stakeholders. Our commitment to a
high level of compliance, strict adherence to
well-defined operational procedures, and a focus on
sustainable financial inclusion are the basis of our
dedication to achieving social economic impact for
our clients and generating sustainable financial
returns for the Company.
Risk management framework
1 Defines high-level strategy. Ensures the Group has effective risk management
policies in place. Approval of the risk management framework, risk principles
and risk appetite.
2 Sets risk appetite and strategy, frameworks and principles
to be recommended to the Board. Identifies new and
emerging risks
3 Senior management determines risk appetite
4 Senior management defines governance, risk and compliance
framework including principal processes and procedures
5 Three lines of defence model implemented
at all levels of the Group
6 Frequent reporting at the country level as well
as from country to Group level to identify key risk
areas and prioritise risks likely to occur
7 Development of risk culture
throughout the organisation
8 Day-to-day management of risks
as per three lines of defence model
Governance framework
Three lines of defence
Risk and control cycle from
identification to reporting
Primary risk categories
Risk culture
Risk resources
and capabilities
1
Senior
management role
Risk appetite
Board
role
1 Ensuring the resources are in place to effectively implement the risk management
framework and that staff are equipped with necessary expertise.
Strategic Report
38
ASA International Group plc
Annual Reports and Accounts 2024
Discover more
asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
Risk management
(continued)
Three lines of defence
The first line of defence in a microfinance company
comprises operational staff, such as loan officers
and branch managers, responsible for managing
risks in daily activities. They ensure compliance
with policies, conduct client due diligence to
prevent fraud and over-indebtedness, and maintain
accurate records to minimise errors. Internal
controls, like dual approvals, are used to safeguard
processes and enhance risk management.
The second line of defence at the Group’s
subsidiaries provides guidance and oversight of the
activities performed by the first line of defence.
It includes internal oversight functions such as
Compliance, Risk Management, and the Fraud and
Misappropriation Prevention Unit (‘FMPU’).
The third line of defence is Internal Audit at both
the Group level and the microfinance institution
level. In addition to regularly performing internal
auditing activities, Internal Audit ensures that all
units responsible for managing risk are performing
their roles effectively and efficiently.
For more information about the Group’s
three lines of defence, visit the website
Principal risks
Details of the Group’s key risk management areas
can be found on page 40. This section should not
be regarded as a complete and comprehensive
statement of all potential risks and uncertainties
faced by the Group but rather those which the
Group currently believes may have a significant
impact on its performance and future prospects.
Emerging risks
Emerging risks are potential threats or uncertainties
that have recently emerged or developed, often
characterised by their unpredictability and potential
for significant impact. ASA International conducts
quarterly risk assessments at all entities, which are
performed by the respective risk officers and
reviewed by the entity-level Risk Management
Coordination Committee. During these assessments,
emerging risks are discussed and if a risk is identified
that is not covered by the Group risk taxonomy, it is
communicated to the Group. On an annual basis, the
Group Risk Management function reviews and, if
necessary, updates the risk taxonomy to include any
newly identified emerging risks. The senior
management discussions during the Group-level
ExCo, ALCO or ARC meetings may also serve as a
source for identifying emerging risks. In addition,
the Group Risk Management function is subject to
internal audit, which may result in recommendations
to identify certain emerging risks as part of the
internal audit review process.
Two emerging risks have been identified. In 2024,
Ghana and Sierra Leone saw inflation surpassing
100% over three years, prompting the adoption of
hyperinflation accounting in the Group’s financial
statements, leading to non-cash adjustments.
Nigeria and Myanmar are on the watch list for
potential hyperinflation in the coming year as they
continue to experience high inflation rates.
We have seen an increase in physical climate risk
during the year. The Philippines has been hit by an
increased number of natural disasters, including
16 typhoons, which have impacted field operations.
As a result, the Portfolio at Risk (‘PAR’) in the
Philippines has risen due to these calamities.
Zambia faced a major drought, affecting agriculture
and reducing hydroelectric power generation,
prompting the government to lower its economic
growth forecast for the year.
Three lines of defence
Board of Directors
Establishes the risk strategy and regularly reviews risk appetite.
Approves frameworks, methodologies, policies and responsibilities.
Operational
management
First line of defence
Line management in
each business area
The primary responsibility
is to own and manage risks
relating to daily operation
Risk management,
Compliance and FMPU
Second line of defence
Internal oversight functions
To identify risks in the daily
operations and provide an
independent oversight
role to the first line
Supports and challenges
the first line
Internal Audit
Third line of defence
Internal Audit function
To provide objective and
independent assurance
on the first and second
line functions
Strategic Report
39
Discover more
asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
S
t
r
a
t
e
g
i
c
r
i
s
k
s
L
e
g
a
l
&
c
o
m
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l
i
a
n
c
e
r
i
s
k
s
I
T
r
i
s
k
s
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a
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i
s
k
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o
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i
s
k
s
1.1
1.7
1.2
1.3
1.5
1.6
1.4
2.2
2.1
2.3
3.1
3.2
3.3
3.4
4.3
4.4
4.1
4.2
5.1
5.2
5.3
5.4
5.6
5.5
5.7
Principal risk refers to a key or
significant risk that has the potential
to materially impact the institution’s
financial stability, operational
performance, or reputation.
The broad category of principal risks in the Group
risk taxonomy consists of strategic risk, operational
risk, financial risk, IT risk, and legal & compliance
risk. Identifying and managing principal risks are
critical to ensuring the sustainability and resilience
of the organisation. Compared to the previous year,
tax compliance risk has risen due to increased tax
burdens in certain jurisdictions. Growth risk has
reduced, driven by improved performance and
profitability in operational entities. Additionally,
IT business continuity and system vulnerability risks
have increased due to new system implementations
and the continuous evolution of cyber threats.
1. Financial risks
1.1 Credit
1.2 Liquidity
1.3 Exchange rate
1.4 Inflation rate
1.5 Interest rate
1.6 Concentration
1.7 Tax
2. Legal & compliance risks
2.1 Regulation
2.2 Client protection
2.3 Anti-money laundering
3. Strategic risks
3.1 Growth
3.2 Competition
3.3 Reputation
3.4 Climate
4. Operational risks
4.1 Human resource
4.2 Fraud & Integrity
4.3 Business contingency
4.4 Health & Safety
5. IT risks
5.1 Business continuity
5.2 System vulnerability & cyber security
5.3 Data privacy & protection
5.4 IT support
5.5 System access control
5.6 IT fraud
5.7 Data migration & transformation
Risk management
(continued)
Risk map
Principal risks
Risk level
Low
When the risk is within the tolerance
level of the organisation and may cause
insignificant impact on its ability to
achieve its goals and objectives, or may
have minor impact from a financial, legal,
regulatory and reputational standpoint.
Medium
When the risk is at the boundary of the
tolerance level of the organisation and
may cause moderate impact on achieving
the goals and objectives, or may have
moderate impact from a financial, legal,
regulatory and reputational standpoint.
High
When the risk crosses the tolerance level
of the organisation and may significantly
impact its ability to achieve goals and
objectives, or may have a major impact
from a financial, legal, regulatory and
reputational standpoint.
Strategic Report
40
Discover more
asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
Risk
Risk grade and
level of change Change in 2024 How we mitigate our risks/next steps
1. Financial risk
1.1
Credit risk
The risk that the Company will incur a loss
because its clients or counterparties fail
to discharge its contractual obligations.
Objective
To ensure that the portfolio at risk
(‘PAR’) is kept at a minimum percentage
at all times.
Medium
The Group’s PAR has slightly increased compared to the
previous year due to deterioration in India, the Philippines
and Sierra Leone. However, it is within the tolerance
benchmark of the Company.
Pakistan, Ghana, Kenya and Uganda achieved high portfolio
quality with PAR>30 less than 1%.
Although PAR > 30 remains within an acceptable range, the Group is confident it can
reduce it further based on past experience.
Due to the economic challenges in some markets, including rising energy and food prices,
the Company will remain prudent in disbursements and closely monitor clients’ debt levels.
The Company strictly follows the ASA Model’s operating procedures, including setting risk
limits per borrower, taking security deposits where possible, preventing over-borrowing
and excessive geographic concentration.
The Group continuously monitors portfolio changes and takes immediate action.
Country-specific efforts to increase collections and reduce PAR are taken.
The Company is highly supportive of the establishment of local credit bureaus.
1.2
Liquidity risk
The Company’s operations may be
impacted if it is unable to meet its
payment obligations when it falls due
under normal and stress circumstances.
Objective
To manage liquidity risks and avoid loss of
business, missed opportunities for growth,
or legal or reputational consequences.
Medium
The Group has maintained its liquidity position during the year
and successfully met the liquid asset regulatory requirements in
each jurisdiction. Meeting the funding requirements in some of
the Asian countries, including India, Sri Lanka and Myanmar,
proved difficult due to specific country circumstances.
Exchange losses during the year affected the Group dividends
received from operating subsidiaries. However, the Group
continued to raise a substantial amount of debt funding both at
the country and Group level during the year. Funding costs of
the holding have improved in 2024 compared to 2023 because
of improved pricing on funding.
The Group has a strong funding pipeline of USD 121 million.
Although economic uncertainty may impact funding markets, the Company is diversified
across thirteen countries with good access to a wide range of funding sources at both local
and holding levels.
The Company is approaching new potential funders to broaden partnerships across markets.
The Company maintains solid relationships with its debt providers, who continued to show
strong interest in funding its operations at both local and holding level.
The Company remains vigilant towards the deterioration of its loan portfolio that may lead
to liquidity concerns.
The Asset Liability Committee (‘ALCO’) Committee regularly reviews the cash and liquidity
position of the Group.
1.3
Exchange rate risk
The Company may suffer a financial loss
arising from adverse movements in foreign
exchange rates.
Objective
To manage currency risks and minimise
loss due to foreign currency exposure.
High
The local currencies of some of the countries saw increased
vulnerability against the USD. During the year, local currencies
have sharply depreciated against the USD, mainly in Ghana,
Nigeria, and Rwanda. Depreciation of currencies reduced the
reported Outstanding Loan Portfolio (‘OLP’) and Gross OLP/
Client figures in USD.
Overall, the currency movements resulted in an increase
of the foreign exchange (‘FX’) translation reserve losses.
The Group has existing hedge relationships and manages its currency risk through natural
hedging, i.e. by matching the relevant microfinance subsidiary’s local currency assets with
local currency liabilities, and by obtaining funding denominated in local currency.
For USD funding to the subsidiaries, the Company continues to ensure that close to 100%
of its currency exposure is hedged. The Group’s equity positions are unhedged.
The currency movements of the Company’s operating currencies against
the USD remain unpredictable.
The ALCO regularly reviews exchange rate risk.
Risk management (continued)
Principal risks (continued)
Level of change key
Risk decreasing Risk remains stable Risk increasing
Strategic Report
41
ASA International Group plc
Annual Reports and Accounts 2024
Discover more
asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
Risk
Risk grade and
level of change Change in 2024 How we mitigate our risks/next steps
1. Financial risk (continued)
1.4
Inflation rate risk
The Company’s profitability or operational
cost may be impacted by the rise in
inflation rates.
Objective
To limit the impact by controlling
expenditure and adjusting the loan size.
High
There is high inflation rate in some of the countries including
Myanmar, Nigeria, Ghana, Sierra Leone and Zambia.
This situation is reducing the purchasing power of our target
clients as well as employees and adversely impacting their
day-to-day lives.
High inflation is increasing the overall cost of the Company.
Ghana and Sierra Leone saw inflation surpassing 100% over
three years, prompting the adoption of hyperinflation
accounting in the Group’s financial statements, leading to
non-cash adjustments. Nigeria and Myanmar are on the watch
list for hyperinflation for 2025.
The loan size is reviewed on at regular intervals and increased if needed.
Employees salaries are reviewed periodically and increments are given.
Non-essential costs are avoided to control costs.
1.5
Interest rate risk
The Company’s profitability or results
of operations may be impacted by
fluctuations in interest rates.
Objective
To limit the impact of interest rate
movements and exposure to financial
counterparties.
Medium
Borrowing costs are increasing globally. They are expected
to rise further, considering the global economic downturn.
However, costs of borrowing for the Group have remained
stable, although with increased hedging costs in some
markets.
The Company continuously negotiates with its lenders and interacts with regulators.
The interest rate caps in India and Sri Lanka were removed and the Company increased
its rates in these markets.
The Company’s strategy in evaluating and managing its interest rate risk is to conduct
a cost of funds analysis and to monitor interest rates in those countries where there is
a limit on the amount of interest it may charge.
The ALCO regularly reviews interest rate risk.
1.6
Concentration risk
High concentration of portfolio in a
specific geographic area may amplify the
impact of adverse economic events.
Objective
To ensure that the portfolio of the Group
is well diversified.
Medium
A high percentage of the total OLP is concentrated in four
countries; Pakistan, the Philippines, Ghana and Tanzania.
Earnings Before Tax (‘EBT’) concentration is highest in Ghana.
However, it does not exceed the tolerance benchmark of
the Group.
Senior management is focusing on growing the business
in other countries to reduce the concentration level in the
above-mentioned countries.
The portfolio of the Group is diversified across thirteen countries.
Our country portfolio is diversified across various regions and sectors/industries.
The Group has a concentration risk policy which monitors the concentration risk
and aims to improve the diversification.
The ALCO regularly reviews concentration risk.
Risk management (continued)
Principal risks (continued)
Level of change key
Risk decreasing Risk remains stable Risk increasing
Strategic Report
42
ASA International Group plc
Annual Reports and Accounts 2024
Discover more
asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
Risk
Risk grade and
level of change Change in 2024 How we mitigate our risks/next steps
1. Financial risk (continued)
1.7
Tax risk
The Group may face adverse
consequences due to failure to adhere
to tax laws and regulations.
Objective
To ensure compliance to applicable tax
regulations at all times.
High
The Group faces tax-related risks in several countries,
including Pakistan, Ghana, Tanzania, and Rwanda, where
tax authorities may impose high tax assessments. These
challenges can reduce profits due to increased tax liabilities,
and lead to potential financial exposure.
To mitigate these risks, the Group remains committed to staying updated on evolving
tax regulations and ensures that detailed records are maintained to support compliance.
Additionally, the Group engages external tax consultants for expert advice on critical
matters and actively works with local tax authorities to resolve any issues and maintain
a cooperative relationship.
2. Legal & compliance risk
2.1
Regulation risk
The Company may suffer losses or fail
to optimise profitable growth due to
regulatory changes or through political
activism.
Objective
To ensure that effective arrangements
are in place to comply with legal and
regulatory obligations at all times.
Medium
The Group continues to seek regulatory resilience in countries
where licence limitations could negatively impact future
growth and is seeking to be fully regulated across a number
of markets and will progress obtaining microfinance banking
licences in Tanzania and Kenya.
ASA Pakistan received a microfinance banking licence from
the State Bank of Pakistan, which comes with increased
compliance requirements.
The Group plans to divest its India operations in 2025 and
has applied to the Reserve Bank of India to surrender its
NBFC-MFI license.
ASA Pakistan will proactively continue to ensure compliance with the Central Bank.
The Group will continue to enhance its Compliance monitoring activities with a focus
on providing independent oversight over the appropriateness and effectiveness of
regulatory controls within its businesses.
2.2
Client protection risk
Risk of reputational loss for not ensuring
client protection and transparency.
Objective
To ensure that business processes for
product delivery and design adhere to
the Client Protection Principles (‘CPP’).
Low
There have been no significant changes in this area. However,
in some countries there is increased scrutiny by regulators
and markets regarding client protection.
A client protection assessment of the Group confirmed overall
alignment with the CPP set by Cerise+SPTF, with a few areas
identified for improvement.
Our service is offered in a client-friendly and transparent manner. The Company
adopted the SMART campaign principles, which are a common standard in the industry.
The Company strives to meet the highest standard in terms of Client Protection
Principles and business transparency.
Client feedback is collected on a regular basis to improve client interaction.
Address recommendations from CPP assessment.
Risk management (continued)
Principal risks (continued)
Level of change key
Risk decreasing Risk remains stable Risk increasing
Strategic Report
43
ASA International Group plc
Annual Reports and Accounts 2024
Discover more
asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
Risk
Risk grade and
level of change Change in 2024 How we mitigate our risks/next steps
2. Legal & compliance risk (continued)
2.3
Anti-money laundering risk
Threat arising from inadequate measures
to prevent and address anti-money
laundering (‘AML’).
Objective
To ensure that anti money laundering
procedures are well established.
Low
Risk is inherently low due to the nature of small loans.
Money laundering-related incidents are very rare.
An AML policy is in place and AML officers are appointed at the entity level.
A rigorous Know Your Customer (‘KYC’) procedure is established.
A suspicious transactions reporting procedure is in place.
3. Strategic risk
3.1
Growth risk
All risks and challenges associated with
the Company’s operational expansion.
Objective
To meet our business expansion plan
in a controlled manner.
Medium
During the year, the majority of countries demonstrated
improved performance.
The Group plans to divest from India due to declining
performance, as the entity is no longer supporting growth.
The political situation in Myanmar and associated
governmental measures have curbed business.
In Sri Lanka, growth had been stalled due to political and
economic instability, but the country situation is now showing
strong signs of improvement.
High inflation in the economy remains a challenge for
portfolio growth in both Nigeria and Sierra Leone.
In January 2025, the Board of ASA India submitted an application to the Reserve Bank
of India to relinquish its NBFC-MFI license. This decision was driven by the need to
cut costs amid a weakening financial position, liquidity challenges, and ongoing
lender defaults.
New loans are not being disbursed in the high-risk zone of Myanmar. Branches in
the high-risk zones have been closed or merged.
Economic and political stability are returning to Sri Lanka, and the Group is focused
on turning the business around.
The Group continues to strengthen the Leadership and Management across the Group
and appointed new CEOs in countries such as Nigeria, Rwanda and Uganda in 2024.
3.2
Competition risk
The Company may suffer losses or fail
to optimise profitable growth by not
responding well to the competitive
environment or failing to ensure its
proposition meets customer needs.
Objective
To understand competition threats and stay
client-focused.
Medium
Competition has remained stable or is increasing in some
markets, possibly due to stabilisation of the post pandemic
economy and the increasing trend of digital lending. Digital
lenders and services remain active in African countries,
creating competition on the digital frontier.
The Company’s portfolio reduction strategy in India has
resulted in the loss of clients to competitors.
The Company emphasises the importance of building and sustaining robust client
relationships and customises its products and services to cater to clients’ needs.
The Company continuously monitors client satisfaction.
In anticipation of a future with increasingly cashless transactions, the Company is
developing a digital financial services platform, which over time also will include a range
of digital financial services.
Risk management (continued)
Principal risks (continued)
Level of change key
Risk decreasing Risk remains stable Risk increasing
Strategic Report
44
ASA International Group plc
Annual Reports and Accounts 2024
Discover more
asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
Risk
Risk grade and
level of change Change in 2024 How we mitigate our risks/next steps
3. Strategic risk (continued)
3.3
Reputation risk
The Company may suffer financial or
reputational damage due to possible
misconception of the quality of its services.
Objective
To be fully aligned with the long-term
interests of clients.
Low
The Company has not faced significant reputational issues.
The Company strengthened its relationships with clients
and communities through close interaction and by investing
in community projects in operating subsidiaries.
The Company’s clearly defined corporate values and ethical standards are
communicated throughout the organisation, its customer base and other stakeholders.
The Company’s impact is measured via the Client Economic Yield survey (‘CEY’).
Read more about impact on page 12 and in the ESG report on page 56
The Company maintains close relationships with clients and the broader communities
in which it operates.
3.4
Climate risk
The risk related to potential negative
impact of climate change on the
organisation.
Objective
Committed to sustainability, emission
reduction, and climate risk response.
Medium
The Company monitors carbon emissions and implements
GHG reduction initiatives across subsidiaries.
In the Philippines, 16 typhoons have disrupted field
operations, increasing PAR.
Zambia’s severe drought has impacted agriculture and
hydroelectric power, leading to a power crisis.
The Company analysed two climate scenarios (<2°C and >3°C
by 2050), concluding that its strategy and financial position
are well-equipped to remain resilient in the long term.
Operating subsidiaries proactively address climate risks through targeted actions and
strong governance. This year’s initiatives included tree planting, solar panel installation,
electric motorbike adoption, and knowledge-sharing programmes.
Read more in the Taskforce for Climate-related Financial Disclosures (‘TCFD’) statement on pages 65 to 79
The Company stays in close contact with clients during calamities, providing relief.
In the Philippines, the increase in PAR is addressed through enhanced collections
via regular and digital channels, along with strengthened monitoring systems and
internal controls.
Read more about how the Company supports clients during calamities on page 62
4. Operational risk
4.1
Human resource risk
The Company’s strategy may be impacted
by not having sufficient skilled people or
being unable to retain key people and not
treating them in accordance with the
Company’s values and ethical standards.
Objective
To have sufficient personnel to meet
growth objectives.
Medium
The Company strengthened leadership by appointing CEOs,
CFOs, and key department heads across subsidiaries.
Staff retention remained stable overall but was lower in the
Philippines, Myanmar, and Rwanda.
Skilled worker shortages were noted in Myanmar, Sri Lanka,
and Sierra Leone.
Additional IT staff were hired to support digital expansion.
No employee strikes or disruptions occurred during the year.
The Company ensures that remuneration is competitive and carries out regular reviews
as well as annual increments.
The Company continuously monitors performance which allows career growth for
high-performing employees.
Staff can file any complaints or misconduct experienced at a Grievance Mitigation
Committee.
Risk management (continued)
Principal risks (continued)
Level of change key
Risk decreasing Risk remains stable Risk increasing
Strategic Report
45
ASA International Group plc
Annual Reports and Accounts 2024
Discover more
asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
Risk
Risk grade and
level of change Change in 2024 How we mitigate our risks/next steps
4. Operational risk (continued)
4.2
Fraud & integrity risk
The risk of incidents of fraud and
misappropriation by staff or client.
Objective
To have procedure in place to prevent and
detect fraud & misappropriation events
carried out by staff or clients.
Medium
As at December 2024, the overdue balance remains high in
some of the countries which increases the risk exposure.
Nigeria and the Philippines saw more incidents than other
countries, while Myanmar’s evolving security situation has
increased the risk of robberies.
The lack of biometrics in the IT platform increases the
exposure to fraud and misappropriation.
The escalation of living expenses due to inflation may lead
to higher levels of attempted fraud.
Regular visits by the Fraud and Misappropriation Unit (‘FMPU’) and Internal Audit team
take place to identify and prevent fraud. FMPU members conduct an awareness
programme at branches to discourage fraud and misappropriation.
FMPU members recommend appropriate disciplinary measures for the perpetrators in
accordance with entity policy, take necessary actions to recover the misappropriated
amount, and pursue legal action, if necessary.
Biometric registration, use of OTP and SMS for disbursement/withdrawal was
introduced in the Philippines.
4.3
Business contingency risk
Potential adverse effects on operations
resulting from unexpected events
or disruptions.
Objective
To ensure that there is adequate business
contingency planning for smooth running
of operations.
Medium
Business contingency risk is generally low, as the Group
maintains redundant servers and data recovery sites at all
entities.
he use of real-time AMBS and Temenos core banking systems
introduces a medium-level risk, primarily due to potential
internet slowdowns, shutdowns, or unforeseen server issues.
In the Philippines, natural calamities occasionally disrupt
branch operations. These events are seasonal, and branch
offices are well-prepared to manage such disruptions.
As per current practice, remote working will be enabled in case head office becomes
inaccessible due to a catastrophic incident.
We have secure Disaster Recovery (‘DR‘) sites either on the premises or on cloud at
all the entities.
If a branch becomes inaccessible due to a disaster, activities can be conducted from
the nearest safe branch.
4.4
Health & safety risk
Potential harm or injury to employees
arising from workplace conditions
or activities.
Objective
To ensure a safe and secure work
environment for staff.
Low
There were no threats arising from epidemic or pandemic
during the year. Workplace safety is ensured as a high priority.
There were 222 health & safety incidents and accidents
across the Group, the majority of which related to
motorcycles. However, there were no incidents of fatality
related to health and safety.
The Company ensures valid licences, safety equipment and road safety awareness
among employees to mitigate the risk exposure of road accidents.
Operating subsidiaries with increased incident rates will increase their vigilance on
health and safety to minimise fatalities and accidents and will reiterate this during
staff training.
Movement restrictions are applicable to employees in areas that are very prone to
robbery incidents.
Risk management (continued)
Principal risks (continued)
Level of change key
Risk decreasing Risk remains stable Risk increasing
Strategic Report
46
ASA International Group plc
Annual Reports and Accounts 2024
Discover more
asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
Risk
Risk grade and
level of change Change in 2024 How we mitigate our risks/next steps
5. IT risk
5.1
Business continuity risk
The risk of system unavailability.
Objective
To ensure that systems are available within
a reasonable time.
Medium
IT business continuity risk is now classified as medium due to
increased likelihood of internet slowdown or shutdown next
to server or datacentre related issues as we are working with
real time banking system and Dhaka serves as the primary
IT support provider for multiple countries, stable internet
connectivity is crucial.
All countries have Disaster Recovery (‘DR’) sites, either on premise or on cloud.
Yearly DR drills to ensure smooth functioning of the process.
Reliable and seamless internet connectivity is maintained.
5.2
System vulnerability
& cyber security risk
This risk is associated with the
vulnerability to different types of
cyber-attacks.
Objective
To ensure that the IT stack is protected
against vulnerabilities.
Medium
The risk is classified as medium due to the evolving nature of
cyber threats.
Some inherent system vulnerabilities in AMBS will be gradually
mitigated with the planned migration to Temenos Transact
(‘T24’).
Quarterly review of all firewall configurations and Vulnerability Assessment by the
internal team.
Yearly third-party Vulnerability Assessment and Penetration Testing is done.
There is deployment of endpoint detection and response, regular patch management,
and use of an intrusion prevention system in the firewall.
Setup of Security Operations Center to strengthen ASA cybersecurity posture for
monitoring, detecting and responding to cybersecurity threats in real time.
5.3
Data privacy & protection risk
Risk arising from unauthorised access to
sensitive information.
Objective
To ensure data security and confidentiality
Low
Risk is low as customer data and other sensitive data are well
protected and accessible to only authorised personnel and
there is no online access by clients to any of the systems used
by the Company..
However, with increased regulatory scrutiny on data
protection, this risk is expected to rise.
Only authorised individuals are allowed to get access to sensitive data. System data is
protected by password.
Employee training includes the importance of customer data privacy.
The active directory is regularly reviewed and the implementation of Privileged Access
Management tool controls access to servers.
5.4
IT support risk
Refers to speed and quality of resolving
IT issues with operational impact.
Objective
To have procedures and resources in place
to address and resolve IT support issues.
Low
There may be delays in IT support sometimes due to the
nature and complexity of problems.
Sourcing and retaining experienced IT staff in Dhaka and
across operating subsidiaries remains a challenge.
Blocking issues are resolved in the same or next working day. Other issues are resolved
over a longer time frame, depending on the complexity of the problem.
Risk management (continued)
Principal risks (continued)
Level of change key
Risk decreasing Risk remains stable Risk increasing
Strategic Report
47
ASA International Group plc
Annual Reports and Accounts 2024
Discover more
asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
Risk
Risk grade and
level of change Change in 2024 How we mitigate our risks/next steps
5. IT risk (continued)
5.5
System access control risk
Associated with misuse of system access.
Objective
To have strong password management
system to prevent any misuse of access.
Low
Implementation of two factor authentication (‘2FA’) in AMBS
has reduced password sharing incidents. For login to the
system, a One-Time-Password (‘OTP’) is sent via email for
enhanced password security.
2FA is has been rolled out across all markets.
Standard password policies are implemented in the system and software. The password
policy is reviewed periodically and improved as appropriate.
Awareness programmes on avoiding sharing passwords and other security concerns.
Implement Privileged Access Management tool and Monitoring of suspicious login
via SOC.
5.6
IT fraud risk
Refers to the threat of fraud due to control
gaps in IT systems and processes.
Objective
To ensure that discrepancies between
system and procedures are identified
and mitigated to prevent digital fraud.
Low
No serious IT fraud incidents were reported across the
subsidiaries during the year.
Digital financial services may create scope for digital fraud in
the future.
Incidents of digital fraud may happen in the future. All relevant teams will remain
vigilant to prevent and escalate such cases.
Maker checker system and audit trail feature are active in AMBS.
Following roll-out of DFS App check Play Store to ensure no fraudulent ASA app.
SOC and PAM are mitigations for fraud, monitoring access to our systems.
5.7
Data migration &
transformation risk
The risk of errors, data loss, or
inconsistencies during data transfer
and conversion to a new system.
Objective
To implement sufficient measures and
backups to prevent data loss and ensure
a smooth transition to the new system.
Medium
All subsidiaries will migrate over time from AMBS to a
full-fledged Core Banking System (‘CBS’). Risk is medium due
to the possibility of potential loss, inconvenience that may
occur during migration or reporting challenges after migration
due to report design or system understanding issues.
Pakistan has already migrated to CBS (T24 – Financial
Inclusion Suite). Ghana, Tanzania and Kenya are next in line
for CBS implementation.
The Group is using an industry-leading migration tool.
The Group has acquired a highly skilled implementation and migration vendor and has
employed in-house migration experts.
Migration runbook includes multiple validations of migrated data by business teams and
sign-off by responsible head of departments.
Essential reporting processes are tested after dress rehearsal.
Risk management (continued)
Principal risks (continued)
Level of change key
Risk decreasing Risk remains stable Risk increasing
Strategic Report
48
ASA International Group plc
Annual Reports and Accounts 2024
Discover more
asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
PROFESSIONALISM BROADEN PRODUCTS
AND SERVICES
INTEGRITY
Feature story – Our communities
In 2024, ASA Kenya launched its first-ever
training program to equip farmers with
climate-smart agriculture techniques,
conducting four training events in Kajiado,
Narok, Nanyuki, and Wote.
These regions, classified as arid or semi-
arid, are among the hardest hit by
unfavourable climate conditions. Through
these sessions, 228 client-farmers were
trained on innovative strategies to
enhance resilience against drought and
improve agricultural sustainability.
Farming for the future:
Climate-smart solutions
empowering Kenyan
farmers
The first training took place on March 25, 2024,
in Mashuru, Kajiado County, where 58 farmers
participated. Led by Dr. Alice Ruto from the Kenya
Professional Association of Women in Agriculture
and Environment (KEPAWAE), the training focused
on equipping farmers with practical knowledge on
climate-smart agricultural practices. With drought
being the region’s greatest challenge, the training
emphasized soil and water management, integrated
soil fertility management, and both crop and
livestock production strategies tailored to a
changing climate.
SDGs Values
No. of client farmers trained
228
Read more on our website
www.asa-international.com
Continued on next page
Strategy
49
ASA International Group plc
Annual Reports and Accounts 2024
Discover more
asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
Strategic Report
Feature story – Our communities
(continued)
Key topics included:
• Understanding climate change and
its impact on the environment and
human life.
• Techniques for conserving soil fertility
and managing water resources.
• Climate-smart practices for crop
and livestock production.
• Smart farming strategies, such as
rotational grazing and diversifying
farming practices.
As a result of the positive reception and impact of
these trainings, ASA Kenya has planned three
additional training events in 2025 to reach more
farmers in different locations. Additionally, two
demonstration projects will be rolled out, including
a rabbit farming initiative, set to begin in March
2025, which is considered a more sustainable
livestock option due to its low resource
requirements, fast reproduction rates, and minimal
environmental impact. Through these ongoing
programs, ASA Kenya aims to strengthen farmers’
ability to adapt to climate change, protect their
livelihoods, and ensure long-term agricultural
sustainability in vulnerable regions.
Participants learned how to better manage their
resources, such as constructing their own bio-
digesters and utilizing low-cost methods for
water collection and storage. They also gained
valuable insights into profitable markets for
agricultural products and the importance of
reducing practices that harm the environment,
such as deforestation.
Dr. Alice Ruto concluded the session by answering
questions and connecting farmers to local
agricultural extension officers for further guidance.
This follow-up will ensure that participants have
the ongoing support needed to implement what
they’ve learned.
ASA Kenya aims to strengthen
farmers’ ability to adapt to climate
change, protect their livelihoods,
and ensure long-term agricultural
sustainability in vulnerable regions.
Strategic Report
50
ASA International Group plc
Annual Reports and Accounts 2024
Discover more
asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ESG Report
Responsible
practices,
sustainable
growth
This Environmental, Social, and Governance
(‘ESG’) report outlines the Company’s
commitment to responsible business
practices and sustainable growth.
It provides an overview of our
ESG performance, showcasing our
efforts to integrate sustainability
into our operations while creating
long-term value for stakeholders.
51
Discover more
asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
Strategic Report
51
Environmental
Environmental encompasses areas that are
affected by environmental factors, which is
a two-way relationship that involves both the
impact of the Company on the environment
and the impact of the environment on
the Company.
Social
Social denotes the Group’s approach to
managing relationships with colleagues,
clients and communities.
Governance
Governance pertains to the various aspects
that promote good governance practices and
enable the Group to establish itself as a
responsible business.
Read more on page 63 Read more on page 54 Read more on page 84
This Environmental, Social, and Governance
(‘ESG’) report provides an overview of the ESG
performance of the Company, highlighting its
commitment to responsible practices.
Throughout 2024, the Company has achieved progress towards its climate goals and Diversity, Equity, and Inclusion (‘DEI’) targets while setting
new objectives for 2025. Policies and surveys assessing client and employee impact and satisfaction have been thoroughly reviewed, with
ongoing enhancements to improve practices, data quality and insights. The Company has also undertaken numerous initiatives to support
and engage with the communities in which it operates. Additionally, a comprehensive scenario analysis was conducted to assess long-term
implications and potential financial risks of climate change and the Company has started exploring the concept of double materiality to better
understand the broader impact of its operations.
ESG Report (continued)
ASA International Group plc
Annual Reports and Accounts 2024
Discover more
asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
Strategic Report
52
Advancing the SDGs
ESG Report (continued)
Through its responsible business model, the Group actively supports
the sustainable development agenda, working most actively towards
the five Sustainable Development Goals (‘SDGs’) below.
Other UN SDGs supported
Through its community projects and environmental commitments, the Company aims to contribute, albeit
on a smaller scale, to the prevention of hunger, good health and well-being, quality education, clean water
and sanitation, sustainable cities and communities, climate action and partnerships for the goals.
Read more on pages 61 and 62
Target focus areas:
SDG 1: 1.2, 1.4, 1.5
No poverty
The Company is committed to making a
social impact, being a microfinance
institution providing socially responsible
financial services, such as loans, targeted
at predominantly low-income female,
small business owners. The Company is
driven by advancing financial inclusion, by
increasing the number of female low-
income micro-entrepreneurs with little or
no access to formalised credit resources,
increasing self-employment opportunities,
and thereby, alleviating poverty.
Target focus areas:
SDG 5: 5.5, 5.a, 5.b
Gender
As women generally have good loan
repayment behaviour and money
management, the Group is convinced
that by serving primarily women
through business loans, the Group
enhances these women’s independence
and decision-making stature at home
and in their communities. Additionally,
the Company is committed to providing
equal opportunities for employment
and promotion.
Target focus areas:
SDG 8: 8.3, 8.5, 8.10
Decent work and
economic growth
The Company provides socially
responsible employment opportunities
to employees and services to its clients.
The increased earnings of the Group’s
clients are used to expand their
businesses. Many clients buy and sell
goods and the increased trading activity
boosts the local economy.
Target focus areas:
SDG 9: 9.3, 9.4
Industry, innovation
and infrastructure
The Company supports industry,
innovation and infrastructure by
increasing the access of small-scale
enterprises to financial services and
through the establishment of an
extensive branch network and
operations across thirteen countries.
Our move towards also offering digital
financial services further enhances
innovation and scalability.
Target focus areas:
SDG 10: 10.1, 10.2
Reduced inequalities
By offering loans to women, the Group
enables the use of disposable income
for essential household needs, such as
education, health, nutrition, sanitation,
and housing. This supports economic
development and leads to socioeconomic
progress in the communities. Additionally,
0.5% to 1% of operating subsidiaries’
profits fund projects related to health,
education, and relief, benefiting the
communities where our clients reside
and work.
Total loans disbursed (USD)
1,106.7m
Clients served
2.5m
Female clients
97%
Gender diversity employees
38%
Branches
2,145
Taxes (USD)
35.0m
Employees
14.2k
Employee satisfaction rate
75%
Community projects spend (USD)
0.4m
Social Performance Indicator (‘SPI’)
85%
Read more about our Socially responsible business model on pages 11 and 55.
Read about our DEI efforts on page 60
Read about how we support colleagues
on page 57
Read about our digital journey on page 18
Read about our community initiatives
on pages 61 and 62
Strategic Report
53
Discover more
asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
Embedded social
responsibility
In line with ASA International’s purpose, the
social aspect of ESG is engrained in its daily
operations. The Company is committed to
acting responsibly and safeguarding the
interests of its stakeholders while adhering
to human rights. The lending ASA Model
is at the heart of how the Company serves
its clients, community, and colleagues.
Universal Standards
for social performance
Our average scores on the seven dimensions of the
Universal Standards as part of internal SPI assessment.
ESG Report (continued)
Socially
responsible
Social Strategy
Committed Leadership
Client-centred
Products and Services
Client Protection
Responsible Human
Resource Development
Responsible Growth
and Returns
Environmental
Performance Management
87%
92%
91%
94%
92%
96%
95%
96%
63%
77%
92%
91%
77%
85%
2024 2023
Strategic Report
54
Discover more
asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
Prioritising our clients
The Group prioritises the well-being and
empowerment of its clients. Through a
holistic approach, it integrates principles
of client protection and engagement
across its operations.
Fostering financial inclusion
The Group recognises the importance of promoting
financial inclusion as a catalyst for socioeconomic
progress. To ensure its services remain accessible
and affordable, the Group rigorously benchmarks
its loan interest rates against equivalent providers
in its operating subsidiaries, integrating competitive
pricing as a core aspect of the ASA Model. Beyond
affordability, the Group enhances access through
its standardised, transparent lending model, which
includes no collateral requirements, doorstep
service, and group-based lending, without joint
liability. Additionally, the Group continues to
expand and explore digital solutions to further
improve efficiency and accessibility. Its transparent
pricing policies, aligned with market averages,
reflect a commitment to providing value while
safeguarding financial sustainability.
ASA Kenya: Pacesetters
International Award for impacting
lives through Digital Credit by
Jubilant Stewards of Africa (‘JSA’).
ASA Uganda: Recognition for
outstanding focus on advancing
agribusiness finance to smallholder
farmers in underserved regions of
Northern and Eastern Uganda by
aBi Finance Quarterly Stakeholder
Engagement Awards.
Empowering through responsible lending
Empowering clients through responsible lending
is central to the Group’s ethos, embedded within
the ASA Model. Loan officers assess the needs
and capacities of potential clients, evaluating both
repayment capabilities and the potential impact
of loans on their businesses to prevent over-
borrowing. The Group offers fair and transparent
products with clear terms, no hidden fees, and
financial education to help clients make informed
decisions. Additionally, strict data security
measures protect client information, fostering trust
and ensuring long-term financial well-being.
Through this approach, the Group empowers
clients to unlock their full potential for
economic growth.
ASA Ghana: Sustainable
microfinance model and highest
outreach in rural areas from Ghana
Microfinance Institutions Network.
Upholding Client Protection Principles
Transparency and accountability are fundamental
pillars of the Group’s client-centric approach.
It adheres to the Client Protection Principles (‘CPP’)
developed by the SMART Campaign, which
describe the minimum protection that microfinance
clients should expect from their providers, as well
as the protection that an institution should
maintain to serve the best interests of its clients.
As part of its commitment to upholding client
protection, the Group evaluates its adherence to
the CPP through the Client Protection Standards
as a key component of its Social Performance
Indicator assessment. By maintaining the highest
standards of client protection across all aspects
of their business, the Group fosters trust and
confidence in its relationships with clients.
ESG Report (continued)
Cultivating
change through
farming and
finance
In Ngatu Village, Kajiado, Kenya,
51-year-old Lilae Roika has
transformed a four-acre plot
into a thriving farm, growing
maize, beans, potatoes, and
bananas — an uncommon path
in her Maasai community.
Inspired by a childhood friend,
she embraced farming, using its
proceeds to educate her six
children through university.
In 2018, Lilae joined ASA,
taking a KES 20,000 loan to
expand her bead business. By
2020, she moved her shop
closer to home and formed the
Namunyak women’s group, now
80+ members strong, enabling
village women to access capital.
With ASA’s support, Lilae has
grown her farm, investing in
water systems and pesticides.
Challenges persist, from
droughts that decimated her
livestock to baboon invasions
destroying crops. Still, she’s
implementing resilience
strategies, including fodder
storage and water conservation.
As a church leader and mentor,
Lilae finds fulfilment in
empowering women. “Our
society thrives when women
take charge of their finances,”
she says. Through farming and
financial inclusion, she’s
changing lives, starting with
her own.
ESG CASE STUDY
Read more on our website
https://kenya.asa-international.com/
client-stories/lilaes-farming-venture/
Strategic Report
55
Discover more
asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
Prioritising our clients (continued)
Listening and responding to feedback
The Group values the feedback of its clients and is
committed to addressing their concerns promptly
and effectively. Through mechanisms such as the
Client Complaint Resolution Committee (‘CCRC’),
clients have a platform to voice their feedback
and lodge complaints regarding services or staff
behaviour. These open and transparent
communication channels help the Group
continuously improve its practices and better serve
clients’ needs. In 2024, a total of 416 complaints
were received and resolved across the Group.
Complaints were related to operational issues, such
as service delivery, loan denials and loan officer
behaviour. The reported issues were resolved
through policy discussions and clarifications with
clients and educating staff.
Measuring impact and ensuring client
satisfaction
Measuring impact and ensuring client satisfaction
are central to the Group’s mission. True success lies
in the tangible benefits clients gain from its
services. Using tools like the Social Performance
Indicator (‘SPI’) and Client Economic Yield (‘CEY’)
survey, the Group internally assesses its impact on
client well-being and economic empowerment.
Client satisfaction remains high, consistently above
80%, with clients valuing the loan approval process,
loan duration, and the responsiveness and fair
treatment by loan officers. A new data analysis
methodology introduced this year has reduced bias
and provided deeper insights. While this led to a
slight decrease in reported satisfaction figures, it
offers a more accurate view of client experiences.
A detailed dashboard now helps each operating
country identify and address key areas
for improvement.
In Uganda, for instance, client feedback led to
adjustments in the loan ceiling, insurance policies,
guarantor requirements, and complaint
resolution process.
The Group scored 85% overall, with strong
performance in client protection, leadership, HR,
and growth. Environmental performance was the
lowest, mainly due to no green loans, though
training and risk awareness are in place. As this is
a self-assessment, some variation is expected. The
dimensions which have declined are under review.
See the score per dimension on page 54
ESG Report (continued)
Read more on our KPIs on page 22
Client retention rate
80%
2023: 77%
Client satisfaction rate
84%
2023: 90%
Social Performance Indicator (‘SPI’)
85%
2023: 90%
Leading the way:
Client group
leadership training
ESG CASE STUDY
Due to ongoing improvements to the CEY
questionnaire, data quality issues prevented this
year’s disclosure. A revised questionnaire,
addressing client challenges in bookkeeping, is now
being piloted in Kenya alongside targeted training.
If successful, a phased rollout across all entities
may follow.
Read more about how the tools and indicators for protecting
clients are calculated on pages 205 and 206 and see the impact
of the loans on clients in our outcome indicators on page 7
Read more about the Group’s policies and practices to protect
clients on pages 82 and 83
In celebration of Independence Day, 170 client
group leaders from across the Philippines
gathered for an inspiring face-to-face training
programme themed “Landas SA Pag-unlad”,
translating to “Pathway to Progress.” This
training, designed to share insights and enhance
leadership skills, marked the beginning of a
nationwide rollout across all 400 branches,
reaching 37,000 (>50%) group leaders and loyal
clients. During these gatherings personal
success stories that reflect the impact of
financial inclusion are shared. One such story is
that of Ms. Lorna Lobo, a loyal client for 15
years. Through ASA International’s support, her
small sari-sari grocery store has expanded more
than tenfold, enabling her to provide for her
children’s education. She attributes her success
to the programme’s client-friendly loan structure
and accessible weekly payments. Group leaders
play a vital role in the ASA Model, not only
motivating their groups but also transferring
valuable knowledge and best practices, creating
a ripple effect of empowerment and progress.
Strategic Report
56
Discover more
asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
Supporting our
colleagues
The Group is committed to fostering a
supportive and inclusive workplace
environment where colleagues can thrive
and grow professionally. Through various
initiatives and policies, the Group
endeavours to recruit, develop, and retain
talent while ensuring motivation, well-
being and safety of all employees.
Recruiting young talent
The Group focuses on recruiting young graduates,
often from rural or semi-urban backgrounds, who
are passionate about working with low-income
communities. Despite economic and political
challenges in some regions, the Group successfully
onboarded 5,085 new team members, of which
42% were female, across its operating subsidiaries
in 2024. This recruitment strategy ensures the
Group continues to bring fresh perspectives and
energy to its mission of financial inclusion.
Training and development
To nurture this talent, the Group emphasises
on-the-job training, supplemented by a
comprehensive 12-day Pre-Service Orientation
(‘PSO’) programme. During PSO, new colleagues
are introduced to the Company’s heritage, mission,
core values, Code of Conduct, HR policies, loan
appraisal process, client selection, and financial
procedures, among other essential topics. In 2024,
7,718 employees underwent PSO, equipping them
with the foundational knowledge and skills needed
to excel in their roles.
Training continues to play a pivotal role as
employees advance into senior positions, covering
a wide range of areas such as anti-money
laundering, diversity and inclusion, skill
development, crisis management, cybersecurity,
digitalisation, and role-specific training. In 2024,
the Group recorded a total of 14,821 training
attendees and 77,350 hours of training,
underscoring its commitment to continuous
learning and development.
ASA Tanzania/Zanzibar:
Contribution to Human Resources
practice from the Higher
Education Loan Board of the
Government of Tanzania.
Encouraging growth and advancement
Promotion opportunities are offered to employees
who demonstrate strong leadership qualities and
embody the Company’s values and core principles
of the ASA Model. With a staff retention rate of
75%, retention is slightly improving. In some
countries, turnover is already low, while in others
it remains a focus area, with efforts aimed at
supporting long-term careers and advancement
within the Company. In 2024, 1788 promotions
were recorded, with a notable percentage of loan
officers advancing to assistant branch managers.
32% of the total promotions were awarded to
female employees.
Read more about employee development and value
embodiment on page 19
ESG Report (continued)
In Q3, the Company held a Performance
Recognition Event in Rwanda to celebrate
outstanding achievements and reinforce a
culture of professionalism and excellence. The
initiative aimed to boost motivation, strengthen
team morale, and inspire employees to strive
for high performance.
A top-performing branch manager and loan
officer were recognised based on key
performance metrics, including customer
growth, loan portfolio expansion, deposit
mobilisation, and loan recovery. The selected
employees were invited to the Head Office,
where they received certificates of recognition
from the CEO in the presence of staff.
The event fostered a sense of pride and healthy
competition among employees. Several
employees mentioned feeling inspired to
improve their own performance and contribute
more to the team’s success.
By recognising excellence, the Company is also
creating a more engaged work environment.
Encouraged by its success, performance
recognition will continue quarterly as a core
part of employee engagement and motivation.
ESG CASE STUDY
A new data analysis methodology introduced this
year has reduced bias and provided deeper insights.
While this led to a slight decrease in reported
satisfaction figures, it offers a more accurate view
of employee experiences. A detailed dashboard
now helps each operating country identify and
address key areas for improvement.
Prioritising employee satisfaction and
well-being
Supporting colleague satisfaction and well-being is
key to a positive work environment. The Group’s
annual employee satisfaction survey reports a 75%
satisfaction rate, with most employees feeling
valued, treated fairly, and connected to the
Company’s mission. However, feedback highlights
areas for improvement, particularly in staff
accommodation, benefits, work-life balance,
and stress management, which remain priorities.
Fostering excellence:
Q3 Performance
Recognition Event
in Rwanda
Strategic Report
57
Discover more
asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
Implementing robust mechanisms for
addressing employee concerns
The Group has implemented robust mechanisms
to address employee concerns and maintain a
constructive work environment. Employees are
encouraged to report any actions that may violate
laws, regulations, or Company policies through a
whistleblowing system. In 2024, four
whistleblowing incidents were reported across the
Group. Investigations were completed and
submitted to the Whistleblowing Officer, with a
decision by the disciplinary committee following.
To further strengthen the whistleblowing
framework, the policy and training materials are
currently undergoing revision.
To further enhance transparency and
accountability, the Grievance Mitigation Committee
(‘GMC’) addresses appeals and complaints related
to workplace issues. In 2024, the GMC received a
total of 22 appeals and ten direct complaints.
Investigations into these cases led to corrective
actions such as warnings, fund recoveries,
transfers, summary dismissals, and termination of
contracts. Preventative measures include ongoing
training sessions and awareness programmes to
ensure employees feel supported and valued.
Read more about how whistleblowing is overseen on page 102
ESG Report (continued)
Ensuring employee health and safety
The Group continues to prioritise the
implementation of strict protocols to ensure the
health and safety of its employees. These protocols
include the regular monitoring and control of health
and safety risks, the provision of safety and
awareness training and the enforcement of
preventive measures. In addition, a three-tiered
accident and incident monitoring system is in place,
as well as the integration of health and safety
committees and occupational health checklists in
each operating subsidiary, ensuring comprehensive
supervision and monitoring throughout the Group.
In response to workplace incidents or illnesses, the
Group quickly implements emergency measures or
corrective actions. It is worth noting that 222
accidents and two fatalities (health issues) were
recorded during the year. In response to the
number of accidents increasing, the Group has
proactively engaged countries with high accident
rates to improve safety measures. Despite robust
safety measures, including traffic rule enforcement,
license requirements, helmet use, vehicle
maintenance, and awareness campaigns, 82% of
accidents involved motorcycles.
Read more about health risks on page 46
Employee satisfaction rate
75%
2023: 81%
Staff retention rate
75%
2023: 74%
Gender diversity
38%
2023: 37%
Training hours
77,350
2023: 67,107
Read more on our KPIs on page 22
Supporting our colleagues (continued)
Strategic Report
58
Discover more
asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
Strategic Report
58
Supporting our colleagues (continued)
Cultivating inclusive corporate culture
We foster a dynamic corporate culture built on our values of integrity, professionalism and teamwork.
ESG Report (continued)
Celebrating culture and unity:
ASA Uganda’s Independence Day
To honour Uganda’s rich heritage and
promote national pride, ASA Microfinance
Uganda Ltd celebrated the country’s 62nd
Independence Day by encouraging staff to
wear cultural attire. This initiative
highlighted the importance of diversity in
fostering unity and strengthening Company
culture.
Employees embraced the celebration,
appreciating the opportunity to showcase
their cultural backgrounds. The event
fostered a sense of belonging, boosted
morale, and strengthened team cohesion by
encouraging collaboration and mutual
understanding.
Beyond Independence Day, ASA Uganda
continues to cultivate a dynamic and
inclusive Company culture through
initiatives that celebrate diversity and
promote employee engagement. Events like
“Back to School”, where staff wear school
uniforms, further reinforce a positive work
environment. By integrating cultural
appreciation into the workplace, ASA
Uganda nurtures an engaged, motivated,
and unified workforce that thrives on shared
values and respect for diversity.
ESG CASE STUDY
Core values driving our culture
Committees upholding sustainable growth, inclusion, and accountability
Monitoring progress and ensuring transparency
Professionalism
We uphold responsible, reliable, and accountable
leadership, ensuring operational efficiency,
role ownership, and a commitment to
continuous learning.
Executive
Committee
Provides strategic leadership
and decision-making to drive
business growth, operational
excellence, and alignment
with organisational goals.
Staff and client
satisfaction
surveys
Diversity, Equity, and
Inclusion (‘DEI’) Committee
Promotes a diverse, inclusive,
and equitable workplace by
fostering policies and
initiatives that support equal
opportunities and
representation.
Diversity
and inclusion
metrics
Sustainability
Committee
Oversees the integration
of ESG principles into
business strategy and
operations, ensuring
long-term sustainability
and responsible growth.
Stakeholder
feedback
Grievance
Mitigation Committee
Facilitates a structured
process for addressing
employee concerns, ensuring
a fair and transparent
resolution mechanism
to maintain a positive
work environment.
Grievances
received
Client Complaint
Resolution Committee
Ensures prompt and fair
resolution of client concerns,
enhancing service quality
and reinforcing customer
trust and satisfaction.
Health
and safety data
Regular
reporting to
ExCo and Board
Internal and
External Audits
Integrity
We maintain consistency, trust, transparency,
respect, and equality, adhering to high ethical
standards while fostering fairness in
all interactions.
Teamwork
We cultivate a collaborative and supportive
environment that encourages knowledge sharing
and empowers team members to achieve
common goals.
Read more Read more Read moreRead more Read moreRead more Read more
Strategic Report
59
ASA International Group plc
Annual Reports and Accounts 2024
Discover more
asa-international.com
Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
Promoting diversity and inclusion
As a global company active in 15 countries, the
Group celebrates its culturally diverse workforce. In
terms of gender, in 2024, the operating subsidiaries
represent 37.6% of the Group’s overall female
representation, broken down into East Africa:
14.6%, West Africa: 9.5%, East Asia: 9.7% and South
Asia: 3.9%. Due to cultural reasons in South Asia and
safety issues related to travelling alone, hiring
women continues to be a challenge in this region,
which impacts the Group’s overall gender
representation. Female representation at the senior
leadership level at subsidiary level is 28.6%. In terms
of age, 45% of the Company’s employees are under
30 years old and 1% over 50.
Efforts to improve gender representation include
the formation of a Diversity, Equity, and Inclusion
(‘DEI’) Committee, the approval of a DEI policy, and
the establishment of goals and targets to improve
gender representation at various organisational
levels across all entities. Improving female
representation is a key priority for us, aligned with
our mission and commitment to female
empowerment and creating inclusive opportunities
for women. Progress on these targets is regularly
evaluated through progress reports and biannual
meetings with the DEI Committee and the CEOs of
the operating subsidiaries. These meetings not only
assess progress but also focus on addressing the
challenges when targets are not met. These goals
have led to significant achievements, including DEI
training for over 1,000 leadership members, female
representation in Committees and interview panels
across nearly all countries, and bias-free training for
more than 3,750 colleagues, reinforcing the Group’s
commitment to fostering an inclusive workplace
where all employees feel valued and respected.
ASA India: Nominated for
Elaben Memorial Award for best
women-friendly microfinance
institution by Sa-Dahn.
ESG Report (continued)
ESG CASE STUDY
ASA Tanzania breaking
bias and empowering
change through training
To tackle the challenges of bias in decision-
making, leadership, customer service, and
culture, 844 employees engaged in the
Bias-Free Training programme in 2024, bringing
the total number of participants to 1,070.
This comprehensive training, delivered through
interactive workshops and e-learning, focused
on addressing unconscious biases and promoting
inclusive leadership and service.
The programme has already driven significant
changes in both behaviour and policy, enhancing
leadership practices, improving customer
interactions, and fostering gender inclusion.
With continued support and ongoing initiatives,
we remain committed to building a more
inclusive and diverse workplace culture.
Programme participants
844
Number of Board Directors
1
52
Number of senior employees
2
, other than Board Directors
3
20783
Number of Independent Directors of subsidiaries
4
1415
Number of employees, other than Board Directors and senior
employees
8,6465,296
F e m a l e
Male
Read the diversity listing rule disclosure on pages 107 and 108
1 Includes Non-Executive Directors, excluded from Group
headcount calculations. Figures as at 31 December 2024.
2 Senior employees identified as material risk-takers who are
not Directors or subsidiary Directors.
3 Includes subsidiary Directors who are excluded from Group
headcount calculations.
4 Not including Directors appointed on the Board of the plc.
Supporting our colleagues (continued)
Strategic Report
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02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
The branches of the operating
subsidiaries, being an integral part of
the communities in which they operate,
undertake social impact initiatives to fulfil
their commitment to social welfare.
The initiative of these projects predominantly lies
with the field staff at the branch level, as they
maintain regular contact with clients and the
community and understand their needs. To fund
these activities, the Company’s subsidiaries allocate
a percentage of their profits, typically between
0.5% and 1%, except in countries such as India,
where regulations stipulate a higher percentage of
2%. The projects are highly regarded by colleagues,
clients and the wider community, and focus on
improving health, education, environment or
providing disaster relief.
ESG Report (continued)
Education
Receiving quality education is a key
factor in advancing socioeconomic
progress and escaping poverty,
since higher levels of education are
associated with increased financial
independence and greater ability to
create wealth and participation in
the economy. Therefore, various
projects have been initiated which
encourage learning and
development, such as student
bursaries, distributing educational
materials and necessities to schools
and a tutoring programme called
ASA Pathsala.
Impact indicators 2024
• Over 5,500 attendees of
ASA Pathsala classes.
• 382 students received a
bursary or scholarship fund,
amounting to almost USD 25k.
• USD 145k spent on donations
to schools directly reaching
23,000 children.
Empowering education in Ghana
Education transforms lives, but
financial barriers often limit access.
To bridge this gap, the Student
Bursary Programme was launched
in Ghana, supporting students from
families in need. Since 2022, it has
benefited 369 students across
primary, secondary, and tertiary
levels. In 2024, 170 children of
active loan clients received GHS
1,000 each, easing educational
costs and reducing dropout rates.
With plans to support 375 students
in 2025, the programme continues
to grow, ensuring brighter futures
through education.
ASA Ghana: CSR Excellence Award
by Centre for CSR
Engaging our
communities
Health
Contributing to the health and
well-being of the community,
especially to that of the most
vulnerable, is a vital aspect of
improving their lives. The Company
conducts many different projects in
this field, such as wheelchair
distributions, health camps and
medical screenings in collaboration
with reputable health organisations.
To reduce waterborne diseases, the
installation of water filters, tanks,
treatment plants and boreholes at
schools or in the communities
are organised.
Impact indicators 2024
• 2,813 people with disabilities
supported.
• 1,500 individuals benefited
from borehole installations.
• 53 health camps conducted
reaching approximately
7,901 people.
• Over USD 34k spent on
health-related donations to
individuals and hospitals.
Improving accessibility
in Tanzania
In Tanzania, we provided essential
building materials, such as cement,
blocks, and sand, to support the
construction of accessible homes
and schools for people with
disabilities. The design includes
ramps with handrails, wide
corridors for wheelchairs, and
enhanced lighting and colour for
those with low vision. In 2024, 25
individuals benefited, bringing the
total to 150 people supported
since its inception. The project will
continue to expand, with the
school still under construction,
ensuring greater accessibility
and opportunities for students
with disabilities.
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02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
ESG Report (continued)
Engaging our communities (continued)
Environment
The Company is dedicated to
cultivating resilient communities,
promoting environmental
stewardship, and building
sustainable environments for
future generations. In alignment
with its environmental
sustainability initiatives, the
Company spearheads tree planting
projects and recycling initiatives.
These collaborative efforts involve
clients, colleagues, communities,
local governments, forestry
commissions, and schools.
Together, they combat carbon
emissions, rejuvenate
surroundings, and fortify
environmental resilience against
natural challenges.
Impact indicators 2024
• 27,700 trees planted.
• Four solar systems installed in
communities.
Read more about Kenya’s climate smart
agriculture training on page 49 and solar
panel installations in Nigeria on page 78
Disaster relief
Efforts are diligently undertaken
to promptly respond to emergency
situations, ensuring the safety and
well-being of our clients during
times of distress through robust
capacity-building initiatives. This
entails equipping individuals with
essential resources to enhance
their resilience in the face of
adversity. In the event of natural
disasters, our support
encompasses the provision of vital
necessities, including food, shelter,
and medicine. Our commitment to
relief extends beyond immediate
emergencies, addressing
foundational needs, such as food
security and access to
adequate housing.
Impact indicators 2024
• Over 20,000 natural disaster
relief programme participants.
Powering communities
in Pakistan
In 2024, ASA-MFB installed solar
energy systems in two
government Girls’ High Schools,
addressing frequent power
outages that previously disrupted
learning for hours. By ensuring
uninterrupted electricity, the
initiative has extended study
hours, improved the educational
environment, and reduced
operational costs. Focused on
schools in low-income areas, it
also promotes sustainability by
replacing diesel generators with
clean energy, lowering carbon
emissions. With positive feedback
from students and staff, ASA-MFB
plans to install solar systems in six
more schools this year.
Flood relief in Myanmar
In 2024, ASA Myanmar provided
urgent relief to 569 clients across
eight branches affected by
Typhoon Yagi in Bago division.
Families facing severe food and
medicine shortages received
essential supplies, including rice,
noodles, onions, salt, and medical
aid. ASA Myanmar’s swift
response helped stabilise
communities, ensuring immediate
food security and easing the
burden of recovery. With over five
years of disaster relief experience,
the organisation remains
committed to supporting
vulnerable clients in rebuilding
their lives after crises.
2024 performance
USD spent
439k
Programme participants
151k
Initiatives
861
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04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
Environmental
responsibility
and resilience
ESG Report (continued)
Operating in an environmentally
responsible manner requires the Group
to consider both its impact on the
environment and the environment’s
impact on the Company. This dual
perspective is crucial, particularly
considering the urgent need to address
climate change.
Strategic Report
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01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
Mitigation of emissions
The Group is actively working to reduce
its environmental impact as part of its
sustainability commitment. By identifying
key areas, they have implemented
targeted short-term measures to lower
carbon emissions, improve energy
efficiency, and conserve vital resources.
Read more about the Company’s emissions on page 81
and its climate targets on page 78
Guided by ESMS and environmental policy
Guided by its Environmental and Social
Management System (‘ESMS’) and environmental
policy, the Group is committed to responsible
environmental stewardship. These frameworks
outline clear policies and procedures to minimise
negative impacts and promote sustainable
practices across its operations.
Responsible investment practices
Through its exclusion list, the Group upholds
rigorous standards for responsible investment.
By refraining from financing activities that could
harm biodiversity or the environment, the Group
ensures that its business practices align with its
environmental values and adhere to
international conventions.
Promoting sustainable travel
The Company actively promotes responsible
and sustainable travel practices, particularly
emphasising eco-conscious decisions in air travel,
as outlined in its travel policy effective December
2022. While acknowledging the importance of
visiting operations and engaging with clients and
colleagues in person, the Company remains
committed to minimising its environmental impact.
Through these efforts, the Company aims to align
its travel decisions with its sustainability goals.
Measuring greenhouse gas (‘GHG’) emissions
The Company adheres to the Streamlined Energy
and Carbon Reporting (‘SECR’) standard. This
initiative enables the Company to disclose its
energy and carbon data, facilitating the monitoring
of emissions and energy efficiency efforts over
time. Through SECR, the Company ensures
transparent and consistent reporting of its
environmental impact, thereby identifying
opportunities for further improvements in
sustainability performance.
Read the SECR report on pages 80 and 81
The Group recognises that climate change
poses a risk to its operations and
acknowledges the need to address this
risk. To ensure transparency and
accountability, the Company is committed
to aligning with the Task Force on
Climate-related Financial Disclosures
(‘TCFD’) framework, enabling disclosure to
investors and stakeholders regarding its
strategies to manage climate-related risks
and opportunities.
Read the report on pages 65 to 79
Assessing climate risks
In 2024, the Company conducted two key
assessments. First, a scenario analysis was carried
out to assess both transitional and physical risks
related to climate change. This included evaluating
the potential impact of natural disasters such as
floods and earthquakes on its resources and overall
operations. The second assessment, the Natural
Calamity Impact Assessment (‘NCIA’), offers further
insights into the Company’s susceptibility to natural
disasters. Six operating subsidiaries were impacted
by natural calamities this year, affecting both
operations and finances. The Philippines faced
frequent typhoons, disrupting field activities and
increasing Portfolio at Risk (‘PAR’), while Zambia’s
severe drought impacted agriculture and
hydroelectric power generation. These
assessments help the Company identify adaptation
needs, mitigate risks, and enhance resilience.
Read the scenario analysis on page 69 and read more about
disaster response on page 62
ESG Report (continued)
Emergency preparedness and response
The Emergency Preparedness and Response Plan
(‘EPRP’) is crucial for the Company’s adaptation
efforts, particularly in the face of increasing natural
disasters. Its objective is to protect resources,
clients, and staff, ensuring the integrity of critical
information and sustaining essential operations and
services. The plan outlines strategies and
procedures for emergency management and
response. With the EPRP in place, the Company
can effectively prepare for and mitigate the impacts
of emergency situations, enhancing resilience in
times of adversity.
Read more about the environmental policies and practices on
page 82
Carbon footprint
7,489
Tonnes of CO2
Adaptation to climate change
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02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
Strategic Report
64
Task Force on
Climate-related
Financial Disclosures
(‘TCFD’)
As required by the Financial Conduct Authority
(‘FCA’) Listing Rules, ASA International aligns with
the TCFD on a comply or explain basis to provide
transparent data to investors and other
stakeholders about the material risks and
opportunities of climate change for the Company.
Disclosures are made consistent with the FCA’s
Listing Rule 9.8.6R(8) and the TCFD
recommendations and disclosures. This is the
fourth year the Group is implementing and
reporting on the recommendations of the TCFD
and we are continuing to mature our approach. In
this report, the Group shares the key developments
and the status of the four core elements of the
TCFD recommendations.
Key activities in 2024
Governance
Continued Board oversight
Read more on page 66
Strategy
Conducted scenario analysis
Read more on page 67
Risk management
Climate risk considered quarterly
Read more on page 67
Metrics and targets
Met targets for 2024 and set targets
for 2025
Read more on page 78
ESG Report (continued)
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02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
Role of senior management
• Senior management plays an important role in
assessing and managing the Company’s CRROs.
This involves cross-functional management at
both the Group and subsidiary level.
• All ExCo members with the exception of the
Head of Internal Audit are part of the
Sustainability Committee.
• The Sustainability Working Group, which
includes leadership team members across
various functions such as risk, finance, legal and
sustainability, supports the SC by providing
regular updates on the Company’s sustainability
strategy. In 2024, two meetings were held with
the SC and subsidiary Managing Directors to (i)
present progress on climate targets for 2024
and (ii) present climate targets plans for 2025.
Bi-annual progress meetings are scheduled
going forward.
Sustainability Committee
Discusses progress and performance on
climate-related topics and decision making
bi-annually.
Sustainability Working Group
Assesses and cross-functionally manages the
CRROs. Proposes and implements climate-related
strategic decisions to drive improvement. Reports
to the SC.
Subsidiary Managing Directors
Responsible for the climate action plan and the
achievement of climate targets at subsidiary level.
Presents to the SC bi-annually on progress.
Sustainability and risk managers
Assesses the CRROs on the ground and manages
the implementation of the climate targets. Reports
to the subsidiary Managing Director and to the
Group sustainability manager on a quarterly basis.
ESG Report (continued)
Sustainability reporting structure
4
3
2
1
• Senior management receives regular progress
reports towards meeting the Company’s climate
targets, allowing it to make informed decisions
and to ensure that the Company’s operations
and initiatives are aligned with the targets.
• The SC has an approved the Terms of
Reference (‘ToR’).
Board oversight
• Board oversight of and engagement with the
Company’s sustainability efforts is a key priority
and is ensured through the active involvement
of the Chief Executive Officer in the
Sustainability Committee (‘SC’).
• Two SC meetings were held to discuss progress
and performance on Climate-related Risks and
Opportunities (‘CRROs’) in 2024.
• The Board has considered CRROs by reviewing
the climate risk as part of the principal risks
in the Company’s risk taxonomy and
risk framework.
• Progress on sustainability efforts is reported
to the Board in quarterly Board meetings.
• All subsidiaries have committed to Board
oversight of their climate targets.
Governance
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04 Growth with purpose
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07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
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Additional information
Strategic Report
ASA International Group plc
Annual Reports and Accounts 2024
66
Strategy and risk
management
The Group has implemented measures to
identify climate-related risks, assess their
impact, and incorporate them into financial
planning. These risks are embedded within
the Group’s risk management framework
and are actively monitored.
Identifying risks
• The Group uses a TCFD subscribed framework
to classify climate risk and has implemented
standardised templates for identifying and
assessing climate risks across all its subsidiaries.
• Each subsidiary has a risk management unit
and sustainability manager responsible for
identifying climate risks using the standardised
template.
• Climate risks are assessed internally using a risk
scoring method based on both likelihood and
impact, as defined in the Group’s risk
management framework. Data related to
operational and financial damage (assessing
materiality) caused by natural calamities is also
collected as part of the assessment process.
See the Natural Calamity Impact Assessment
on page 64.
• The above-mentioned reports are reviewed by
the local risk management coordination
committee and approved by the Country Head
before being submitted to the Group.
• The Group climate risk management report is
prepared on the basis of the country reports
and presented to the Audit and Risk Committee
(‘ARC’) quarterly. Climate-related risks are
identified, assessed and reported quarterly.
• The Group has identified short-term, medium-
and long-term climate risks. Long-term scenario
planning was conducted in 2024, with a
strategic view towards 2050.
• Climate risk is identified and included as a
distinct principal risk as part of the broader risk
framework due to the prevalence of natural
disasters in operational countries, with potential
further escalation due to climate change.
Enhanced monitoring is necessary for both
physical and transition aspects of climate risk.
This risk intersects with other principal risks:
adverse climate events can impact client
payment capacity, affecting credit risk; emission
control failures can impact reputation risk; and
non-compliance with emerging environmental
regulations can affect local regulation risk.
Read more about risk management on pages 38 and 39
Managing CRROs
The Company’s current focus is on risk management
of physical and transition risks, as climate-related
opportunities such as resource efficiency are being
explored as part of the emissions mitigation efforts.
Managing physical risks
• Natural calamities such as floods, cyclones,
droughts, earthquakes, volcanic eruptions, etc.
are common in some of the countries where the
Group operates.
• Risk management protocols are built into the
Group’s operational procedures, including site
selection of potential new branches, taking into
account the vulnerability to natural calamities.
• Natural disaster management procedures are in
place at the entity level, including staff training
for emergency response plans, postponement of
disbursement and collection until the situation
stabilises, and loan repayment rescheduling or
moratoriums for borrowers in extreme cases.
Assistance/relief is offered to borrowers under
community projects. Read more on page 62.
ESG Report (continued)
Managing transition risks
• The Group proactively monitors and addresses
regulatory or stakeholder requirements related
to greenhouse gas (‘GHG’) emissions in its
operational countries. So far, the operational
countries are not facing any strict regulatory or
stakeholder requirements in this field.
• The Group is committed to reducing its carbon
emissions across all subsidiaries to be an
environmentally sustainable organisation and
uphold its reputation.
• The Group has approved SMART (‘Specific,
Measurable, Achievable, Realistic and Time-
bound’) targets for all its subsidiaries, including
initiatives for reducing emission’s such as solar
panel installation, use of E-bikes, use of LED
lights and tree plantation.
• A travel policy has been adopted to ensure air
travel is limited as much as possible to reduce
the Group’s carbon footprint.
Read more about targets on page 78
Integrating climate risks into overall risk
management
To include climate-related risks into overall risk
management, the following steps have been taken:
• Risk taxonomy includes climate risk as a
separate risk category.
• The risk management framework has a separate
section for climate risk management.
• A standard template is implemented in all
subsidiaries for identifying, assessing and
reporting on climate risks on a quarterly basis.
• The climate risk report is included in the risk
reporting pack presented to the ARC on a
quarterly basis.
Impact of CRROs on the organisation’s
businesses, strategy and financial planning
• Climate change is a part of the Group’s approach
to sustainability approved by the Board in 2021.
• Major sources of the Group’s emissions within
Scope 1, 2 and 3 have been identified. A
feasibility study was completed in 2022 to
determine the opportunities to mitigate these
major sources of emissions. Feasibility indicators
assessed included market, economic,
operational, scheduling and target feasibility.
• With guidance of the Group, based on the
outcomes of the feasibility study, concrete
mitigation proposals have been defined and
approved at entity level for 2023, 2024 and
2025. The consolidated targets at Group level
can be found on page 78.
• The impact on financial reporting judgements
and estimates are presented in note 2.5.1 on
page 154.
• Directors have concluded that currently the
impact of the risks in the Group’s financial
statement is not material. Certain additional
investments planned to reduce the carbon
footprint of the Group – amounting to
approximately USD 600 thousand – have been
considered in the financial plans.
Strategic Report
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04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
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Corporate governance report
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Additional information
Strategic Report
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ESG Report (continued)
Strategy and risk management (continued)
Climate risk Risk description Risk level
Financial
impact Time horizon Comment
Transition risk
Credit risk
Risk of failing to comply with
regulatory requirement related to
carbon footprint/GHG emissions.
Low
None ST, MT Risk grade is low as none of the subsidiaries have stringent regulatory requirements from the local
governments/central banks related to carbon footprint/GHG emissions at present.
However, at Group level the SECR UK standard is followed for reporting carbon footprint. Also, the Group
needs to follow TCFD requirements for assessing climate risks.
Technological
Risk associated with transitioning
to lower emission technology.
Low
Not material ST, MT Risk grade is low as the Group’s plan to lower the emissions does not involve complex and expensive
technologies.
The focus remains on increasing the use of renewable energy, increasing energy efficiency, reducing fuel
consumption and using environmentally friendly vehicles. This may present opportunities, such as reduced
operating costs through efficiency gains and less exposure to fossil fuel price increases.
Market
Risk associated with changes to the
market resulting from climate
change, such as changing customer
behaviour and an uncertain market.
Low
None ST, MT Risk grade is low as the Company’s clients are micro-entrepreneurs who deal with essential goods
and services. It is highly unlikely to see any change in customer behaviour related to transitioning to a
low-carbon economy.
Reputational
Risk associated with not being able
to meet stakeholder concerns in
terms of sustainability and
carbon emissions.
Low
None ST, MT The Group has approved SMART targets for all its subsidiaries, including initiatives for reducing emissions
such as through solar panel installation, use of E-bikes, use of LED lights and tree planting.
Subsidiaries have met their targets for 2024.
Physical risk
Acute risk
Risk associated with extreme
weather events such as flooding,
cyclone, heat waves, etc.
Medium
Not material ST, MT The Philippines has experienced an increased frequency of typhoons, which have severely affected our field
operations. Consequently, the PAR in the Philippines has risen due to these calamities.
Zambia has experienced a severe drought this year, which has impacted the agriculture sector and has
reduced the hydroelectric power generation of the country.
Chronic risk
Risk associated with a long-term
shift in climate pattern, such as
rising mean temperatures and
rising sea level.
Low
Not material ST, MT The risk is perceived to be low at present, although natural calamities like droughts and floods are expected
to increase over the long term.
As the Group’s branches are low cost and are on short term rental agreements (2-3 years), there is an option
to relocate from areas prone to natural disasters.
Long-term scenario planning has been completed in 2024, where further details and forecast on this risk
can be found.
Risk levels and financial impact for the long term (LT) have been assessed in the scenario analysis report.
Time horizon key
ST – Short term (<5 years) MT – Medium term (5-10 years)
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04 Growth with purpose
06 Chair’s statement
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08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
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24 Group financial performance
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38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
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Additional information
ESG Report (continued)
Scenario analysis
summary
Climate change is anticipated to have far-reaching
systemic effects, impacting governments,
businesses, and households across all geographies
and sectors. Scenario analysis is a valuable tool for
understanding the potential impacts of climate
risks across a range of possible pathways. To assess
our exposure, we conducted a scenario analysis,
performing a high-level assessment of short-term
risks by our risk department while conducting an
in-depth evaluation of physical and transitional
risks over the long term with interdepartmental
engagement. The analysis strengthened our ability
to anticipate challenges, plan for mitigation and
integrate climate resilience into our strategic
planning. The findings indicate that climate change
presents a low to medium level of risk to
our organisation.
Climate scenarios
For this scenario analysis, we selected two
Network for Greening the Financial System
(‘NGFS’) scenarios to evaluate transition and
physical risks under different climate futures.
From the NGFS scenarios, we opted for one
scenario representing an orderly transition
pathway, characterised by higher transitional risks
due to accelerated policy and market changes.
Additionally, we chose a “hot house world”
scenario, which emphasises heightened physical
risks driven by severe climate impacts, paired with
comparatively lower transitional risks. This
dual-scenario approach allows for a balanced
evaluation of both transition and physical risks
under varying climate futures.
Time horizon
We conduct annual climate risk analysis, and this
year, for the first time, we performed a long-term
scenario analysis. We selected 2050 as our time
horizon aligning with TCFD guidance, where it is
categorised as long-term, and UK government
TCFD-aligned disclosure guidance, which defines it
as mid-century. We have not yet conducted a
medium-term analysis, as our initial assessment
indicated strong similarities between medium- and
short-term risks, reinforcing our focus on long-term
projections for now.
Geographic and sectoral focus
We have selected Pakistan, the Philippines,
Tanzania, Ghana, and Kenya for long-term scenario
planning due to their strategic significance within
the Group’s portfolio and their vulnerability to
climate change. As of August 2024, these five
countries collectively account for approximately
81% of the Group’s total portfolio, making them the
largest contributors in terms of portfolio size. Their
inclusion also ensures a balanced geographical
distribution across our operations in Asia and
Africa, providing a diversified perspective on
climate-related risks and opportunities.
We offer a diverse range of loans catering to
various sectors, though the majority of our clients
are primarily engaged in trading, agricultural and
service sectors. For this scenario analysis, we
assessed borrower distribution and principal
outstanding across all sectors. Subsequently, we
focused on these three sectors – excluding the
others – as they collectively represent 90.7% of
our total client base.
Analysis scope
Our scenario analysis focused on understanding
the impact of climate change on ASAI’s operational
elements, while also considering key components
of our value chain and financial assets that are
closely interlinked with our operations.
Operation
The boundary of our analysis primarily included
Our Own Operations, which refer to the internal
processes and activities directly managed within
our offices and branches. This encompasses critical
areas such as client services, loan management,
employee and client health, safety, and well-being,
as well as maintaining ethical business practices
within our operation.
Assets
We prioritised financial assets, evaluating their
exposure to both physical and transition risks,
including extreme weather and regulatory shifts.
Fixed assets were deemed not material, as most
infrastructures are leased and can be relocated.
Value chain
Our downstream analysis centred on clients,
particularly those in low-income communities
vulnerable to climate-related disruptions. Climate
risks affect livelihoods, loan repayment capacity,
and economic stability, making this a critical
focus area.
NGFS
climate
scenario
SSP1
alignment
RCP2
alignment Scenario description Assumptions
Estimated
warming
Time
period Transition risks Physical risks
Below
2°C.
SSP2-2.6 RCP2.6 Orderly transition:
Global efforts limit
warming to well
below 2°C.
Stringent climate policies,
robust carbon pricing,
significant technological
advancements, rapid
transition to renewables.
~1.5-2°C 2050 Increased regulatory and
compliance risks due to
stricter climate policies.
Lower acute and
chronic risks due
to effective climate
mitigation.
Current
policies
SSP2-4.5 RCP4.5 Current policies:
Impact of current
policies with moderate
climate action.
Inconsistent carbon pricing,
gradual adoption of green
technologies, existing
policy frameworks.
~2.5-3°C 2050 Reduced regulatory and
compliance risks with
gradual policy changes.
Moderate acute risks,
some chronic changes
in climate patterns.
1 NGFS to SSP: NGFS climate scenarios generally use SSP2 socioeconomic assumptions, providing a standard basis for comparison. SSP1-2.6 is aligned with more aggressive climate targets, while SSP2-4.5 reflects
a more moderate pathway.
2 NGFS to RCP: The alignment with RCPs reflects general temperature pathways. Specific details of temperature rise and implications can vary slightly due to different assumptions within RCPs.
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06 Chair’s statement
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10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
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Additional information
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ESG Report (continued)
Scenario analysis summary (continued)
Methodology
For identification of the physical and transitional
risk, and the likelihood of the risk, we obtained
information from multiple public credible sources.
For the analysis we sought guidance from the TCFD
Final Report Recommendations of the Task Force
on Climate-related Financial Disclosures, TCFD-
aligned disclosure Application guidance published
by the UK government and Technical Supplement
of The Use of Scenario Analysis in Disclosure of
Climate-related Risks and Opportunities. In
alignment with our risk management framework,
we analysed the risks based on the likelihood and
consequences of each identified risk and decided
which risk factors will potentially have the greatest
effect and should, therefore, receive priority
concerning how they will be managed. The level of
risk is analysed by multiplying estimates of
likelihood and consequences. The risk rating is
categorised as Low Risk for scores between 1 and
6, Moderate Risk for scores between 7 and 12, and
High Risk for scores between 13 and 25. We
applied the scenario analysis across ten material
physical risks and 11 material transition risks. Upon
collecting the data and assessing risk as per our risk
rating framework, we validated findings through
the entity sustainability managers, risk managers
and finance department.
For further information read
Recommendations of the Task Force on Climate-related
Financial Disclosures
TCFD-aligned disclosure Application guidance
Technical Supplement of The Use of Scenario Analysis
in Disclosure of Climate-related Risks and Opportunities
Physical risk analysis
Physical risk refers to the direct and indirect
impacts of weather as a result of climate change
on businesses, infrastructure, and communities.
It includes acute risks such as extreme weather
events like floods, droughts and wildfires and
chronic risks such as long-term changes like rising
temperatures and sea-level rise, both of which
threaten operational stability and resilience.
Transition risk assessment
Transitional risk refers to the financial, operational,
and strategic risks businesses face as economies
shift towards a low-carbon future. These risks arise
from evolving policies, regulations, market
dynamics, technological advancements, and
changing stakeholder expectations. For the
transitional risk assessment, we considered both
country-specific and Group-level regulatory
requirements. As ASA International Group plc is
incorporated in the UK and listed on the London
Stock Exchange, and ASA International N.V.
operates at the holding level in the Netherlands,
we are subject to UK and Dutch/EU regulations.
These regulations have a cascading impact on our
entities across various jurisdictions.
Limitations
As this is our first scenario analysis, we
acknowledge some limitations in our approach.
The assessment was conducted from publicly
available information from established data models
rather than developing an in-house model. In some
instances, the analysis of physical risks was
constrained by data availability, underlying
assumptions, and regional gaps. Additionally,
transitional risks and financial impact were
evaluated qualitatively due to the absence of
accurate direct data sources for certain parameters.
Moving forward, we will seek opportunities to
strengthen our methodology, contingent on
feasibility and data improvements.
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10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
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38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
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ESG Report (continued)
Physical and transitional risks by country
• Pakistan: Faces medium physical and transition
risks, with a limited number of clients in Punjab
and Sindh regions exposed to extreme heat,
drought, rising temperatures, and water stress.
• Philippines: Medium physical risk due to
typhoons, floods, landslides, and earthquakes,
but low transition risk due to less regulatory
pressure for rapid decarbonisation.
• Tanzania: Low to medium physical risk and
medium transition risk; drought remains a
primary concern, while decarbonisation efforts
could impact its traditional energy dependence.
• Ghana: Low physical risk but medium transition
risk; Greater Accra and Ashanti regions are
expected to face extreme heat, drought, and
water stress which will affect a small number of
agricultural clients.
• Kenya: The assessment indicates low physical
risk but medium transition risk, with anticipated
climate-related challenges including rising
temperatures, water stress, and extreme heat.
Regionally, Kisumu is expected to face flood
risks, while Mombasa is projected to experience
drought and extreme heat. However, these
factors are expected to have an insignificant
impact on overall operations.
Scenario analysis summary (continued)
Scenario analysis result
Scenario 1: <2°C scenario
Countries in our portfolio will experience low to medium physical risks, with the Philippines most vulnerable to
extreme weather events. Transition risks are medium, driven by regulatory shifts, carbon pricing, and stricter
sustainability requirements, affecting agriculture, retail, and energy-dependent businesses. Proactive planning
and investments in sustainable practices will be key to mitigating long-term risks.
Summary of risk analysis for <2°C scenario
Time horizon: Long-term (10+ years); 2050
Entity
Average physical
risk Score
Average
transitional risk
score from
country
perspective
Average
transitional risk
score from
Group
perspective
Group
Portfolio Size
(As of Dec 2024)
Pakistan 7.6 7 5.5 21.4 %
Philippines 7.6 4 4.3 14.4 %
Tanzania 4.4 7 7.8 20.3 %
Ghana 5.6 7.5 7 16.0 %
Kenya 5.3 7 8.5 8.7%
Risk level
Low Medium High
Group perspective on transitional risks
In the <2°C scenario, global regulations will become
more stringent, impacting financial reporting,
emissions reductions, and operational costs:
• EU regulations: Tighter sustainability reporting
(CSRD, SFDR), methane reduction targets, and
stricter emission controls may increase costs,
especially in Pakistan, Kenya, and the Philippines.
• UK regulations: A stronger Net Zero Strategy,
stricter carbon pricing (UK ETS), and expanded
TCFD reporting may drive higher compliance
costs and investment in clean energy.
Sectoral impact
• Agriculture: Moderate vulnerability due
to weather extremes, but compliance with
emission regulations, sustainable farming,
and reduced fuel subsidies may increase
operational costs.
• Trade/Retail: Supply chain disruptions, rising
costs for sustainable sourcing, and energy
efficiency investments may impact small traders
but create new opportunities in low-carbon
markets.
• Services: Minimal business risk, but push for
clean energy adoption and energy efficiency
improvements may require upfront investments.
This summary presents an overview of key
climate-related risks, their associated parameters,
and potential implications for our operations and
financial performance. The risks have been
categorised into broader groups to provide a
structured overview, while individual parameters
have also been assessed separately to ensure a
comprehensive assessment.
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10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
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51 ESG report
53 Advancing the SDGs
54 Socially responsible
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Scenario analysis summary (continued)
Scenario analysis result of NGFS “Orderly Transition” & SSP1-2.6
Scenario 1: < 2°C
Alignment: NGFS “Orderly Transition” & SSP2-2.6
Timeframe: 10+ years (long-term)
Risk and related
parameters Assumptions
Operational
impact
Sectoral
vulnerability
Financial
impact Rationale
Potential mitigation
strategy
Policy and legal
(Carbon pricing trajectory,
Emission reduction targets
and policies, litigation
landscape, subsidies reduction
on fossil fuel)
Stricter global climate policies, carbon
pricing, and emission regulations.
Reduction in fossil fuel subsidies.
Increased compliance costs,
operational adjustments, and
potential litigation risks for us
and our agricultural clients.
Low to
medium
(Score: 3-8)
Given our business growth trajectory, a limited
increase in emissions is anticipated. The
estimated financial exposure to carbon pricing
ranges between EUR 400k – 1,000k, which
remains below 1% of the expected PBT. The
group’s total emissions, recorded at 5,721 tCO
2
in 2024, are subject to the EU ETS pricing,
anticipated to rise from EUR 70-75/tCO
2
in 2030
to EUR 130/tCO
2
in 2040. Additionally, the
microfinance business has historically not been
subject to ESG litigations, minimising legal risks.
However, the reduction of fossil fuel subsidies
may lead to a moderate increase in operational
costs, particularly for vehicle, generator, and
electricity expenses. Notably, transportation
costs alone are projected to reach USD 10 million
in 2050, making it a significant operational
expenditure for the Group. Such values can result
in low to medium impact in the long term.
Monitor regulations,
implement emission
reduction strategies,
and consider financing for
clean energy solutions.
Technology
(Change in Energy Mix,
Availability of low-carbon
technologies)
Transition to clean energy and
adoption of energy-efficient
systems.
Upfront investment costs for
integrating new technologies.
Low
(Score: 3)
Require higher investment for both clients and
Company. The expected budget for shifting to
solar systems and installing in 204 branches is
USD 0.5 million for the year 2025. Changes in the
energy mix will push the operating costs down.
Invest in renewable energy
and partner with green
technology providers.
ESG Report (continued)
Sectoral Vulnerability key
Agriculture Low Medium High
Trade
Low Medium High
Service
Low Medium High
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11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
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24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
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Risk and related
parameters Assumptions
Operational
impact
Sectoral
vulnerability
Financial
impact Rationale
Potential mitigation
strategy
Market
(The increased cost of
material, client behaviours)
Changing material costs and evolving
client behaviour in response to
climate policies.
Potential financial instability
for clients in fossil-fuel-
dependent sectors like
agriculture and trade.
Low
(Score: 2-6)
The increased production cost for clients will lead
to higher demand for microfinance loans. The
Company’s clients are micro-entrepreneurs who
deal with essential goods and services. It is highly
unlikely to see any change in customer behaviour
related to transitioning to a low-carbon economy.
Increased loan disbursement requirement will
drive the need for additional funding from
external sources and this might have an impact on
the costs of funding.
Support client adaptation
to market changes.
Reputation
(Meeting regulatory
demands, lenders perception,
sustainability benchmarks
and trends)
Growing regulatory demands and
sustainability expectations from
investors, lenders and other
stakeholders.
Need for enhanced
ESG reporting and
compliance efforts.
Low
(Score: 4)
The group is actively engaging with investors,
lenders and other stakeholders to align with
corporate sustainability and climate action
expectations. Furthermore, global sustainability
benchmarks may have limited impact on our
clients’ small-scale businesses.
Strengthen ESG reporting,
stakeholder engagement,
and benchmarking against
industry standards.
Acute physical risks
(Floods, cyclones, extreme
heat, drought, wildfire,
landslides)
Reduced frequency of extreme
weather events due to climate
mitigation efforts. However, most
regions in the Philippines remain
prone to floods and cyclones.
The Company’s and clients’
improved resilience to physical
risks enhances financial
stability and reduces default
rates, boosting overall
performance.
None
(considering
resilience by
2050)
Low
(Score: 6)
Business operations will remain stable due to the
reduced frequency of extreme weather events.
Develop a risk assessment
framework for clients,
support client adaptation,
and strengthen resilience
efforts in vulnerable areas.
Chronic physical Risks
(Rising temperature, Sea-level
rise, increased precipitation,
water stress)
Gradual climate changes with
moderate long-term impacts.
Some regions in Kenya and Pakistan
may face water stress, while parts of
the Philippines may suffer from
sea-level rise.
While most clients across
our regions successfully adapt
to moderate climate changes
in this scenario, some may
still face challenges, leading
to increased credit risk and
potential impacts on
portfolio quality.
None
(considering
resilience by
2050)
Low
(Score: 6)
Gradual climate changes will impact client
repayment behaviour. This might lead to
increased credit loss expenses for the Group.
However, the total value would not be significant.
Offer (financial) products to
support resilience, focus on
adaptation measures, and
strengthen risk assessments
for high-risk branches.
Scenario analysis summary (continued)
ESG Report (continued)
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11 Operational model
13 Section 172 statement
16 Our strategy
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Scenario analysis summary (continued)
Scenario 2: > 3°C
In this scenario, delayed or insufficient climate action leads to a global temperature rise of over 3°C,
resulting in severe physical risks such as extreme weather events, economic instability, and increased
financial risks for the Company. While transitional risks remain low due to less stringent regulations,
operational disruptions and increased costs are expected.
Summary of risk analysis for “current policies” scenario
Time Horizon: Long-term (10+ years); 2050
Entity
Average physical
risk Score
Average
transitional risk
score from
country
perspective
Average
transitional risk
score from
Group
perspective
Group
Portfolio Size
(As of Dec 2024)
Pakistan 11.5 3.5 4.3 21.4 %
Philippines 11.6 3.5 3.5 14.4 %
Tanzania 6.6 4 4.8 20.3 %
Ghana 8.1 4 3.5 16.0 %
Kenya 8.4 4 4 8.7%
Risk level
Low Medium High
Physical and transitional risks by country:
• Pakistan: Medium physical risks due to rising
temperatures and water stress, particularly in
Punjab and Sindh which will impact our client in
the agriculture sector. Low transitional risk due
to slow decarbonisation efforts.
• The Philippines: High exposure to extreme
weather events, impacting infrastructure and
livelihoods. Low transitional risk due to minimal
regulatory pressure.
• Kenya: Medium physical risks, particularly
droughts and rising temperatures. Low
transitional risk due to renewable energy
advancements.
• Ghana: Medium physical risks, especially
extreme heat and droughts affecting agriculture.
Low transitional risk with moderate
policy changes.
• Tanzania: Low to medium physical risks, with
some flood-prone regions. Low transitional risk
as sustainability adoption progresses slowly.
Group perspective on transitional risk:
• EU & UK regulations: Climate policies remain
less stringent, allowing for gradual adoption of
sustainable practices. Lower compliance costs
for the Group, reduced financial burden for
low-carbon technologies, and more flexibility in
sustainability reporting (CSRD, SFDR, TCFD).
Sectoral impact
• Agriculture: Highly vulnerable to droughts,
extreme heat, and floods, threatening crop
yields and food supply chains.
• Trade/Retail: Moderate disruptions from
extreme weather affecting logistics and supply
chains, causing price volatility.
• Services: Moderate impact as a result of
infrastructure damage or business disruptions
from extreme weather events.
ESG Report (continued)
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11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
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Scenario analysis summary (continued)
Scenario analysis result of NGFS “hot house world” and SSP2-4.5
Scenario 2: >3°C
Alignment: NGFS “hot house world” and SSP2-4.5
Timeframe: 10+ years (long-term)
Risk and related
Parameters Assumptions
Operational
impact
Sectoral
vulnerability
Financial
impact Rationale
Potential mitigation
strategy
Policy and legal
(Carbon pricing trajectory,
Emission reduction targets
and policies, litigation
landscape, subsidies reduction
on fossil fuel)
Climate policies remain inconsistent
and reactive, with minimal
acceleration in national emission
targets and region-specific reporting
requirements. Legal risks may rise
due to increasing climate-related
lawsuits and financial penalties in
vulnerable regions. Meanwhile,
fossil fuel subsidies are gradually
decreasing, but immediate impacts
on energy prices remain limited.
Compliance costs and
regulatory uncertainty would
rise slowly, causing minimal
financial strain, while emission
tracking and reporting efforts
would remain moderate.
Clients in energy-intensive
sectors would face limited
impact, with only a slight
increase in default risks.
None Low
(Score 3–4)
The slower implementation of the Carbon
Pricing policy across five subsidiaries by 2050
is expected to have minimal financial impact on
the Group’s assets, revenue, and expenditures.
With a projected 2% annual emissions growth,
the estimated carbon pricing exposure remains
under 0.5% of expected PBT. Regulatory
changes are not expected to be significant, and
ESG litigation risks remain low based on past
trends. Operational costs, including vehicle and
generator expenses, are expected to remain
stable, with total transportation costs
projected at USD 10 million for 2050.
Adaptive pricing strategies,
carbon exposure tracking,
promoting energy efficiency
among clients, ensuring
compliance readiness.
Technology
(Change in energy mix,
availability of low-carbon
technologies)
Slow transition towards renewables;
fossil fuels remain a dominant
source.
Low-carbon technology development
is available in a limited manner.
Minor operational changes;
investments in renewable
energy may develop at a
slower pace.
None Low
(Score 3–4)
Require lower investment for both clients and
Company. Additionally, changes in the energy
mix will push the operating costs down.
Monitor trends, phase in
energy-efficient solutions,
and explore renewables
financing.
Market
(The increased cost of
material, client behaviours)
Costs for raw materials gradually
rise due to climate change impacts
on supply chains.
MFIs are increasingly expected to
offer services that promote
resilience against climate impacts,
especially in high-risk areas.
Some clients may struggle
with cost increases, but
demand for microfinance loans
remains stable.
None Low
(Score 4)
The demand for microfinance loans will remain
the same. The Company’s clients are micro-
entrepreneurs who deal with essential goods
and services. It is highly unlikely to see any
change in customer behaviour related to
transitioning to impact resilient economy.
Promote supply chain
diversification and support
client adaptation to
market changes.
ESG Report (continued)
Sectoral Vulnerability key
Agriculture Low Medium High
Trade
Low Medium High
Service
Low Medium High
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10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
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51 ESG report
53 Advancing the SDGs
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Risk and related
Parameters Assumptions
Operational
impact
Sectoral
vulnerability
Financial
impact Rationale
Potential mitigation
strategy
Reputation
(Meeting regulatory demands,
lenders perception,
sustainability benchmarks
and trends)
Greater scrutiny from the public and
stakeholders on climate alignment,
especially in developed and
high-impact regions.
Slow shift towards integrating ESG
risk in lender evaluations.
Industry shift towards climate action
as impacts are more visible,
increasing pressure for climate risk
strategies and competitive
sustainability practices.
Increased reporting workload;
potential long-term funding
challenges if ESG performance
lags.
None Low
(Score 3–6)
The Group is already working with the
investors, lenders and other stakeholders
to cater their expectations to corporate
sustainability and climate action. The global
sustainability benchmarks are less likely to
impact our clients’ business or us.
Invest in ESG compliance
tools, communicate efforts
to lenders, align with
sustainability benchmarks.
Acute physical risks
(Floods, cyclones, extreme
heat, drought, wildfire,
landslides)
Increased frequency and severity of
extreme weather events, especially
in Pakistan and the Philippines
where cyclones may become more
frequent. Extreme heat and drought
might also be prevalent. Although
there is medium risk of landslides as
well in Kenya, Pakistan and the
Philippines on a country level, the
hazard might not have much impact
on regional level.
Medium default rates and
financial instability may occur
due to increased disruptions.
However, disaster recovery
products could stabilise client
operations and provide new
revenue streams for
the Company.
Medium
Score 12
(Impact 3,
Likelihood 4)
Business operations will be impacted by
the increased frequency of extreme
weather events.
Invest in resilience-building
initiatives and targeted
(financial) products. Maintain
partnerships with local
organisations to support
disaster preparedness and
recovery plans.
Chronic physical risks
(Rising temperature, sea-level
rise, increased precipitation,
water stress)
Significant long-term changes in
climate, including rising temperature,
accompanied by water stress is
expected in Ghana, Kenya and
Pakistan. All the countries are in
medium to high vulnerable zones in
terms of rising temperature as well.
Clients may face persistent
challenges in managing
long-term risks, increasing their
financial burden and impacting
their ability to repay loans.
However, climate adaptation
financing could offset some of
these risks and support
long-term growth.
Medium
Score 12
(Impact 3,
Likelihood 4)
Gradual changes in climate will heavily impact
on the client repayment behaviour. This might
lead to increased credit loss expense for the
Group.
Offer (financial) products to
support resilience, support
client adaptation to increased
water stress, salinity and
heatwaves.
Scenario analysis summary (continued)
ESG Report (continued)
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04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
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Annual Reports and Accounts 2024
ESG Report (continued)
Scenario analysis summary (continued)
Conclusion
While climate scenario analysis does not predict
the future, it serves as a valuable tool for evaluating
the potential implications of various climate
pathways on our operations, downstream value
chain, and financial assets. The outcome of the
analysis suggests that our strategy and financial
position are well positioned to remain resilient to
climate change in the long term. Under a <2°C
scenario, risk management, regulatory compliance,
and credit assessment will be impacted due to
stricter climate policies and ESG regulations. In a
>3°C scenario, loan disbursement, collections,
branch operations, and portfolio management will
face disruptions from extreme weather. However,
under all evaluated scenarios, capital and
operational expenditures are expected to have
minimal financial impact for the Group. We
continue to actively mitigate risks, refine our
business strategy for the transition to a low-carbon
economy, and increase the resilience of our clients
over time. Going forward, we will continue to
update this analysis as needed, integrating
mid-term assessments and considering more
detailed financial projections to further enhance
our risk evaluation and strategic planning.
Strategic Report
77
ASA International Group plc
Annual Reports and Accounts 2024
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Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
Topic
2024
target
2024
achievement
2025
target
Increase energy efficiency
by replacing regular lights
with LEDs
2-2.5k
LEDs
3.5k
LEDs
N/A
Share knowledge and create
awareness by training
clients, colleagues and
communities
300-400k
trainees
222k
trainees
300-400k
trainees
Improve waste management
through various reduce,
reuse and recycle initiatives
Various
initiatives
N/A
Various
initiatives
Climate targets
Topic
2024
target
2024
achievement
2025
target
Increase the use of
renewable energy by
installing solar panels
200-300
panels
305
panels
150-200
panels
Reduce fuel consumption
by introducing electric
motorbikes
15-25
electric
bikes
38
electric
bikes
20-30
electric
bikes
Absorb CO
2
and protect
the environment by
planting trees
20-30k
trees
27.7k
trees
30-40k
trees
ESG Report (continued)
ESG CASE STUDY
Advancing climate
goals by installing
solar systems
In 2024, ASA Nigeria equipped 78 branches
with solar systems, bringing the total to 106
branches—approximately 40% of all locations.
This initiative aligns with the Group’s climate
goals, reducing reliance on fossil fuels and
lowering carbon emissions.
Solar systems have replaced traditional
generators across all equipped branches, saving
an estimated 20,000 litres of fuel in 2024
alone. These systems, which include solar
panels, inverters, and battery storage, provide a
reliable backup during grid outages, ensuring
uninterrupted operations while reducing
energy costs.
Branch staff and management have reported
increased efficiency, cost savings, and a
stronger sense of environmental responsibility.
While challenges such as installation logistics
and staff training arose, these were addressed
through partnerships with experienced solar
providers and comprehensive training
programs.
Looking ahead, ASA Nigeria plans to expand
this initiative, installing solar systems in 80
more branches in 2025, further strengthening
their commitment to sustainability and energy
efficiency.
Read more about another climate
initiatives on page 49
Metrics and targets
The Group has taken its first steps
towards mitigating emissions by defining
and achieving targets. Its next objective is
to enhance its metrics for performance
measurement to advance its efforts and
increase transparency.
Management and disclosure
• Feasibility study assessing opportunities to
reduce emissions at subsidiary level conducted.
• Disclosure of GHG emissions according to
Scope 1 and 2, and category 6 ‘business travel’
and category 7 ‘employee commuting’ of Scope
3 in the SECR report. See page 81
• Energy use, loan management, financial assets,
and the value chain are expected to face low
long-term transition risk, though specific
vulnerabilities remain under analysis.
• Climate-related metrics are not yet included in
Remuneration policies.
• Internal carbon pricing mechanism not yet
considered for targets.
• Forward-looking metrics have not been used.
• Emission sources identified. Subsidiaries
propose and implemented feasible reduction
initiatives for own operations, forming the basis
for the disclosed 2023, 2024 and 2025 Group
targets.
• Based on the climate targets of all subsidiaries,
the 2025 Group targets have been approved by
the Sustainability Committee. Performance is
tracked and reported quarterly.
• Exploring adoption of metrics to measure
performance and alignment with frameworks
such as the Science Based Targets initiative.
Progress Group targets 2024
• Quarterly progress reports were submitted,
complemented by bi-annual meetings with
the subsidiary Managing Directors to
assess progress.
• Targets were met within the designated ranges,
with the exception of knowledge sharing.
• Knowledge sharing faced logistical and external
challenges. Entities remained committed,
adjusting timelines as needed.
Setting Group targets 2025
• Maintain continuity by addressing similar key
areas as the previous year.
• The target for solar system installations has
been reduced due to expansion opportunities,
investment viability, supply chain constraints,
and maintenance challenges. The Company
continues to assess the market to ensure future
installations remain accessible and sustainable.
Strategic Report
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01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
Compliance statement
In meeting the requirements of Listing Rule
9.8.6R(8), we have concluded that
• The Group complies with TCFD Recommended
Disclosures: Governance a and b; Strategy C;
Risk a, b and c; and Metrics and targets a and b.
• The Group partially complies with TCFD
Recommended Disclosures: Strategy a and b
and Metrics and targets c.
• The Group does not comply with TCFD
Recommended Disclosures: none
In assessing compliance, the documents referred
to in the guidance notes to the Listing Rule were
taken into consideration. In the table to the right,
cross-references are added to where the
disclosures are located or a reason is provided
for non-compliance with an expected timeframe
to achieve compliance. Compliance with the
Companies Act 2006, s414CB(2a)-(2h), is
demonstrated in the column to the right.
ESG Report (continued)
TCFD
elements
TCFD
recommended disclosures
Cross-reference or reason
for non-compliance
Next steps and
other comments
CA 414CB
1
Governance
• Board oversight
• Management’s role
• See ‘Board oversight’ on page 66.
• See ‘Role of management’ on page 66.
• CA s414CB(a)
Strategy
• Climate-related risks and
opportunities
• Impact on the
organisation’s business,
strategy and financial
planning
• Resilience of the
organisation’s strategy
• See ‘Identifying risks’ on page 67.
• See ‘Impact of CRRO’s on the
organisation’s businesses, strategy
and financial planning’ on page 67.
• See ‘Scenario analysis’ on pages
69 to 77.
• Further develop scenario analysis and
consider additional time horizons over
the 1–3 years.
• CA s414CB(d)
• CA s414CB(e)
• CA s414CB(f)
Risk
management
• Risk identification and
assessment processes
• Risk management process
• Integration into overall risk
management
• See ‘Identifying risks’ on page 67.
• See ‘Managing CRROs’ on page 67.
• See ‘Integrating climate risks into overall
risk management’ on page 67.
• CA s414CB(b)
• CA s414CB(c)
Metrics
and targets
• Climate-related metrics in
line with strategy and risk
management process
• Scope 1, 2 and 3
greenhouse gas (‘GHG’)
metrics and the related risks
• Climate-related targets and
performance against targets
• See ‘Management and disclosure’
on page 78.
• See ‘Streamlined Energy Carbon
Reporting’ on page 80 and 81.
• See ‘Climate targets’ on page 78.
• The Group will be taking steps over
the next 1-3 years to have closer
alignment with Universal Standards.
• CA s414CB(h)
• CA s414CB(g)
1 Companies Act 2006, s414CB(2a)-(2h).
Strategic Report
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01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
2023 Streamlined Energy
and Carbon Reporting (‘SECR’)
The Group’s emissions calculations and reporting
follow the Greenhouse Gas Protocol Corporate
Standard (operational control approach) covering
its energy usage in 2024.
In 2024, the Group continued to collect data
on energy use and business travel for operations
covering 15 regions, including 14,231 FTEs (as per
Group HR data, excluding one staff of MU office)
and 2,151 offices (including the Company’s
headquarters in the Netherlands and Bangladesh).
The table includes the Group’s energy use and
associated carbon emissions in 2024, broken down
by Scopes 1, 2 and 3.
Energy efficiency actions
Actions taken in 2024 Planned action in 2025
Continued to monitor and maintain office buildings (both leased and
owned) to ensure energy-efficient operation. This includes annual
maintenance and cleaning of air conditioning systems, and checking
for misuse of water, electricity and office vehicles. Such maintenance
also keeps fire hazards at bay.
Action to continue.
Subsidiaries are digitising processes and printing less. Continue to minimise the use
of paper in all offices with the aim
of achieving zero printing in
the future.
Most operating subsidiaries successfully met their 2024 climate
targets, which included phased installation of solar panels, tree
planting, adoption of electric motorcycles, installation of LED
lighting, improved waste management practices, and enhanced
knowledge sharing initiatives.
Climate targets for 2025 have been
set, maintaining a strong focus on
the key areas addressed in 2024.
Read more about setting and
achieving targets on page 78.
ESG Report (continued)
In 2024, the Group continued to collect
data on energy use and business travel for
operations covering 15 countries,
including 14,231
1
full-time employees
(‘FTEs’) and 2,151 offices
2
. The table
includes the Group’s energy use and
associated carbon emissions in 2023 and
2024, broken down by Scopes 1, 2 and 3.
The Group is required to report annual global GHG
emissions in line with the UK government’s
Streamlined Energy and Carbon Reporting (‘SECR’)
guideline, implemented by the Companies
(Directors’ Report) and Limited Liability
Partnerships (Energy and Carbon Report)
Regulations 2018. These regulations came into
force on 1 April 2019 and require organisations to
publicly report on carbon emissions and energy use.
1 Excluding one staff member from the ASAI Holding office
in Mauritius because of negligible impact.
2 Including the head offices and the Company’s headquarters
in the Netherlands and Bangladesh.
Strategic Report
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01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
2023 Streamlined Energy
and Carbon Reporting (‘SECR’) (continued)
Methodology and scope
The Group is responsible for the internal
management controls governing the data collection
process, data aggregation, any estimations and
extrapolations applied (as required), the GHG
calculations performed and the emissions
statements.
GHG emissions were calculated according to the
Greenhouse Gas Protocol Corporate Accounting
and Reporting Standard.
Scope and subject matter
The boundary of reporting includes all operating
subsidiaries and facilities owned, leased or actively
managed by the Group, as well as business travel
in Company-owned vehicles or employee-owned
or hired vehicles where the Company is responsible
for purchasing the fuel. This also includes air travel.
Energy and GHG sources included
in the process
• Scope 1: Direct emissions from owned or
controlled assets of the Company. Emissions
from combustion of fuel in owned or controlled
vehicles and generators have been included.
• Scope 2: Indirect emissions from the generation of
purchased electricity consumed by the Company.
A location-based method has been applied.
• Scope 3: Indirect emissions that occur as a result
of the Company’s activities but are not directly
owned or controlled by the Company. This
includes emissions from business travel and
employee commuting.
Waste and fugitive emissions from refrigeration
(e.g. air conditioning) are omitted from the report
due to lack of data.
Types of GHGs included, as applicable: CO
2
, N
2
O,
CH
4
, HFCs, PFCs, SF
6
and NF
3
.
The figures were calculated using UK government
2023 conversion factors, expressed as tonnes
of carbon dioxide equivalent (tCO
2
e).
The Company does not disclose emissions for the
UK or offshore areas as it does not have any
operations in those regions.
Particulars 2024 2023
Energy consumption used (kWh)
Electricity (kWh) 3,773,080 3,864,000
Gas (kWh) 1,350,431 1,216,605
Transport fuel (kWh) 31,475,169 45,605,160
Other energy sources (kWh) 1,379,929 2,016,146
Total (kWh) 37,978,609 52,701,911
Emissions (tCO
2
e)
Scope 1
Emissions from combustion of gas (tCO2e) 277 247
Emissions from combustion of fuel for transport purposes (tCO2e) 3,023 4,818
Emissions from combustion of fuel for generators (tCO2e) 310 469
Scope 2
1
Emissions from purchased electricity (tCO2e) 1,790 747
Scope 3
Category 7: Employee commuting2 (tCO2e) 1,610 1,687
Category 6: Business travel3 (tCO2e) 479 606
Total location based tCO2e 7,489 8,574
Intensity ratio
Number of FTE within financial year
4
14,231 13,432
Intensity ratio: tCO2e from Scope 1, 2 and 3/FTE location based 0,53 0.64
1 Location-based method applied.
2 Includes travel in rental cars and public transport.
3 Includes flight data.
4 One staff member from the Mauritius office is excluded.
Verification
Internally by the Company.
ESG Report (continued)
Strategic Report
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01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
Non-financial and
sustainability
information statement
As a socially responsible lender, the Group
has a wide range of policies and practices
to ensure that the Company and its staff
comply with environmental, social and
legal requirements, including respecting
human rights, and adhere to the highest
professional and ethical standards in
dealing with clients, suppliers,
communities and each other. This
statement provides an overview of topics
and related reporting references
as required by sections 414CA and 414CB
of the Companies Act 2006.
ESG Our policies and practices Description Page reference
Exclusion list
Our exclusion list prevents financing businesses that harm biodiversity or the environment, aligning with
international conventions where applicable.
Read more
on page 64
Environment and
Social Management
System (‘ESMS’)
Our ESMS sets out plans, policies, and procedures to manage environmental and social risks, aiming to
minimise negative impacts and promote good governance. It aligns with industry standards, including
IFC Performance Standards 1 and 2, the SMART Campaign, and the Universal Standards for Social
Performance Management.
Read more
on page 64
Environmental policy
Our environmental policy outlines the actions that its staff must take to minimise and prevent any
harmful impacts on the environment.
Read more
on page 64
Travel policy
Our travel policy promotes responsible and sustainable travel practices, with a particular focus on air
travel. It outlines the necessary factors to consider and steps to take before undertaking air travel for
business purposes.
Read more
on page 64
Natural Calamity
Impact Assessment
(‘NCIA’)
The Group assesses the impact of natural disasters, such as floods and earthquakes, on its resources and
overall operations. This analysis provides valuable insights into the Company’s susceptibility to such
calamities, identifying areas that may require adaptation to mitigate risks.
Read more
on page 64
Emergency
Preparedness and
Response Plan (‘EPRP’)
The EPRP aims to protect people, resources, and critical information while ensuring continuity of
essential operations. It sets out the Company’s emergency response strategies to prepare for and
mitigate the impact of crises.
Read more
on page 64
Client Protection
Principles (‘CPP’)
The CCP, developed by the SMART Campaign, is an industry standard that outlines the minimum client
protection expectations for microfinance providers, ensuring institutions serve clients’ best interests.
Read more
on page 55
Client Complaint
Resolution Committee
(‘CCRC’)
Through the CCRC clients can provide direct feedback on services or lodge complaints
about inappropriate behaviour or treatment by any of the Group’s staff. Every quarter a report is shared
with senior management by the CCRC with the nature of complaints and actions taken.
Read more
on page 56
Grievance Mitigation
Committee (‘GMC’)
The Group has established an effective grievance mechanism for all employees, allowing them to raise
any work-related concerns or complaints without fear of reprisal.
Read more
on page 58
Health and safety
The Group monitors health and safety risks, provides regular training, and takes preventive and
corrective actions on incidents. Each subsidiary has a health and safety committee and an integrated
checklist to ensure ongoing supervision and monitoring.
Read more
on page 58
Diversity, Equity and
Inclusion (‘DEI’) policy
The DEI policy integrates diversity, equity, and inclusion into internal practices, guiding the
implementation and monitoring of initiatives to foster a thriving, diverse workforce.
Read more
on page 60
Social Policy
The Company’s Social Policy ensures the protection of social and environmental interests, focusing on
uplifting clients’ social standards and safeguarding employees’ rights in a responsible work environment.
Read more
on page 55
Human Resource
(‘HR’) Policy
The Company’s HR Policy governs staff conditions and practices, promoting fairness, transparency, and
equal treatment through consistent rules and procedures.
Read more
on page 57
Corporate Social
Responsibility (‘CSR’)
Policy
The CSR policy provides a framework for planning and evaluating community initiatives in health,
education, environment, and disaster relief, ensuring alignment with the Company’s mission and fostering
sustainable social and environmental impact.
Read more
on page 61
ESG Report (continued)
Strategic Report
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01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
ESG Our policies and practices Description Page reference
Whistleblowing
Employees are strongly encouraged to speak up about any actions that might violate laws, regulations,
or Company policies. They can do so by using a designated complaint box or reaching out directly to the
local Chair of the Audit and Risk Committee, as well as at the Group level. Examples of such actions
encompass improper or unethical business practices, concerns related to health, safety, and the
environment, or breaches of the Code of Conduct.
Read more on
pages 58 and
102 and our
website
Child Labour and
Protection
The Group is dedicated to safeguarding children directly or indirectly affected by its operations.
It implements strict policies to prevent child labour, collaborates on education and welfare initiatives,
and promptly addresses any identified cases, ensuring children’s rights and well-being are protected.
Read more on
our website
Sexual Harassment
Elimination
The Company promotes a safe work environment and has a zero-tolerance policy towards harassment
of any kind, particularly sexual harassment.
Read more on
page 102 and
on our website
Non-Discrimination
Unfair discrimination in any form is unacceptable. Management and employees must ensure a fair and
sympathetic work environment for all, regardless of marital status, religion, disability, sexuality, gender,
race, or ethnicity. This policy of equal opportunities and diversity extends to recruitment, remuneration,
training, development, promotion, discipline, and all aspects of employment, including volunteers,
interns, clients, suppliers, and others with whom ASA International or its employees engage.
Read more on
page 108 and
on our website
Code of Conduct
and Ethics
The Group’s Code of Conduct and Ethics is designed to be ethical, dignified, transparent, equitable and
cost-effective, and expresses the core values of microfinance practice.
Read more on
our website
Anti-Bribery and
Anti-Corruption
This policy is to combat improper payments or inducements and provide basic guidance to all employees,
wherever they are located. The Group adopts a zero-tolerance approach to bribery and corruption,
ensuring compliance with all applicable anti-bribery and anti-corruption laws and regulations, including
the UK Bribery Act 2010.
Read more on
page 103 and
on our website
Fraud and
Misappropriation
Protection (‘FMPU’)
Policy
The FMPU Policy outlines procedures for preventing and reducing financial risks from fraud and
misappropriation, focusing on continuous review, investigation, and promoting a culture of fraud
awareness and accountability. FMPU is part of the Group’s second line of defence.
Read more
on page 39
and on our
website
Anti-Money
Laundering
The Company and its subsidiaries are firmly committed to preventing money laundering and any activity
that facilitates it or supports terrorist or criminal endeavours in their operations.
Read more
on page 44
and on our
website
Non-financial and sustainability
information statement (continued)
Read the remaining reporting requirements
Business model on page 11
Principal risks on pages 40 to 48
Diversity and gender on page 60 and 107 – 108
Climate-related financial disclosures on pages 65 to 79
Find the description of the tools and indicators
ESG report on pages 55 to 60 and 64
Alternative Performance Measures (‘APM’) table on page 205
ESG Report (continued)
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Strategic report
01 2024 highlights
02 Company overview
04 Growth with purpose
06 Chair’s statement
07 Feature story – Our clients
08 Group CEO Statement
10 Our key differentiators
11 Operational model
13 Section 172 statement
16 Our strategy
19 Feature story – Our colleagues
21 Key Performance Indicators
23 Financial review
24 Group financial performance
29 Regional performance
38 Risk management
40 Principal risks
49 Feature story – Our communities
51 ESG report
53 Advancing the SDGs
54 Socially responsible
63 Environmental responsibility
and resilience
Corporate governance report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
Corporate
governance
report
84
ASA International Group plc
Annual Reports and Accounts 2024
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Corporate governance report
85 Chair’s introduction
86 Board of Directors
88 Executive Committee
89 Country Heads
91 Board activities
92 Leadership from the Board
94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
Governance
Chair’s introduction
I am pleased to present our Board Report
for 2024.
This year the Board worked diligently
throughout the year to strengthen its
governance and risk management frameworks
that underpin the successful achievement of
our strategic objectives, namely sustainable
growth driven by our unwavering commitment
to financial inclusion.
We continued to manage through a number of significant
business challenges, particularly the ongoing effects of high
inflation and currency devaluation in many of our markets.
In addition, we have ensured that the leadership transitions
in the second half of the year did not significantly affect the
business. Indeed, our performance improved as the year
progressed, adding to our confidence for 2025 and beyond,
and as we continue to progress of our digital transformation
strategy.
The Board is scheduled to meet five times a year at regular
intervals. However, this year, it convened formally on eight
occasions, with additional informal meetings held to address
key issues as they arose. The various Board Committees that
include the Audit and Risk Committee, Nomination
Committee, Remuneration Committee and Independent
Directors’ Committee continued their regular meetings. I
greatly appreciate the dedication of all Directors, who
consistently commit their time and effort to ensuring the
success of our organisation.
Karin Kersten stepped down as CEO, and the Board
appointed Rob Keijsers as Interim CEO from 1 November
2024 till 1 April 2025. On 1 April 2025, Rob Keijsers was
appointed Group CEO. Additionally, the Executive
Committee has been strengthened in Q1, 2025, with the
appointment of a new Chief Risk and Compliance Officer;
Guy Dawson stepped down as Chairman; however he
remains on the Board as a Non-Executive Director. Also we
welcomed Sheila M’Mbijjewe as an Independent Non-
Executive Director – her extensive experience as a former
regulator at the Central Bank of Kenya is a valuable addition
to the Board.
Furthermore, we strengthened our local leadership with the
appointment of several country CEOs and CFOs who bring
strong local market expertise and track records. These
organisational enhancements reflect our commitment to
strengthening leadership, reinforcing governance and
ensuring that we are well positioned to achieve our
long-term goals.
With these leadership and governance improvements in
place, we can look ahead to 2025 with renewed confidence.
I would like to extend my sincere appreciation to the Board
and senior management team for their dedication and hard
work, as well as to all our employees across our thirteen
operating countries and head offices, for their unwavering
commitment to deepening financial inclusion and
empowering female entrepreneurship.
Chris Low
Chairperson
ASA International Group plc
23 April 2025
Our performance improved as the
year progressed, reinforcing our
confidence that the Group has
returned to sustainable growth.”
CHRIS LOW
CHAIRPERSON
85
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Governance
Strategic report
Corporate governance report
85 Chair’s introduction
86 Board of Directors
88 Executive Committee
89 Country Heads
91 Board activities
92 Leadership from the Board
94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
Board of Directors
Appointed: 15 May 2018
Board roles
• Co-founder of ASA International in 2007
• Served as Executive Director and CEO
until 15 June 2023
• Appointed as Deputy Chairperson and Advisor
to the Executive Committee on 15 June 2023
Career and experience
With over two decades in investment banking
and 15 years in microfinance, Dirk Brouwer has
been instrumental in driving financial inclusion
through ASA International. His leadership and
expertise have contributed to the growth of
microfinance initiatives and investment strategies
in emerging markets. He is the Managing Director
of Catalyst Microfinance Investors (‘CMI’), which
he co-founded in 2006.
Appointed: 1 February 2023
Board roles
• Chairperson of the Board from 01 April 2025
• Non-Executive Director from February 2023
till 1 November 2024
• Executive Chairperson of the Board from
1 November 2024 till 31 March 2025
• Chairperson of the Audit & Risk Committee
till 16 December 2024
• Chairperson of the Nomination Committee
since 16 December 2024
Current Board memberships
• United Bank for Africa (UK) Ltd
• Ed Partners Africa Holdings Ltd
• Scottish Africa Business Association
Career and experience
With over 30 years in international financial
services, risk management, and digital
transformation, Chris Low has developed deep
expertise in emerging markets. His career spans
Africa, Asia, and the Middle East, where he
has played a key role in financial innovation
and strategic leadership. He previously served
as Regional Director for East Africa at I&M
Group Plc and advised FinTech start-ups.
Appointed: 28 June 2018
Board roles
• Non-Executive Director of ASA International
Holding since 2013
• Director of the Company since 28 June 2018
• Served as Chairperson of the Board from
1 January 2021 till 1 November 2024
Current Board memberships
• Non-Executive Director of Egerton Capital
• Non-Executive Director of Citywire Holdings
Career and experience
With extensive experience in corporate governance
and financial management, Guy Dawson has played
a key role in the leadership of ASA International.
His expertise spans investment oversight, board
governance, and strategic planning across various
financial institutions.
Chris Low
Chairperson
N
ID
Guy Dawson
Independent Non-Executive
Director
A/R
N
R
ID
Dirk Brouwer
Non-Executive
Deputy Chairperson
Rob Keijsers
Chief Executive Officer
Appointed: 1 November 2024
Board roles
• CEO of ASA International since 1 April 2025
• Interim CEO of ASA International from
1 November 2024 till 1 April 2025
• Holds non-executive board positions
in ASA International subsidiaries
Previous experience
• Held key leadership roles at ABN AMRO,
focusing on digital transformation and
international business services
• Served on the board of Volt Nederland
Career and experience
With extensive experience as a transformation
executive, Rob Keijsers has played a pivotal role in
driving strategic and digital change across financial
institutions. His leadership at ASA International,
along with his tenure at ABN AMRO, demonstrates
his ability to enhance business efficiency and foster
innovation. His expertise in strategy, technology,
and cross-functional collaboration has made a
significant impact on the organisations
he has served.
Building on our Board leadership
The Board of ASA International combines leadership in microfinance
with strong international finance and banking experience.
Committee membership key
A/R
Audit and Risk
R
Remuneration
A/R
N
R
Committee Chair
N
Nomination
ID
Independent Directors
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86 Board of Directors
88 Executive Committee
89 Country Heads
91 Board activities
92 Leadership from the Board
94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
Board of Directors (continued)
Appointed: 7 December 2020
Board roles
• Non-Executive Director since December 2020
Academic & advisory roles
• Professor at the Graduate School of
Management, BRAC University
• Independent Director of Grameenphone Ltd
• Current adviser to Bangladesh’s interim
government specifically the Ministry of
Finance and the Ministry of Science
and Technology.
• Member of advisory bodies for multiple
governmental and non-governmental agencies
in Bangladesh
• Member of the board of trustees for three
universities and a postgraduate institute
Consulting & research
• Consultant for various international agencies
• Author of over 90 publications
Career and experience
Dr. Salehuddin Ahmed is a distinguished
academic and policy expert with a strong
background in economics, governance, and
financial sector development. His contributions
to academia, public policy, and corporate
leadership have made a significant impact in
Bangladesh and beyond.
Appointed: 28 June 2018
Board roles
• Non-Executive Director since June 2018
• Appointed Senior Independent Director
on 1 January 2021
• Chair of the Remuneration Committee
• Chair of Audit and Risk Committee since
16 December 2024
Board memberships & leadership roles
• Chair of the Board of Directors for Dutch
pension provider and asset manager MN
• Chair of the Audit Committee at insurer
Vivat – Athora NL
• Chair of the Audit Committee at healthcare
insurer Menzis
• Chair of the Audit Committee at the National
ICT Institute for Healthcare (The Netherlands)
• Supervisory Board member at ZGT
(The Netherlands)
• Deputy member of the Board of the
Dutch Court of Auditors since 2020
Career and experience
Hanny Kemna brings extensive expertise in audit,
risk management, and governance, particularly
in financial and government institutions. Her
leadership in regulatory oversight and financial
accountability has been pivotal in strengthening
corporate governance frameworks.
Hanny Kemna
Senior Independent
Non-Executive Director
A/R
N
R
ID
Dr Salehuddin Ahmed
Independent
Non-Executive Director
A/R
N
R
ID
Sheila M’Mbijjewe
Independent
Non-Executive Director
A/R
R
ID
Appointed: 17 December 2024
Board Roles
• Non-Executive Director since December 2024
Leadership roles & other memberships
• Deputy Governor, Central Bank of Kenya
(2015–2023)
• Board Member, African Stability Board
• Director, Financial Reporting Centre (FRC),
Kenya.
• Director, Capital Markets Authority of Kenya
• Director, Bamburi Cement Ltd.
• Director, Transparency International Kenya
Chapter
• Vice Chair, Kenya Women’s Finance Trust
(Microfinance).
• Director, University of Nairobi Enterprise
and Services (UNES) Ltd.
• Rhodes Scholarship Selection Committee
(Kenya).
Career and experience
Sheila M’Mbijjewe’s broad engagement across
finance, education, and social welfare reflects
her commitment to societal impact and diverse
expertise. Her appointments highlight her influence
in financial markets, corporate governance,
education, and philanthropy, shaping Kenya’s
financial landscape and extending to regional
and international platforms.
On 23 April 2025, the Board appointed a new
Non-Executive Director, Mr. John G Khabbaz.
Female – 2
Male – 5
Board by gender
Board by age
<50 – 1
50-60 – 0
60-70 – 4
>70 – 2
Executive members – 2
Non-Executive members – 5
Balance of the Board
<2 years – 3
2-7 years – 4
Board by tenure
Board diversity
See our diversity listing rule table
in our Nomination Committee
report on page 108
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86 Board of Directors
88 Executive Committee
89 Country Heads
91 Board activities
92 Leadership from the Board
94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
Joint corporate headquarters in Dhaka and Amsterdam
Rob Keijsers
Chief Executive Officer
Joined: 2022
Years of financial services
experience: 18
Tanwir Rahman
Chief Financial Officer
Joined: 2017
Years of financial services
experience: 17
Ezazul Islam
Head of Internal Audit
Joined: 2024
Years of financial services
experience: 11
Azim Hossain
Chief of Operations
Joined: 2007
Years of financial services
experience: 36
Martijn Bollen
Chief Legal Officer
Joined: 2007
Years of financial services
experience: 18
Grace Thiongo
Chief Risk and Compliance
Officer
Joined: 2025
Years of financial services
experience: 18
Executive Committee
The Group’s senior management has
significant experience in financial services,
including the microfinance industry (‘MFI’).
Full biographies are available
Executive Committee
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86 Board of Directors
88 Executive Committee
89 Country Heads
91 Board activities
92 Leadership from the Board
94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
Country Heads
The Group’s senior management
has significant experience in
financial services, including the
microfinance industry (‘MFI’).
Pakistan
Myanmar
India Philippines
Saeed Uddin Khan
42 years of financial services experience
Appointed: November 2019
Md. Muzammel Haque
19 years of financial services experience
Appointed: November 2023
Anjan Dasgupta
37 years of financial services experience
Appointed: April 2013
T. I. M. Fakruzzaman
32 years of financial services experience
Appointed: August 2007
“ 2024 was a watershed year, marked by the launch of banking
operations and the rollout of the Temenos 24 Core Banking
Software. Our footprint grew to 380 locations, and despite
challenges, our client base reached 662k and OLP grew by 28%
in USD term. We focused on solarising our network, reducing
emissions, and advancing gender diversity as well. In 2025, we
are well positioned to drive growth through deposit mobilisation,
digital products, and technological investments.”
“ Despite the challenges the country is facing, our dedicated team made
remarkable progress this year. We grew client outreach by 10%, expanded
our portfolio to MMK 53.7bn (USD 25.6m). Collection efficiency remained
stable during 2024. In 2025, we’ll focus on digitalisation to enhance safety,
efficiency, and growth while maintaining strong portfolio quality and
low risk.”
“ Despite ongoing challenges, we remained resilient in 2024, strategic
cost rationalization, branch mergers, and digital finance adoption
strengthened operations. We upheld our financial commitments
through strong collections. In 2025, ASA India will focus on
innovation, and responsible growth while maintaining mission-driven
service, expanding digital collections, and sustaining financial
stability through diligent portfolio management and Business
Correspondent partnerships.”
“ We maintained steady achievements, despite challenges like natural
calamities in 2024, while upholding sustainability and promoting diversity,
equity, and inclusion. Our OLP reached PHP 3.4bn (USD 58.4m) and our
client base grew to 353k. We began strengthening internal controls through
technology, which will be further enhanced in 2025. Furthermore, we aim to
improve discipline, reduce Portfolio At Risk (‘PAR’), boost portfolio quality
and profitability, and integrate digitalisation for long-term growth.”
South Asia
South East Asia
Sri Lanka
Nimesh Fernando
20 years of financial services experience
Appointment date: May 2025
“ I am excited to be joining Lak Jaya on 1 May 2025. I look forward to
contributing to the continued growth of its operations, which in 2024
reached a client base of 44k and an OLP of LKR 1.45bn (USD 5.0m)”
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86 Board of Directors
88 Executive Committee
89 Country Heads
91 Board activities
92 Leadership from the Board
94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
Country Heads (continued)
West Africa
East Africa
Sierra Leone
Ghana
Kenya
Rwanda Uganda
Tanzania
Zambia
Nigeria
Shariful Islam Khan
15 years of financial services experience
Appointed: May 2018
Md. Aourongjeb
18 years of financial services experience
Appointed: March 2013
Ahsan Habib
18 years of financial services experience
Appointed: July 2023
Christian Salifou
12 years of financial services experience
Appointed: September 2024
Allen Semboze
22 years of financial services experience
Appointed: September 2024
Muhammad Shah Newaj
15 years of financial services experience
Appointed: March 2014
Leeth Gondwe
13 years of financial services experience
Appointed: March 2025
Funmilola Paseda
25 years of financial services experience
Appointed: October 2024
“ From 2023 to 2024, we saw remarkable growth, with OLP rising to SLE
143.4m (USD 6.3m), borrowers increasing by 10%, and Gross OLP per client
growing by 26% YoY in SLE. In 2025, we’ll expand our branch network, grow
our portfolio, and reach more borrowers for sustainable growth.”
“ 2024 was a pivotal year, increasing portfolio to GHS 993.3m (USD 67.5m)
and expanding our client base by 11%, which significantly enhanced our
overall performance. I’m proud that our team improved efficiency, growing
gross OLP per client by 45% in GHS. Investing in staff, clients, and
communities drove our success. In 2025, we are targeting to launch our
Digital App with a new T24 CBS, for a seamless experience and bringing
services to our clients’ doorsteps.”
“ In 2024, we rebounded from a challenging FY 2023, exceeding
all KPIs, achieving several firsts and increasing our results. Our
OLP grew to KES 4.7bn (USD 36.3m) and client base increased
to 262k, meanwhile we kept portfolio quality highest level at
PAR>30 below 0.3%. With a high talent retention rate and a
high client satisfaction rate, our strong employee relations and
teamwork will guarantee better performance in 2025.”
“ It was transformative year, with a 10% client base growth YoY
and an increase in results. In 2025, we’ll focus on expanding
outreach, improving efficiency, and investing in our people.
Our strategy centres on sustainable growth, digital innovation,
and community impact. Through our Community programmes,
we addressed malnutrition by donating goats, planted 400
trees, and provided electric motorcycles to field staff,
reinforcing our commitment to sustainability and long-term
value for the communities we serve.”
“ We achieved strong growth in 2024, with our results
increasing. Our client base expanded by 24% YoY, reaching
nearly 150k customers, driving growth in our loan portfolio,
clients per loan officer and per branch. We also expanded
our branch network to 125. These results reflect our team’s
dedication and commitment. In 2025, we’ll continue investing
in our people, enhancing customer service, diversifying
our products, digitising operations, and expanding our
branch network.”
“ We achieved significant milestones in 2024, reaching 280k
active clients and expanding to 221 branches. We improved
results and efficiency, laying a solid foundation for growth.
In 2025, we’ll focus on performance, cost reduction,
employee initiatives, and digital transformation, while
driving sustainability, innovation and financial inclusion
across Tanzania.”
“ In 2024, our OLP base grew to ZMW 87.8m (USD 3.1m) and
number of clients increased to 29k. The company optimized
financial stability. In 2025, we will expand our branch network,
transition to cashless transactions, enhance financial inclusion,
and boost employee engagement through incentives,
marketing, and CSR, driving sustainable growth and digital
transformation.”
“ 2024 was a landmark year, with our results improving after overcoming
past losses. We improved portfolio quality (PAR>30) from 12.1% in 2023
to 4.9% in 2024, grew OLP to NGN 17.0bn (USD 11.0m) and increased
deposits as well. Effective stakeholder engagement drove these results.
In 2025, we’ll expand our client base, optimise service delivery,
strengthen our productivity culture, and deepen relationships with
clients and communities.”
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86 Board of Directors
88 Executive Committee
89 Country Heads
91 Board activities
92 Leadership from the Board
94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
Board Activities
Governance and Leadership
• Rob Keijsers was appointed CEO on 1 April
2025. Before that, he served as Interim CEO
from 1 November 2024 to 1 April 2025 after
Karin Kersten stepped down.
• Sheila M’Mbijjewe was appointed to the Board
on 17 December 2024.
• The Board oversaw a review of the composition
of the subsidiaries’ boards in order to improve
governance there.
• The Board discussed the current position on
Diversity, Equity and Inclusion and noted the
plans for simplifying reporting and improving
progress.
• The Board discussed changes in country
leadership and benchmarking pay.
• A Chief Information Security Officer (CISO)
function was established, with key staff in
Amsterdam and Dhaka.
Financial And Operations Oversight
• Given the sustained improvement in business
and financial performance seen over the course
of 2024, management proposed the payment of
dividends to ASA International Group plc
shareholders with an initial interim dividend
paid in December 2024.
• The Board reviewed key elements of the 2025
budget, including salary assumptions and
growth expectations for clients and branches.
• As part of the Board’s oversight of financial
governance, Group Finance and country CFOs
joined a CFO conference with audit teams to
address key audit issues and explore ways the
finance function can better support the
Company’s goals.
• The Board reviewed the strategy for India, and
supported investigating options to divest India.
Strategic and Technological Initiatives
• The Company continued to focus on digital
transformation, including the implementation
of a Core Banking System (CBS) and a digital
financial services platform (DFS app).
The digitalization of client procedures was
prioritized.
• CBS implementation was completed in Pakistan,
with ongoing progress in Ghana and Tanzania.
• In anticipation of the further evolution and
digitalization of the business, the Board oversaw
the appointment of new CEOs in Rwanda,
Uganda and Nigeria and new CFOs in a number
of African countries.
• The digital transformation strategy was revised
to focus on establishing in-country ‘private
cloud hosts’ in African markets, while the
existing infrastructure could be used in
countries permitting the use of the public cloud.
• The CISO’s roadmap includes improving
the organization and security posture, enhancing
global and local security standards, ensuring
compliance with cybersecurity laws, and
improving group reporting on security posture.
Stakeholder Engagement and Compliance
• The Board approved the Group’s culture
statement and emphasized engagement with
shareholders and the workforce.
• Country Heads participated in meetings with
regulatory bodies, strengthening relationships
with local councils, law enforcement,
government bodies, and microfinance networks.
• The Board reviewed a thematic audit on fraud
risk and ensured that actions to enhance
controls were followed through.
• As a socially responsible lender, the Company
maintained policies and practices to comply
with environmental, social, and legal
requirements, including adhering to client
protection principles and ethical standards.
• The Board discussed progress on diversity and
sustainability targets, as well as community
projects.
• Overall the board remained committed to ASA’s
strategic objectives while tackling operational
challenges and strengthening financial resilience
across key markets.
Meeting attendance
Member name Meetings attended
Executive Director
Rob Keijsers (from 1 Nov 2024) 3/3
Karin Kersten (Until 1 Nov 2024) 5/5
Non-Executive Director
Chris Low 8/8
Dirk Brouwer 8/8
Guy Dawson 8/8
Hanny Kemna 8/8
Salehuddin Ahmed 8/8
Sheila M’Mbijjewe (from 17 Dec 2024) 1/1
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89 Country Heads
91 Board activities
92 Leadership from the Board
94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
Leadership from the Board
The Board’s primary role is to provide
overall leadership and to ensure that the
Company is appropriately managed to
deliver long-term stakeholder value.
The Board of Directors (‘Board’) is responsible
for setting the Company’s objectives and policies,
and providing the effective leadership and control
required for a public company. It is also responsible
for approving the Group strategy, budgets,
business plans and major capital expenditure,
and it monitors financial performance and critical
business issues.
The Board oversees the Group’s operations, with
the aim of ensuring that it maintains a framework
of prudent and effective controls, which enables
risks to be properly assessed and appropriately
managed. The Governance report is structured
around the key themes of the UK Corporate
Governance Code (‘Code’) to provide genuine
understanding of how governance supports
and protects the Group and our stakeholders.
Board size and composition
The Board comprises: Chris Low (Chairperson),
Dirk Brouwer (Deputy Chairperson), Rob Keijsers
(Chief Executive Officer), Guy Dawson
(Independent Non-Executive Director),
Hanny Kemna (Independent Non-Executive
Director), Dr Salehuddin Ahmed, (Independent
Non-Executive Director), Sheila M’Mbijjewe
(Independent Non-Executive Director). Salehuddin
Ahmed will retire from the Board with effect from
the conclusion of the 2025 AGM.
The Company is committed to ensuring that any
vacancies that may arise are filled by the
best-qualified and most suitable candidates and
recognises the value of gender and ethnic diversity
in the composition of the Board. When Board
positions become vacant as a result of retirement,
resignation or otherwise, the Board aims to ensure
(through the Nomination Committee, and using an
external search agency as appropriate) that a
diverse pool of candidates is considered. By a
process of annual review, the Board ensures
that it continues to consist of members who have
the relevant knowledge, skills and expertise to
undertake their duties as Directors in such a way
as to ensure proper corporate governance and help
to generate sustainable long-term value
for stakeholders.
Biographical details of the Directors at the date of
this report are set out on page 86-87 together with
details of their membership of Board Committees.
Board balance and Non-Executive Directors’
independence
In accordance with the Code, the Board maintains a
well-balanced composition, with Non-Executive
Directors deemed by the Board to be independent
in character and judgment, free from any
relationships or circumstances that may, or may
appear to, influence their decision-making. The
Board consists of seven Directors: a Non-Executive
Chairperson, a Chief Executive Officer (‘CEO’), and
five Non-Executive Directors, four of whom are
considered independent by the Board, which is
satisfied that they are free from any business or
other relationship that could materially interfere
with the exercise of their independent judgement.
Despite the fact that Mr Low is technically not
considered as independent for the purpose of the
balance requirement under the Code and despite
his brief period (November 2024 – March 2025)
as Executive Chairperson, he performs his role in
an independent fashion. The Board remains fully
satisfied with the performance of Mr Low, who
in 2024 and early 2025 played a crucial part in
ensuring a smooth transition between CEOs.
While, Mr Dawson has served on the Board for
over nine years, the Board is satisfied that he
continues to meet the independence requirements
under the Code.
Senior Independent Director
As recommended by the Code, the Board has
appointed one of the Non-Executive Directors to
be the Senior Independent Director to provide a
‘sounding board’ for the Chairperson in matters of
governance and to serve as an intermediary for the
other Directors and for shareholders when
required. The Senior Independent Director meets
the other Non-Executive Directors once a year to
appraise the performance of the Chairperson, and
is available to shareholders if they have concerns
which contact through the normal channels of the
CEO and the Chair has failed to resolve or for
which such contact is inappropriate. Hanny Kemna
has been the Senior Independent Director since
1 January 2021.
The Code further recommends that Directors
should be subject to annual re-election. All the
Directors of the Company (except Rob Keijsers and
Sheila M’Mbijjewe who were appointed later) were
re-elected at the AGM held on 20 June 2024.
Compliance with the UK Corporate
Governance Code 2018 (‘the Code’)
See the Corporate Governance Statement in the
Directors’ report on page 124.
Matters reserved for the Board
The Board has responsibility, inter alia, for the
overall leadership of the Company and setting
the Company’s values and standards. Specifically,
it approves the annual operating and capital
expenditure budgets and any material changes to
them. It also oversees the operations of the Group
so as to ensure prudent management, planning, risk
management and internal control systems,
adequate accounting and other records, and
compliance with statutory and other regulatory
obligations. It periodically reviews performance in
the light of the Group’s strategic aims and business
plans and budgets, and ensures that any necessary
corrective action is taken. The Board is responsible
for approving the interim and annual financial
statements and the Annual Report, including the
dividend policy, the declaration of interim dividends
and the proposal of final dividend to shareholders.
The Board has overall responsibility for ensuring
a sound system of internal control and risk
management, including procedures for the
detection of fraud and the prevention of bribery.
The Board has delegated the day-to-day running of
the Group, to the CEO and his management team,
who review and approve all of the information and
proposals that are submitted to the Board.
Directors receive a pack of briefing notes and
reports for their consideration in advance of each
Board meeting, including reports on the Company’s
operations, so as to ensure that they remain briefed
on the latest developments and are able to make
fully informed decisions. The briefing notes and
reports, and the Board’s consideration of them,
take into account the factors set out in section 172
of the Companies Act 2006 concerning the need to
have regard to the interests of the Company’s
various stakeholders.
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89 Country Heads
91 Board activities
92 Leadership from the Board
94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
Leadership from the Board (continued)
All Directors have access to the advice and services
of the Company Secretary, who is responsible for
ensuring that Board procedures are followed and
that applicable rules and regulations are complied
with. All Directors may take independent
professional advice at the expense of the Company
in the furtherance of their duties, if they judge it
necessary. On appointment, all Directors are
advised of their duties, responsibilities and
liabilities as a Director of a public listed company.
Directors have the right to request that any
concerns they have are recorded in the appropriate
Committee or Board minutes.
Relationship Agreement
The Company has entered into a relationship
agreement (the ‘Relationship Agreement’) with its
founders (the ‘Controlling Shareholder Group’),
the principal purpose of which is to ensure that the
Company will be able, at all times, to carry out its
business independently of the members of the
Controlling Shareholder Group and their respective
associates. The Relationship Agreement contains
undertakings from each of the members of the
Controlling Shareholder Group that (i) transactions
and relationships with it and its associates will be
conducted at arm’s length and on normal
commercial terms, (ii) neither it nor any of its
associates will take any action that would have the
effect of preventing the Company from complying
with its obligations under the UK Listing Rules, and
(iii) neither it nor any of its associates will propose
or procure the proposal of a shareholder resolution
which is intended or appears to be intended to
circumvent the proper application of the UK Listing
Rules. The Company is in compliance with the
undertakings in the UK Listing Rules.
In accordance with the terms of the Relationship
Agreement, for so long as Catalyst Microfinance
Investors (‘CMI’) (currently holding 21.94%) and
Catalyst Continuity (currently holding 18.13%)
together retain (i) an aggregate interest of greater
than or equal to 25% in the issued ordinary share
capital of the Company, they shall together be
entitled to appoint two Non-Executive Directors
to the Board (but at present have not done so),
and (ii) an aggregate interest of less than 25% but
greater than or equal to 10% in the issued ordinary
share capital of the Company, they shall together
be entitled to appoint one Non-Executive Director
to the Board. In addition, for so long as CMI and
Catalyst Continuity together retain an interest of
10% or more in the issued ordinary share capital of
the Company, they shall be entitled to appoint one
Non-Executive Director to each of the Company’s
Nomination Committee and Remuneration
Committee.
The Relationship Agreement will terminate if the
ordinary shares cease to be listed on the premium
listing segment of the Official List and traded on
the London Stock Exchange or the Controlling
Shareholder Group together ceases to retain an
interest of 10% or more of the issued ordinary
share capital of the Company (or an interest which
carries 10% or more of the aggregate voting rights
in the Company from time to time).
Management succession
Ms. Karin Kersten stepped down as CEO, and the
Board appointed Rob Keijsers as Interim CEO from
1 November 2024 to 1 April 2025. Chris Low
assumed the role of Executive Chairperson of
ASA International Group plc during this period, from
1 November 2024 to 1 April 2025. On 1 April 2025,
Rob Keijsers was appointed Group CEO, while
Chris Low transitioned to Chairman (Non-Executive).
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Strategic report
Corporate governance report
85 Chair’s introduction
86 Board of Directors
88 Executive Committee
89 Country Heads
91 Board activities
92 Leadership from the Board
94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
Governance Framework
The Board
controlling shareholder or related party (each as
defined under the UK Listing Rules), on the other
hand. It is also responsible for overseeing and
scrutinising the relationship between the Group, its
related parties and its controlling shareholders
(including evaluating, monitoring and approving any
material transactions or arrangements between
such parties and generally monitoring compliance
with the Relationship Agreement (see page 93).
The Independent Directors’ Committee comprises
all of the Independent Non-Executive Directors,
being Salehuddin Ahmed, Guy Dawson, Hanny
Kemna, Chris Low and Sheila M’Mbijjewe. The
Committee met three times in 2024.
Disclosure Committee
The Disclosure Committee is chaired by the Chief
Executive Officer (‘CEO’), and includes members of
the Executive Committee and the Head of Investor
Relations. The Committee supports the Board in
identifying inside information and recommending
its disclosure per the Company’s procedures,
ensuring compliance with the Market Abuse
Regulation. Detailed reports on each Board
Committee, including their roles, responsibilities,
and yearly activities, are provided later in
this report.
Meetings of the Board
At each scheduled meeting, the Board receives
reports from the CEO, Chief of Operations (‘COO’)
and the Chief Financial Officer (‘CFO’) on the
performance and results of the Group. In addition,
the Chief Risk & Compliance Officer (‘CRCO’)
provides updates on regulatory and compliance
matters, and the Chief Legal Officer (‘CLO’)
provides updates on legal and corporate affairs.
The Board also receives regular updates from the
Head of Treasury and the Head of Internal Audit.
Audit and Risk
Committee
Nomination
Committee
Remuneration
Committee
Independent
Directors’
Committee
Disclosure
Committee
1
The Board has established a number of Committees,
to which responsibility for certain matters has been
delegated. The Board Committee structure is shown
in the diagram above. Each Committee has written
terms of reference setting out its roles and
responsibilities, and the extent of the authority
delegated by the Board. The terms of reference are
available on the Company’s website. The Chair of
each Committee reports regularly to the Board on
matters discussed at Committee meetings.
The Board Committees
The Board has established the three Committees
envisaged by the Code: an Audit and Risk Committee,
a Nomination Committee and a Remuneration
Committee. The Board has also established an
Independent Directors’ Committee. If the need
should arise, the Board may set up additional
Committees as appropriate. Reports on the
Committees’ activities in 2024 appear later in
this report.
Audit and Risk Committee
The Audit and Risk Committee has responsibility for,
amongst other things, monitoring the integrity of the
financial statements of the Company, reviewing the
Company’s internal financial controls and monitoring
and reviewing the effectiveness of the Company’s
Internal Audit function and external audit process.
The Audit and Risk Committee was chaired by Chris
Low till 16 December 2024 with Hanny Kemna and
Salehuddin Ahmed as members. Thereafter, Hanny
Kemna became Chair on an interim basis, with
Sheila M’Mbijjewe set to take over in due course.
As of 16 December 2024, the Committee
comprises Hanny Kemna (as Chair), Sheila
M’Mbijjewe (from 17 December 2024), Guy
Dawson, and Salehuddin Ahmed. It meets at least
four times a year and convened five times in 2024.
Nomination Committee
The Nomination Committee assists the Board in
determining the composition and make-up of the
Board. It is responsible for periodically evaluating
the balance of skills, experience, independence and
knowledge of the Board. It leads the process for
Board appointments and makes recommendations
to the Board, taking into account the challenges
and opportunities facing the Group in the future.
The Nomination Committee was chaired by Guy
Dawson until 16 December 2024 after which it was
chaired by Chris Low, and its other members during
2024 were Hanny Kemna and Salehuddin Ahmed.
The Nomination Committee meets at least twice a
year, and met seven times in 2024.
Remuneration Committee
The Remuneration Committee assists the Board in
fulfilling its responsibilities in relation to
remuneration. This includes making
recommendations to the Board on the Company’s
policy on executive remuneration, including setting
the overarching principles, parameters and
governance framework of the Group’s
Remuneration Policy and determining the
individual remuneration and benefits package of
each of the Company’s Executive Directors and its
Company Secretary. The Remuneration Committee
also ensures compliance with the Code in relation
to remuneration.
The Remuneration Committee is chaired by Hanny
Kemna, with other members being Chris Low (until
16 December 2024) and Salehuddin Ahmed. As of
16 December 2024, the Remuneration Committee
comprises Hanny Kemna, Guy Dawson, Salehuddin
Ahmed and Sheila M’Mbijjewe (from 17 December
2024). The Remuneration Committee normally
meets at least three times a year, and met six times
in 2024.
Independent Directors’ Committee
The Independent Directors’ Committee identifies
and manages matters involving conflicts of interest
(including potential conflicts of interest) between
any Group company, on the one hand, and any
1 The Disclosure Committee is not strictly speaking a Board committee, as it consists entirely of executive staff.
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86 Board of Directors
88 Executive Committee
89 Country Heads
91 Board activities
92 Leadership from the Board
94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
Governance Framework (continued)
Operational updates are provided by the COO, and
updates related to IT systems of the Company are
provided by the CEO. An annual schedule of rolling
agenda items ensures that all matters are given due
consideration and are reviewed at the appropriate
point in the financial and regulatory cycles. Meetings
are structured to ensure that there is sufficient time
for consideration and debate on all matters.
In addition to scheduled or routine items, the
Board also considers key issues that impact the
Group, as they arise.
The Directors receive detailed papers in advance
of each Board meeting. The Board and Board
Committee agendas are carefully structured by
the CEO, CLO and the Company Secretary for the
Chair’s approval. Each Director may review the
agenda and propose items for discussion with the
Chair’s agreement. Additional information is also
circulated to Directors between meetings, including
relevant updates on business and regulatory
announcements. The annual Board meeting
schedule is set well in advance to help ensure the
availability of all Directors. In the event that
Directors are unable to attend the meetings, they
receive papers in the normal manner and have the
opportunity to relay their comments and questions
in advance of the meeting, as well as follow up with
the Chair if necessary. The same process applies in
respect of the various Board Committees.
The briefing for each of its meetings covers
financial and operating performance, treasury, risk,
human resources, legal and compliance, internal
audit, IT, GMC, FMPU and CSR matters.
Management accounts are produced for each
Board meeting together with an updated dashboard
of key performance indicators, broken down by
geographical region.
On a monthly basis, the Board receives a
management report covering operations, the
financial and budgetary situation, internal audit,
taxation, treasury, risk, human resources, legal
and compliance matters, and CSR matters.
A further aspect of reporting to the Board is Social
Performance Management (‘SPM’), which covers the
handling of complaints, satisfaction surveys, and the
achievement of social goals. (This is referred to in
more detail in the Non-financial and sustainability
information statement on pages 82 and 83.)
For further information on the Board’s work during
the year and a table of attendance at Board and
Committee meetings, see ‘Board activities’ on
page 91.
Chairperson and Chief Executive Officer
The division of responsibilities between the
Chairperson and the CEO has been agreed by the
Board. The Chair has responsibility for the
leadership of the overall effectiveness of the Board,
setting the Board’s agenda, ensuring the
maintenance of a proper balance of skills and
experience on the Board, succession planning, and
the provision to the Board of accurate, clear and
timely information to support sound decision-
making and to enable individual Directors to fulfil
their duties. Between 1 November 2024 and
1 April 2025 there was an interim arrangement
whereby Rob Keijsers was Interim CEO and Chris
Low Executive Chairman. Upon Rob Keijsers’
confirmation as CEO on 1 April 2025, Chris Low
reverted to being in a non-executive role.
The Chairperson was Guy Dawson until 31 October
2024 and subsequently Chris Low who presently
chairs the Board. Chris Low’s other significant
commitments are set out in his biography on page
86. The Board is satisfied that his other
commitments do not restrict him in carrying out
his duties effectively.
The CEO, Rob Keijsers, reports directly to the
Chairperson of the Board and is responsible for all
executive management within the Group on a
day-to-day basis, within the authority granted by
the Board. Dirk Brouwer continues his role as the
Deputy Chairperson and Special Adviser.
The Company’s Independent Non-Executive
Directors are Hanny Kemna, Salehuddin Ahmed,
Guy Dawson and Sheila M’Mbijjewe. Within the
Board’s overall risk and governance structure,
the Independent Non-Executive Directors are
responsible for contributing sound judgement and
objectivity to the Board’s deliberations and the
decision-making process. They also provide
constructive challenge and oversight, and monitor
the Executive Directors’ delivery of the
Company’s strategy.
Powers of Directors
The Directors are responsible for the management
of the Company. They may exercise all powers of
the Company, subject to the Articles of Association
and to any directions given by the shareholders by
a special resolution.
Appointment and removal of Directors
The appointment of Directors is governed by the
Company’s Articles of Association, the Companies
Act 2006 and other applicable regulations and
policies. Directors may be elected by shareholders
in general meeting or appointed by the Board of
Directors in accordance with the provisions of the
Articles of Association. All of the then Directors of
the Company were re-elected at the AGM held on
20 June 2024. In accordance with the Code, all
Directors retire and may stand for re-election at
each AGM.
Letters of appointment for individual Directors are
available for inspection by shareholders at each
AGM and during normal business hours at the
Company’s registered office. The Articles of
Association provide that in addition to any power
to remove Directors conferred by the Companies
Act 2006, the Company may remove any Director
from office by ordinary resolution of which special
notice has been given.
Board performance evaluation
The Board has recently carried out a self-assessment
exercise about the performance of the Board, the
Committees and the individual Directors in 2024. As
in previous years, the procedure followed was that
each Board and Committee member completed a
questionnaire, adding comments where appropriate,
the results of which were then circulated on an
anonymised, aggregated basis to the Board. The
Board discussed the points arising from the
assessment and agreed several actions to address in
2025. In line with the requirements of the 2024 UK
Corporate Governance Code, the Board will
consider carrying out an externally facilitated review
of its performance, and that of its Committees, in
future.
The review showed that the Board, its Committees,
and individual Directors continue to work well
together and are effective, with progress in the areas
identified for improvement from previous
evaluations. In April 2024, the Board received a
detailed presentation on the implementation of the
Group’s digital strategy which was a finding from the
2023 review. Throughout 2024, the Board continued
to receive regular updates on the implementation of
the Group’s digital strategy as well as other key
strategic initiatives detailed in this Report. The
Nomination Committee continued to oversee and
receive regular updates on changes to country
Boards and executive leadership, and progress
towards improving diversity, which is inherent in the
Group’s strategy to ensuring the ASA model is
well-embedded throughout the Group.
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86 Board of Directors
88 Executive Committee
89 Country Heads
91 Board activities
92 Leadership from the Board
94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
Governance Framework (continued)
The recent Board assessment identified various areas
for further improvement centred around improving
Board reporting processes, focusing discussions on
key strategic, risk management and people issues,
reviewing the roles of the Committees and their
composition following recent Board changes and
considering the ongoing training needs of directors
and staff. An update on progress towards these
actions will be provided in the 2026 Annual Report.
Reappointment of Directors at the 2025 AGM
The Board has confirmed its view that each of
the Directors continues to be effective and to
demonstrate commitment to their role.
On the recommendation of the Nomination
Committee, the Board will therefore be
recommending all of the Directors for re-
appointment at the AGM, except Salehuddin
Ahmed who will retire at the 2025 AGM.
The Board has determined that the Non-Executive
Directors with the exception of Dirk Brouwer,
continue to meet the independence criteria set
out in the Code.
Induction and professional development
On appointment, all new Directors receive a
comprehensive and personalised induction
programme to familiarise them with the Group,
tailored to their specific requirements. The
Company also provides bespoke inductions for
the relevant Directors when they are appointed
as a Committee Chair. Induction programmes are
tailored to a Director’s particular requirements,
but would typically include site visits, one-to-one
meetings with Executive Directors, the Company
Secretary and senior management for the business
areas and support functions and meetings with the
external auditor. Directors also receive guidance
on Directors’ liabilities and responsibilities.
In addition, the Chairperson and CEO may agree
any specific requirements as part of each
Non-Executive Director’s regular reviews.
Company Secretary
The Company Secretary is responsible for ensuring
that Board procedures and applicable rules and
regulations are observed and for advising the
Board, through the Chairperson or the CLO, on all
governance matters. All Directors have direct
access to the services and advice of the Company
Secretary, who also acts as secretary to the Board
Committees.
Conflicts of interest
The Articles of Association include provisions
giving the Directors authority to approve conflicts
of interest and potential conflicts of interest as
permitted under the Companies Act.
A procedure has been established whereby actual
and potential conflicts of interest are regularly
reviewed and appropriate authorisation sought
prior to the appointment of any new Director or if a
new conflict or potential conflict arises. Directors
are regularly reminded that they must declare,
before or at the beginning of the meeting
concerned, any matter on the agenda for the
meeting in respect of which they may have a
conflict of interest; they will, if necessary, withdraw
from the meeting during the discussion of that item
and not participate in any decision relating to it.
The decision to authorise a conflict of interest can
only be made by non-conflicted Directors
(effectively, the Independent Directors’ Committee
less any of its members who may be connected
with the relevant conflict), and in making such a
decision the Directors must act in a way they
consider, in good faith, will be most likely to
promote the success of the Company. The Board is
satisfied that this procedure operated effectively
throughout the year.
Board and Committee effectiveness
Annual Board and Committee evaluation
See ‘Board performance evaluation’ on page 95.
Board of Directors
Chief Executive Officer
Executive Committee
Operations Risk & Compliance Internal Audit
Finance (Accounts, Investor
Relations & Treasury)
Human Resources
1
Legal
Digital and Information Technology
1
South Asia South East Asia East Africa West Africa
India The Philippines Tanzania Nigeria
Pakistan Myanmar Uganda Ghana
Sri Lanka Kenya Sierra Leone
Rwanda
Zambia
1. The positions in these two departments are
expected to be filled shortly.
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86 Board of Directors
88 Executive Committee
89 Country Heads
91 Board activities
92 Leadership from the Board
94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
Governance Framework (continued)
Management and operational structure
The Executive Committee presently consists of the
Chief Executive Officer (‘CEO’), the Chief of
Operations (‘COO’), the Chief Financial Officer
(‘CFO’), the Chief Legal Officer (‘CLO’), the Chief Risk
& Compliance Officer (‘CRCO’). The Head of Internal
Audit is a non-voting member of the Executive
Committee; he reports directly to the Audit & Risk
Committee of the Board, with a ‘dotted line’ to
the CEO.
The Executive Committee functions as a single
body, and the country managers and department
heads report to it directly. The Group’s operations
are standardised, which allows management’s
authority to be decentralised and delegated (within
specified limits) from the Group to each of its
microfinance institutions.
The chart on the previous page sets out a simplified
overview of the Group’s management structure as
well as the Group’s operating structure, which is
based on geographical proximity and associated
cultural similarities and is, therefore, segmented
into four regions: South Asia, South East Asia,
East Africa and West Africa.
The Group’s microfinance institutions operate a
total of 2,145 branches across 13 countries in
South Asia, South East Asia, East Africa and
West Africa. Limited administrative layers exist
throughout each in-country branch network, which
promotes the active participation of all staff, quick
and autonomous decision-making capacity, and the
efficient deployment and monitoring of loans. Each
of the Group’s microfinance institutions has its own
Board of Directors (an ‘MFI Board’) which, in most
countries, includes a number of Independent
Directors, as well as members of the Company’s
senior management, such as the Chief Executive
and/or Chief of Operations. The remaining
Independent Directors often have extensive
experience in the finance/microfinance industry
or at central banks.
Local management and operational structure
Each of the Group’s microfinance institutions also
has a country-level head office from which the
Managing Director works and manages the
microfinance institution, reporting to the local MFI
Board and the Group’s international corporate
headquarters. Reporting to the Managing Director,
the head of operations is also located in the
country head office and oversees the microfinance
institution’s mid-level management. The country
head office also includes common head office
functions, including Finance and Accounts,
Internal Audit, Legal and Compliance, Information
Technology, Human Resources and Risk
Management. Internal Audit reports directly to
the local MFI Board, as well as functionally to
the Head of Group Internal Audit.
Each country’s head office also includes a Fraud and
Misappropriation Prevention Unit, which investigates
unusual branch activity and/or client complaints
through unannounced branch inspections, and
reports to the Managing Director of the microfinance
institution as well as to senior management in the
international corporate headquarters.
The field staff of each MFI includes mid-level
management and branch staff. Mid-level managers,
such as district, regional, and area managers, travel
across branch networks to perform supervisory
functions, as they usually do not have separate
offices. Larger institutions may also have assistant
district managers or deputy heads of operations.
These managers report to their supervisors and the
Managing Director at the country head office, and
are responsible for inspecting branches and
attending client group meetings to ensure effective
operations. At these meetings, they gather client
feedback and follow up on prior complaints. Each
branch is typically staffed by a branch manager,
assistant branch manager, loan officers, and
support staff.
Substantial shareholdings
The table to the right sets out details of the
interests in voting rights of 3% or more notified to
the Company as at 31 December 2024 under the
provisions of the FCA’s Disclosure Guidance and
Transparency Rules. Information provided by the
Company pursuant to the Disclosure Guidance and
Transparency Rules is publicly available via the
regulatory information services and on the
Company’s website.
The table reflects shareholding as of 31 December
2024. Substantial shareholders do not have
different voting rights from other shareholders.
Name of Director
Number
of shares % holding
Catalyst
Microfinance
Investors
1
29,217,826 29.2%
Conifer Capital
Management
2
19,527,159 19.53%
Catalyst Continuity
1
16,806,390 16.81%
Phoenician Capital
2
10,100,000 10.10%
Redwheel
2
4,117,874 4.12%
Renta 4 Gestora 3,367,852 3.37%
1 As on 31 December 2024, Dirk Brouwer holds a 46.01% interest
in the Company through CMIMC, which he ultimately controls.
This interest is held via Catalyst Microfinance Investors (29.2%)
and Catalyst Continuity (16.81%), both also under his
ultimate control.
2 The holdings of Conifer Capital Management, Phoenician Capital
and Redwheel have been built up over the years.
Engagement with shareholders
The Group has an investor relations (‘IR’)
programme to ensure that current and potential
shareholders, as well as financial analysts, are kept
informed of the Group’s performance and have
appropriate access to management to understand
the Company’s business and strategy.
The Board values maintaining good relationships
with shareholders. The Head of IR, reporting to the
CFO, organizes meetings, calls, and presentations
throughout the year. The team regularly collects
investor feedback, which is shared with the Board
and management. The CEO, Head of IR, and CFO
meet with major institutional shareholders, and the
Chair is available to discuss strategy, governance,
and succession planning.
The Senior Independent Director is available for
shareholders if concerns remain after contacting
the Chair or CEO, or if such contact is inappropriate.
Independent Directors are also available
for discussions.
The Board receives regular IR updates from
the Head of IR, including reports on share
performance, register composition, and investor
feedback. Key documents and announcements
are available at asa-international.com/investors.
Stakeholder engagement
Regarding workforce engagement, given the
substantial number of staff primarily located in
branches, the Company appointed the Chair as
designated director. The Chairperson made multiple
visits to the head office and conducted numerous
sessions with staff and their representatives. Refer
to the S-172 statement on pages 13 to 15 for further
details on stakeholder engagement.
The Chair of the Audit and Risk Committee has
regular conversations with the Group Head of
Internal Audit and Group CFO, and the Committee
meets members of the senior management team who
attend every Audit and Risk Committee meeting.
Annual General Meeting
The Board views the AGM as a key opportunity for
shareholders to engage directly, ask questions in
person or in writing, and meet all Directors
and Committee Chairs.
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86 Board of Directors
88 Executive Committee
89 Country Heads
91 Board activities
92 Leadership from the Board
94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
Audit and Risk Committee report summary
In a dynamic regulatory and risk environment,
our focus remains on safeguarding stakeholder
trust through sound governance, transparent
reporting, and a strong risk culture aligned
with our mission to drive
financial inclusion.”
HANNY KEMNA
CHAIR OF THE
AUDIT AND RISK COMMITTEE
Audit and Risk Committee
The Audit and Risk Committee (‘ARC’) plays a critical role in overseeing financial reporting, risk
management, and internal controls. It closely monitors liquidity, regulatory compliance, and audit processes
to ensure the organization’s financial stability. The Committee reviews accounting judgments, external
audit findings, and governance adherence, maintaining transparency and accountability. Additionally,
it provides oversight of internal and external audits, fraud prevention measures, and whistleblowing
mechanisms. By assessing emerging risks, financial viability, and long-term business sustainability,
the ARC helps safeguard the Company’s integrity and resilience.
Key activities in 2024
• Focused on liquidity, inflation impact,
and currency devaluation risks.
• Reviewed financial reporting, internal audit,
and regulatory compliance.
• Assessed credit loss provisions, hyperinflation
accounting, and efficient tax planning.
• Strengthened IT governance, cybersecurity,
and digital transformation initiatives.
• Evaluated governance, risk management,
and key leadership appointments.
Meeting attendance
Member name and role Meetings attended
Hanny Kemna, Chair
1
4/5
Chris Low, NED
2
4/4
Salehuddin Ahmed, NED 4/5
Guy Dawson, NED
3
1/1
Sheila M’Mbijjewe NED 1/1
1 Chair as of 16 December 2024.
2 Chair and member until 16 December 2024.
3 Member as of 16 December 2024.
Key areas of focus for 2025
• Strengthen financial controls, risk
mitigation, and compliance frameworks.
• Enhance IT security, digital banking
infrastructure, and cyber risk defences.
• Monitor liquidity risks, exchange rate
fluctuations, and economic uncertainties.
• Improve tax strategy, regulatory compliance,
and governance adherence.
• Oversee leadership succession planning
and Board effectiveness evaluations.
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86 Board of Directors
88 Executive Committee
89 Country Heads
91 Board activities
92 Leadership from the Board
94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
Audit and Risk Committee report
As Chair of the Audit and Risk Committee,
I am pleased to present the Committee’s
report for the financial year ended
31 December 2024.
Chair’s overview
This report provides an insight into the functioning
of the Committee and the activities undertaken by
it, including an overview of the principal topics
covered at various meetings of the Committee. The
Committee apportions its time between periodic
review of key present and future risks to the Group
and close scrutiny of the financial reporting and
internal controls of the Company.
As in 2023, even this year the Committee spent
substantial time in monitoring the cash and liquidity
situation, evaluating the progress of the digitisation
and digital transformation of the business
operations, the impact of regulatory changes on
the operating environment, and other related
accounting judgements and disclosures. The
Committee also closely monitored recoveries in
India, licensing in Pakistan, funding across the
Group, profitability and forecasts, covenant
breaches and the changing risk environment
including risks posed by inflation and devaluation
of currencies in operating subsidiaries.
The majority of the Committee’s time has been
spent on our principal roles and responsibilities,
which are to:
• Monitor the integrity of the Company’s financial
statements and external financial reporting.
• Review the effectiveness of the Group’s internal
controls.
• Monitor and review the activities and
performance of both the Internal Audit function
and external audit process.
• Monitor the adequacy and effectiveness of the
risk management framework.
• Assess principal and emerging risks and help
to focus the Board’s attention on key risks,
especially in view of inflation and devaluation
of currencies.
• Consider key accounting matters and areas
of judgement and changes.
• Discuss specific matters tabled at the request
of the Committee to allow the Committee to
zoom in on topics of interest or concern.
The full terms of reference of the Committee are
available on the Company’s website (under
Investors/Corporate Governance/Audit and Risk
Committee).
In 2024, the Committee continued to focus on the
internal controls systems and processes and
recovery from the challenges being faced due to
the current economic scenario.
In particular, the Committee reviewed the
provisioning for expected credit losses in line with
IFRS 9 and whether adequate provisions have been
made considering economic challenges faced by
multiple operating subsidiaries. The Committee
reviewed the application of IAS 29 on
Hyperinflation as it was relevant for the second
time for the operations in Ghana and Sierra Leone.
The Committee considered accounting judgements
and the framework established by senior
management. More generally, the Committee also
assessed the impact of the depreciation of the
majority of the Group’s operating currencies on the
financial position of the Group to assess and
calculate the expected credit loss for the Group.
The Committee continued to work with senior
management to further improve the risk-based
internal audit process as well as the reporting of
risk. The Committee will continue to focus its
attention on the key responsibilities listed above,
and the risk control framework, significant
accounting judgements, review of the external
audit scope and fees, review of anti-money
laundering and anti-bribery policies and
whistleblowing arrangements, consideration of the
requirements of the UK Corporate Governance
Code in relation to stakeholder engagement,
long-term viability, risk and going concern. In
particular, the Committee will focus on further
development and oversight of the Internal Audit
function, including IT audits, as well as the
development, use and security of new and future
IT strategies and systems.
Audit Focus Areas for 2024
• Review and Approval Activities: Included
minutes, action taken reports, finance reports,
and updates from EY.
• ECL Provision: Discussions on process
for potential management overlay in the
ECL provision
• Internal Audit & Compliance: Requested a
mini-audit within two years for any audit
outcomes marked as “Needs Improvement.”
• High-Risk Areas: Identified issues in Group HR
and Procurement audits, along with
misappropriation figures in the Philippines.
• Audit & Risk Committee Meetings:
– Reviewed audit opinion from EY for FY 2024,
including going concern, viability, and ECL
assessments.
– Assessed audit reports from EY, risk and
compliance reports, internal audit findings,
GMC and FMPU reports, and whistleblowing
incidents.
– Discussed ASA’s applications for deposit-
taking licenses in Tanzania and Kenya.
– Reviewed EY’s audit control observations
including those concerning the ASA
India-IDFC First Bank dispute.
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85 Chair’s introduction
86 Board of Directors
88 Executive Committee
89 Country Heads
91 Board activities
92 Leadership from the Board
94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
Audit and Risk Committee report (continued)
Audit Priorities for 2025
• Review of Financial Statements:
– Approval of Interim Financial Statements
and potential recommendation to the Board.
– Addressing financial reporting requirements
in hyperinflationary environments.
– Better data flow from the subsidiaries.
• Risk Management & Compliance:
– Continued monitoring of inflation, exchange
rate risks (high-risk), and credit, liquidity,
and growth risks (medium-risk).
– Strengthening controls in response to EY’s
2024 audit observations.
• Whistleblowing & Fraud Prevention:
– Reviewing and acting on whistleblowing
reports.
– Strengthening internal controls to prevent
fraud and misappropriation.
• Internal Audit Oversight:
– Increased focus on branch audits, fraud testing
in Pakistan, and addressing key risk areas.
– Ensuring ongoing internal audit reviews align
with risk and compliance priorities.
• Finance updates, risk reports, and a memo
on whistleblowing incidents.
Membership and meetings
The Audit and Risk Committee, chaired by
Chris Low in 2024, included Hanny Kemna and
Salehuddin Ahmed as members. On 16 December
2024, Hanny Kemna became Chair on an interim
basis, with Sheila M’Mbijjewe (who joined on
17 December 2024) set to take over in due course.
The Committee now comprises Hanny Kemna,
Guy Dawson, Salehuddin Ahmed and
Sheila M’Mbijjewe.
The qualifications of each of the Board members
are outlined in the biographies on page 86-87.
The Board considers that the current members of
the ARC have sufficient skills, qualifications and
experience to discharge their duties in accordance
with the Committee’s terms of reference.
In 2024, the Committee met on five occasions.
Full details of attendance by the Non-Executive
Directors at these meetings are set out in the table
on page 98. In addition to the members of the
Committee, standing invitations to attend meetings
are extended to the CFO, Chief Risk & Compliance
Officer and Chief Legal Officer. All attend the
committee meetings as a matter of course and have
supported and informed the Committee’s
discussions. Invitations to attend are extended to
other members of management as required, so that
they can brief the Committee on specific issues
under review.
The external auditor, Ernst & Young LLP (‘EY’),
attends each meeting, and the Committee Chair
has regular contact with the lead audit partner
throughout the year. The Committee also met with
both internal and external auditors privately
(i.e. without members of management present)
during the year. Since the Committee has
responsibility for both audit and risk monitoring,
this report will address the activities of both
functions during the financial year.
Audit overview
The ARC is responsible for monitoring the integrity
of the Company’s financial statements and
reviewing and reporting to the Board on significant
financial reporting issues and judgements. The
Committee also considers whether the Company
has adopted appropriate accounting policies and
made appropriate estimates and judgements after
taking into account the views of the auditors.
Other than the above, the Committee monitors:
• Compliance with accounting standards and legal
and regulatory requirements.
• The reporting of related party transactions.
• The basis on which the Group is considered
to be a going concern.
• Any material misstatements in the accounts
that are reported by the external auditor.
• Taxation matters.
Audit of 2024 financial year
Reporting by the external auditor
The Committee received detailed reporting from
the external auditor in respect of the final and
half-yearly results. The Committee and the external
auditor discussed the key areas of focus including
the risk drivers, the significant risks being risk of
fraud in revenue recognition, valuation of expected
credit loss provisions, valuation of deferred tax
assets, hyperinflation and going concern.
The Committee reviewed the external auditor’s
opinions, appropriateness of accounting principles
applied to the financial statements and related
disclosures, and management’s report. The
Committee specifically spoke to the external auditor
about going concern and the existence of material
uncertainty, hyperinflation, misappropriation,
revenue recognition and expected credit loss
provisions. The external auditor reported that the
significant audit risks in relation to income
recognition and expected loss provision had been
reported at each stage, and it had not found any
material or reportable differences or fraud after
extensive revenue testing.
The Committee also reviewed the EY external audit
findings and EY Control Observations and
Recommendations Report and the management
response and progress to each observation made
by EY. The Committee had a discussion with
management on the observations including going
concern analysis, assessment of deferred tax
assets, balance sheet and income statement
attestation. The Committee also discussed the
listing requirements to which the Company is
subject to, UK Corporate Governance Rules, and
adherence to planning, timelines and achievable
due dates as a listed company. EY kept the
Committee updated on developments in corporate
governance regulation and practices that were
expected to arise over the next few years, which
may require the Company to produce new types
of documentation, particularly with regard to the
declaration of material controls’ effectiveness.
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86 Board of Directors
88 Executive Committee
89 Country Heads
91 Board activities
92 Leadership from the Board
94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
Audit and Risk Committee report (continued)
Taking into account the external auditor’s
assessment of risk as well as the Committee’s
own understanding of the Group, the Committee
reviewed and, where necessary, challenged
management’s actions, estimates and judgements
in the preparation of the financial statements.
As part of its role in assessing the integrity of the
Group’s external reporting, the Committee has
continued to pay particular attention to the key
areas of management judgement underpinning the
financial statements. The Committee reviewed the
significant accounting judgements made during the
year, the risks to which the Company was exposed
and the systems in place to mitigate or manage
them and the overall system of internal controls
within the Company.
The Committee reviewed the analysis of the going
concern emphasis of matter in light of the situation
in India and the waivers received in respect of the
Group’s covenant breaches on its outstanding
borrowings, and concluded that it remained
appropriate to prepare accounts on a going
concern basis.
The Committee closely monitored the Group’s
assets and liabilities as established by the Asset
and Liability Committee (‘ALCO’), chaired by the
Group CFO.
The Group’s liquidity with unrestricted cash and
cash equivalents was approximately USD 50.2
million at year-end 2024. The Company secured
approximately USD 193.8 million of new loans
from local and international lenders in 2024.
External audit
The Committee assessed the external audit report
and audit plan for 2024. The purpose of the report
was to provide the Committee with an opportunity
to review the proposed audit scope and approach
for the 2024 audit of ASA International Group plc.
The report aimed to ensure that the audit was
aligned with the Committee’s quality and service
expectations, summarising the assessment of
scope, materiality, key audit matters, and other
items impacting the financial results of the Group.
The auditor identified the following significant risks
inherent to the operations of the Group’s
subsidiaries, for the 2024 audit:
Expected credit loss (‘ECL’) provisions: This relates
to the appropriateness of the ECL model and
methodology, ongoing global economic challenges
impacting the recoverability of loans, and forward-
looking assumptions on overall credit risk.
The audit will assess the assumptions and complex
judgements applied, which give rise to the risk
of management override of controls.
Risk of fraud in revenue recognition through the
incorrect recording of revenue arising from
fictitious loans and advances to customers:
This involves the potential for misstatement of
income due to fraudulently recorded interest
income from loans to fictitious borrowers. Under
ISA 240.32, the risk of management override of
controls is considered a fraud risk on all audits.
ISA 330 states that auditors are required to
determine an overall response to the risk of fraud,
in addition to the risk at an assertion level.
Going concern: This involves debt covenant
breaches and the waivers obtained not covering the
going concern horizon, as well as judgement in the
forecast of profits, cash flows and debt breaches.
Other key areas of focus include capitalisation
of software development costs, hyperinflation
accounting, valuation of deferred tax assets,
foreign currency translation, compliance with
laws and regulations, IT systems migration,
and retirement benefit plans.
The Committee concluded that EY remains
independent and that its audit is effective. EY
confirmed that it had carefully monitored the
provision of non-audit services to EY has acted as
the Group’s external audit firm since appointment
by the Board in 2018. The Committee approved
EY’s non-audit services for 2024, including the
half-year 2024 review for ASAI Group plc, CAR
certification, interim and final dividend certification
for Pakistan. The Group’s policy for auditor rotation
and audit tender follows regulatory requirements,
and the audit firm will be rotated after no more
than 20 years, with an audit tender to be held after
no more than ten years.
Other financial reporting and financial update
Interim announcement
The Committee reviewed the draft announcement
and interim financial statements.
Financial update
The Committee reviewed financial updates from
senior management and discussed various items
including PAR>30 ratio, debt-equity ratios, liquidity,
cost of funding, impact of forex on cost base, other
operating income, salary inflation, currency
depreciation in Asian and African countries, the
financial timetable, preparations for the half-year
review and year-end audit, cost to income ratio and
increase in operating costs, write-off and recovery
of debts, tax expenses, expected credit loss, and
market expectations.
The Committee requested and received
presentations from management explaining the key
issues raised by analysts, investors and press.
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86 Board of Directors
88 Executive Committee
89 Country Heads
91 Board activities
92 Leadership from the Board
94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
Audit and Risk Committee report (continued)
Policy oversight and review
Whistleblowing
The Committee and the Group place a high priority
on all employees understanding the process for
reporting concerns, so that they all feel able to
speak out when appropriate. In respect of all
operating subsidiaries, all concerns are reported
directly to the head of the ARC of that country;
and in respect of all headquarters/holding company
staff (in Dhaka and the Netherlands) any instances
are directed to me as the Chair of the Group ARC.
The Chair passes the concern(s) to the Head of
Internal Audit and discusses them with the Board;
in this way we ensure that arrangements are in
place for the proportionate and independent
investigation of such matters and for follow-up
action. In 2024, four whistleblowing incidents were
reported across the Group. Each was investigated
and submitted to the Whistleblowing Officer, with
subsequent decisions made by the disciplinary
committee. To enhance the framework, the
whistleblowing policy and training materials are
currently being revised.
Other policies
The Board regularly reviews key policies, including
anti-bribery, anti-money laundering (‘AML’), and
transfer pricing. The Committee confirmed key
manuals are in place and tasked the Compliance
Officer with refining the compliance framework,
addressing gaps, updating manuals, and prioritizing
training. A zero-tolerance stance on sexual
harassment and racial discrimination was
reaffirmed. The Grievance Mitigation Policy
supports accountability, with 22 appeals and ten
direct complaints in 2024 resulting in corrective
actions and ongoing preventive training.
Internal Audit
During the year, the Committee held several
discussions with the Head of Internal Audit to
ensure that they had enough resources and regular
reports continue to be delivered to the Committee.
The Internal Audit team was provided online access
to the data of subsidiaries, although all information
required for auditing transactions was not online.
The Committee noted that internal audits
Committee observed that the 2024 internal audit
schedule was largely met, with 3,384 branch audits
and 32 process and control audits, including IT
audits at the group and entity levels, completed on
time. Additionally, the Internal Audit Software was
successfully implemented and launched across
12 entities as planned for 2024.
At each meeting the Committee received a report
from the Head of Group Internal Audit summarising
audits completed as well as monitoring progress on
agreed actions from previous audits.
Internal Audit highlighted key concerns, including
deficiencies in cash and bank management,
financial reporting gaps, loan recovery issues,
information security risks, and due diligence
shortcomings in loan disbursement and collection.
It also addressed HR, compliance, and health and
safety matters. Detected fraud incidents were
promptly escalated to management. The
Committee worked to ensure that the management
would resolve issues raised by Internal Audit within
the agreed time.
The Committee had discussions with management
to ensure adequate staffing of the Internal Audit
department and had several discussions on the
reasons for staff turnover. The Committee
continues to keep the level of resources of the
Internal Audit team under review and holds
meetings with the Head of Group Internal Audit
from time to time. The Committee reviewed and
approved the risk-based branch audit plan for
2025, which includes a 15% increase in branch
audit frequency and a 30% rise in process audits
over 2024. The Internal Audit budget was also
approved, and the Chair stressed the need to fill
key audit vacancies across countries.
IT organisation and digital strategy
The Committee spent considerable time on the
IT organisation and the digital strategy. The
Committee continued to monitor the digitisation
process and required the Company to prepare
back-up plans in case of cyber-attacks and the
disaster recovery arrangements in such an event.
This process has been assisted by the appointment
of a Chief Information Security Officer who, with
his team, is conducting a programme of
vulnerability and penetration testing and setting up
of the Security Operations Center (‘SOC’) to
increase our cyber resilience.
The Committee also monitored the progress of
the digital strategy of the Group, including the
development of the Digital Financial Services (‘DFS’)
mobile app and its rollout, as well as the
implementation of the Core Banking System –
Temenos Transact in Ghana, Pakistan and Tanzania.
The Company will continue to run its current AMBS
systems in all the markets where Temenos Transact
is not live yet. The deployment in other markets is
expected to be a multi-year project.
The IT technology strategy is constantly under
review by the Board and this Committee in order
to ensure that we are keeping pace with, and
responding to, the latest industry developments,
especially in digital finance. IT capability will
continue to be assessed in the context of risk
appetite, being part of the Company’s operational
risk. The Committee considered the effectiveness
of the internal control systems and believes that
they are adequate. The Committee also discussed
the preparedness of the Company to deal with
cyber-attacks and disaster recovery procedures.
The Committee also discussed the
recommendations by the external auditor relating
to IT. EY submitted its report on the IT Audit
pursuant to revised International Standard on
Auditing (UK) 315, Identifying and Assessing the
Risks of Material Misstatement pursuant to which
EY performed new and additional procedures to
understand the Group’s use of IT, IT processes
related to IT applications relevant to audit used in
different accounting processes, and where relevant,
IT general controls that address IT risks in the IT
processes. EY noted overall improvements in IT
control design and implementation since the last
IT audit in 2018.
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85 Chair’s introduction
86 Board of Directors
88 Executive Committee
89 Country Heads
91 Board activities
92 Leadership from the Board
94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
Audit and Risk Committee report (continued)
Risk management overview
As part of its risk management function, one of the
Audit and Risk Committee’s principal roles and
responsibilities is to support the Board in its
oversight of risk management across the Group.
The identification, management and mitigation of
risk are fundamental to the success of the Group.
The ASA Model of Microfinance has proved to be
robust in managing operational risk, but we aim to
continue to retain and recruit the skills and talents
needed to meet the challenges we face in our various
operating markets and continuously review the
adequacy of procedures and operational controls.
The reporting, based on the ‘three lines of defence’
model, allows us to ensure that principal risks are
identified and debated and that senior
management’s plans for risk mitigation are well
understood and appropriately resourced. The
Committee requires senior management to focus,
as far as its reports to the Committee and Board
are concerned, on presenting key risks. Senior
management provides risk reports to the
Committee on a quarterly basis. These reports
contain a summary of the key risks and senior
management’s risk assessment along with any
mitigation actions where relevant.
The management team also provides a full
summary of its risk appetite in relation to its key
performance indicators.
This risk reporting process as well as the regular
reviews by the Committee were in place and
functioning effectively throughout 2024.
Risk management: activity in financial
year 2024
The Risk function continued to evolve in 2024.
We continue to work with senior management to
ensure our three lines of defence model is fully
embedded across our Group and that the
governance and reporting structures continue to
provide ever more effective oversight of our risk
management. These actions have continued to
improve the flow of management information to
the Committee, increasing the effectiveness of its
challenge and oversight and enhancing visibility on
risk and compliance issues identified at all levels
across the Group.
The Committee carefully assessed the impact on
portfolio quality, collection efficiency, bad debt
write-off and recoveries, and PAR>30, especially in
India, Sri Lanka, the Philippines, Nigeria, Sierra Leone,
and Rwanda. The Committee maintained its focus on
the Group’s policies, programmes and practices for
strengthening and prioritising our ability to test,
detect, resolve and recover from unforeseen
operational disruptions in our key markets.
The risk taxonomy of the Group had been reviewed
and updated during the year to achieve a
comprehensive coverage of risks. The Committee
reviewed the risk management reports presented by
senior management and the actions being taken to
manage or mitigate the key risks. The Committee
was actively involved in improving risk reporting by
management. The Committee noted that inflation
risk and exchange rate risk were key risks during
2024, primarily attributed to elevated rates observed
in a number of countries. Data migration risk
remains medium due to a number of ongoing
projects. However, the Group has enhanced IT
capabilities and has seen successful advancement
in the ongoing projects. It also noted that tax
compliance was a high risk during 2024 due to high
tax claims in a number of jurisdictions.
It further noted that liquidity risk and human
resource risk were medium; and also discussed the
climate risk reports including risk of flooding at
head office locations and important health and
safety measures.
The members discussed rising tax risks and
regulatory challenges to transfer pricing charges.
Human resources, Health and safety, liquidity and
IT (including data protection) risks were standing
items for discussion at meetings held in 2023 and
continued to be discussed in 2024. Assessment of
emerging risks (required under the 2018 Code)
were a standing agenda item for the Committee’s
discussions in 2024.
We continue to encourage the Company to engage
actively with regulators and industry bodies to
ensure that our compliance framework remains
appropriate and relevant for all of our businesses.
The Legal and Compliance team works closely
with colleagues in different countries, providing
regulatory advice, as well as shaping policies,
delivering training and conducting assurance
reviews. The Group Compliance Officer was also
appointed as the dedicated AML officer.
Looking ahead to 2025: risk priorities
Key risk priorities for the coming year include:
• Stabilising and improving the size and quality
of the loan portfolio.
• Monitoring liquidity risk in light of delays in
receiving dividends from subsidiaries and in the
light of the significant currency devaluation to
the USD in our largest operations.
• Effective management and reporting of key
risks, specifically foreign exchange exposure,
regulatory risks, as well as any other material
developing concerns.
• Advancement and continuous assessment of the
Group’s IT infrastructure, including deployment
of the Temenos Transact Core Banking System
in selected markets and digital financial services,
as well as maintaining and improving AMBS to
meet new requirements for upgrades in the
markets where it is still used.
• Evaluate the adequacy of human resources and
ensure the appointment of duly qualified and
experienced professionals in key markets.
• Reduce the overall tax burden by optimizing
transfer pricing strategies.
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85 Chair’s introduction
86 Board of Directors
88 Executive Committee
89 Country Heads
91 Board activities
92 Leadership from the Board
94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
Audit and Risk Committee report (continued)
Committee effectiveness
A formal evaluation of the Committee’s
performance took place as part of the wider Board
evaluation of performance in 2024 and will be
undertaken again at the end of 2025. The
Committee considers that it possesses the right
skills, and has access to the right resources, to
enable it to carry out its duties, and that it has
continued to perform effectively. It continues to
have good relationships with the auditors, who
provide helpful and thorough reports and advice
at meetings. The Committee Chair is in frequent
contact with the senior management of the Group
to discuss business performance, emerging risks,
and the competitive environment.
The Head of Internal Audit continues to report
directly to the Committee and meet the Committee
Chair regularly outside the Committee meetings
cycle; in a welcome development, he now also
attends meetings of the Executive Committee,
receiving a higher internal profile and a more visible
degree of management support.
Looking ahead, the Committee considers that its
required mix of skills will include more banking
experience, as an increasing number of deposit-
taking licences are obtained by the Group. The risk
management framework, including emerging risks,
requires an increasing amount of the Committee’s
attention, and training on accounting standards,
etc. will also need to be kept up to date.
Monitoring liquidity plans
The Committee considered further reports from
management on the Group’s cash situation, which
continued to be affected by delays in obtaining
dividends from the operating subsidiaries due to
central bank intervention, and by devaluation itself.
Various potential scenarios for 2024 were
discussed and the Committee has requested that
senior management keep it informed of any
developments in the liquidity situation.
Other matters
Other, more routine, matters discussed included:
• Legal and regulatory update reports were
routinely received and reviewed by the
Committee.
Viability statement
During the year, the ARC has considered a wide
range of information relating to present and future
projections of profitability, liquidity, currency
devaluations, inflations and operating costs.
These considerations relate to the global economic
uncertainty and its impact on Company’s
operations, as well as considering potential impacts
from other top and emerging risks, and the related
impact on profitability, capital and liquidity.
In accordance with the UK Corporate Governance
Code, the Directors carried out a robust
assessment of the principal risks of the Group.
In accordance with provision as set out in the
Guidance on Board Effectiveness published
alongside the UK Corporate Governance Code, the
Board confirms that it has a reasonable expectation
that the Group will continue to operate and meet
its liabilities, as they fall due, for the three-year
period up to 2027.
The Directors’ assessment has been made with
reference to:
• The Group’s current position and prospects –
please see the Financial review on pages 23
to 37;
• The Group’s business model and strategy –
please see our business model, our strategy and
Key Performance Indicators on pages 11, 16 to
18 and 21-22;
• The Group’s recent cash position, including
access to funding from local and international
sources on pages 23 to 37;
• The Board’s risk appetite, and the robust
assessment of the Group’s principal risks and
how these are managed on pages 38 to 48;
• The material uncertainty in relation to going
concern as detailed in page 128 to 130 of the
financial statements; and
• Risk management approach on pages 38 and 48.
Finally, the Directors reviewed the viability
scenarios as well as the Group’s strategy and
five-year business plan on an annual basis.
The viability scenarios sets forth the Group’s
monthly projections of profitability, cash flows,
capital requirements and resources and other key
financial and regulatory ratios for the period until
December 2026 and annual projections for the
period 2027–2029.
Hanny Kemna
Chair of the Audit and Risk Committee
23 April 2025
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Governance
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85 Chair’s introduction
86 Board of Directors
88 Executive Committee
89 Country Heads
91 Board activities
92 Leadership from the Board
94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
Nomination Committee report summary
This year’s changes in leadership mark an important step
in our journey to sustainable growth – strengthening
governance, renewing our strategic focus, and enhancing
our commitment to responsible and inclusive growth.”
CHRIS LOW
CHAIR OF THE
NOMINATION COMMITTEE
Nomination Committee
The Nomination Committee oversees Board and executive succession planning, ensuring a strong
leadership pipeline. It is responsible for promoting diversity, equity, and inclusion across senior
management. The Committee also manages Board composition, appointments, and governance principles
while reviewing and recommending leadership changes and succession strategies.
Key activities in 2024
• Appointed Interim CEO, Chairperson,
and key executive roles.
• Strengthened Board diversity
and succession planning.
• Reviewed executive salaries
and leadership training.
• Launched initiatives for gender diversity
and deployment of expatriate managers
within the Group
Meeting attendance
Member name and role Meetings attended
Chris Low, Chair
1
7/7
Hanny Kemna, NED 7/7
Salehuddin Ahmed, NED 5/7
Guy Dawson, NED
2
7/7
1 Chair as of 16 December 2024.
2 Chair until 16 December 2024.
Key areas of focus for 2025
• Oversee Non-Executive Director
succession planning.
• Enhance leadership development
and performance evaluations.
• Strengthen diversity and inclusion across
all levels.
• Monitor executive committee composition
and governance improvements.
Staff retention
75%
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Governance
Strategic report
Corporate governance report
85 Chair’s introduction
86 Board of Directors
88 Executive Committee
89 Country Heads
91 Board activities
92 Leadership from the Board
94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
This is the 7th annual report on the
activities of the Nomination Committee
following the listing of the Company.
This report gives details of the activities of the
Nomination Committee in connection with Board
and executive succession planning, and progress
towards goals for diversity, equity and inclusion.
The Committee is responsible for succession
planning for the Board, maintaining a pipeline of
strong candidates for potential nomination as
Non-Executive Directors and Executive Directors,
while also ensuring robust succession planning for
the Executive Committee.
Rob Keijsers, who was appointed as CEO on
1 April 2025, acted as interim CEO during the
period 1 November 2024 until 1 April 2025.
During this period Chris Low acted as Executive
Chairperson and became Non-Executive
Chairperson as of 1 April 2025. These changes
followed the stepping down of Karin Kersten as
CEO on 1 November 2024.
An overview of the Committee’s roles and
responsibilities, and its key activities during
the year, is set out in the report below.
Key activities in the 2024 financial year
During the year the Committee discussed:
• Executive management succession planning,
including the search process for the
appointment of a CEO following the stepping
down of Karin Kersten as CEO on
1 November 2024. This was conducted by
the recruitment agency Korn Ferry, which
culminated in the appointment of Rob Keijsers
as CEO on 1 April 2025.
• Preparations for the changes to the Executive
Committee including recruitment of a Chief Risk
and Compliance Officer. The Committee also
reviewed the composition of the Executive
Committee headed by the CEO.
• The onboarding of new Independent Directors,
to eventually replace retiring members, led to
the appointment of Sheila M’Mbijjewe in
December 2024.
• The assessment of senior executives, including
their skill sets, knowledge and experience, in
order to ensure that an appropriate balance of
such qualities has been maintained.
• Following a review of senior management
performance within the Group, the appointment
of senior leadership including CEOs and CFOs
in the operating subsidiaries and regular updates
on their performance.
• The adoption of a set of governance principles
for the boards at subsidiary level.
• Gender diversity targets, and increasing the
proportion of female staff at the head office
and country levels, including in senior
management at the country level.
Nomination Committee report
Committee roles and responsibilities
The Committee’s key roles and responsibilities are:
• Regularly reviewing the size, structure and
composition of the Board, and making
recommendations to the Board with regard
to any changes.
• Considering the leadership needs of the Group,
including succession planning for Directors and
for senior executives.
• Identifying and recommending candidates
to fill Board vacancies when they arise,
for the Board’s approval.
• Making recommendations to the Board
concerning the formulation of plans for
succession for both Executive and Non-
Executive Directors and suitable candidates
for the roles of Senior Independent Director
and Chairs of Board Committees.
• Considering the appointment or retirement
of any Directors.
• Reviewing the continued independence of
the Non-Executive Directors.
• Evaluating the Board’s balance of skills,
knowledge, experience and diversity.
• Preparing a description of the role and
responsibilities required for a particular
appointment.
• Being actively involved in the appointment
process for the Chairperson of the Board.
• Reviewing the results of the annual Board
performance evaluation process that relate
to the composition of the Board.
• Reviewing annually the time commitment
required from Non-Executive Directors.
• Monitoring the implementation of Diversity,
Equity and Inclusion policies and initiatives.
The Committee’s roles and responsibilities are set
out in the terms of reference and are available on
the website of the Company.
Membership and meetings
The Nomination Committee is chaired by myself,
and the other members are Guy Dawson, Hanny
Kemna and Salehuddin Ahmed. The composition of
the Committee satisfies the relevant requirements
of the UK Corporate Governance Code (‘the Code’).
Guy Dawson was the Chair until 16 December
2024 when I took over this role.
Other individuals, such as the Group HR Director
and external professional advisers, may be invited
to attend all or part of any meeting, as and when
appropriate and necessary. The Committee met
seven times during the year. The details of
members’ attendance are set out on page 105.
Changes to the Board
Please refer to page 91.
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86 Board of Directors
88 Executive Committee
89 Country Heads
91 Board activities
92 Leadership from the Board
94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
Nomination Committee report (continued)
Directors’ skill sets
Chris Low was I&M Group Plc’s Regional Director
for its East Africa businesses. He advises several
FinTech start-ups and sits on the Boards of United
Bank for Africa (UK) Ltd, Ed Partners Africa
Holdings Ltd, the Scottish African Business
Association, and is a member of the Investment
Committee of Zephyr Acorn Venture Fund, an
investor in early-stage impact companies. With
over 30 years in international financial services, risk
management and digital transformation, Mr Low
has specialised in emerging markets, working
across Africa, Asia and the Middle East.
Rob Keijsers has over 15 years’ experience of
banking, most recently at a senior level in ABN
AMRO Bank where he gained experience in the
cross section of business operations and IT in a
multinational banking environment, specifically in
large-scale digital transformations, post-merger
and agile integrations, and setting up greenfield
operations. The Committee also considered and
reaffirmed the skill sets and experience of the
Company’s Non-Executive Directors, including
their extensive experience within financial services.
Guy Dawson has extensive business and financial
experience, including as a Non-Executive Director,
as well as Vice-Chairperson and Chairperson roles
at Nomura International plc and Merrill Lynch.
Hanny Kemna brings over 20 years of experience
as Global Lead Partner of Operations and IT at
Ernst & Young, as well as broad experience as a
supervisory board member of a variety of
financial institutions.
Salehuddin Ahmed is Professor at the Business
School of BRAC University, Dhaka, Bangladesh.
Mr Ahmed is also on advisory bodies of several
government and non-government agencies in
Bangladesh and a member of the board of trustees
of two universities and a college, and was the
Governor of the Bangladesh Bank (Central Bank)
between 2005 and 2009.
Sheila M’Mbijjewe is a UK- and Kenyan-qualified
accountant who retired in June 2023 as the first
female Deputy Governor of the Central Bank of
Kenya after completing her second four-year term.
As a key member of the central bank leadership,
she helped oversee Kenya’s financial system and
promoted pan-African financial stability, building
extensive knowledge and contacts across the
continent. Before joining the Central Bank of
Kenya, she was Executive Director and Head of
Consumer Banking, East Africa, at Standard
Chartered Bank.
Dirk Brouwer is an experienced investment banker,
having held senior roles in PaineWebber and
Merrill Lynch as well as over 16 years of experience
in microfinance as Director of ASA International.
He was a director of ASA International from the
incorporation of the Company in 2007 until 2024
and acted as CEO from 2018 to 2023.
Further information on the background and
experience of each of the Directors can be found
in their biographies on page 86-87.
Succession planning – Board and
senior management
The Committee manages Board and senior
management succession under a structured,
proactive methodology. The Committee discussed
and agreed on the appointment of a new CEO and
Non-Executive Director. Following evaluations of
the candidates, the Committee recommended the
appointment of Sheila M’Mbijjewe as Independent
Director, whose appointment was confirmed on
17 December 2024.
The Board appointed Rob Keijsers as interim CEO
on 1 November 2024, following Karin Kersten’s
resignation. After an independent selection process,
managed by the Committee and involving interviews
with multiple candidates, he was confirmed as CEO
on 1 April 2025. Chris Low acted as Executive
Chairperson until formal appointment of the CEO.
The Committee supported the senior management in
the appointment of CEOs and CFOs in the different
countries as part of a succession plan designed to
re-invigorate all local management teams. Emphasis
was placed on hiring financial professionals with
a strong banking or digital financial services
background who had demonstrated that they
were drivers for growth in previous roles.
In 2024, the Committee reviewed the succession
plans for senior management across the Group,
in the light of the evolving business outlook and
the strategies adopted by the Company.
The Committee also reviewed progress on
leadership training for potential successors to the
most senior roles in the Company and will actively
discuss and monitor progress with the senior
management succession plan regularly in 2024.
Diversity
The Committee fully supports the policy of
increasing diversity at each level of the Group,
and it regularly reviews gender diversity data in
particular (ethnic diversity presents less of a
challenge, thanks to the Group’s wide geographical
spread of operations). The Committee considers
that the Board remains diverse in the broadest
sense, drawing on the knowledge, skills and
experience of Directors from a range of
professional and cultural backgrounds. Currently
two of the Company’s seven Directors are women
and we intend, subject to the need for all
appointments to be made on merit against
objective criteria, to increase female Board
representation still further. At the operational level,
too, the representation of women is higher than
before. The Group places a high priority on making
ASA International appeal to a diverse population,
and its commitment to equal, respectful and
dignified treatment throughout recruitment
processes and through all stages of the employee
cycle is underpinned by the Group’s Non-
Discrimination Policy, as referenced below.
The Committee discussed the increasing
importance of gender, national and cultural
diversity. Under the direction of the new Diversity
Equity, and Inclusion (‘DEI’) Committee chaired by
the CEO, the Company continues to focus on
appointing more women in senior management
roles, training female staff for leadership roles at
the entity level and stepping up the hiring of
women across the board; and the country
managements are now working towards firm
targets for increasing the proportion of female
staff. Progress on this front, which varies according
to local cultural norms, is tracked by
the Committee.
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89 Country Heads
91 Board activities
92 Leadership from the Board
94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
Numeric data – UK Listing Rule 9.8.6 (10)
Number
of Board
directors
Percentage
of the Board
Number of
senior positions
on the Board
(CEO and Chair)
Number
in executive
management
Percentage
of executive
management
Sex
Men 5 71% 2 5 100%
Women 2 29% 0 0 0%
Other Categories 0 0% 0 0 0%
Not specified/Prefer not to say 0 0% 0 0 0%
Ethnicity
White British or other White
(including minority-white groups) 5 71% 2 1 20%
Mixed/Multiple ethnic groups 0 0% 0 0 0%
Asian/Asian British 1 14% 0 3 60%
Black/African/Caribbean/Black British 1 14% 0 0 0%
Other ethnic group including Arab 0 0% 0 0 0%
Not specified/prefer not to say 0 0% 0 1 20%
Compliance – UK Listing Rule 9.8.6 (9)
UK Listing Rules Requirements Outcome ASA International Plc position as at 31 December 2024
At least 40% of Board directors
are women
Target not met 29% of the Board directors are women. This matter
will be taken into account when a new director is
considered.
At least one senior Board
position held by a woman
Target met There are two female directors, one of whom is also
a senior independent director.
At least one Board director from
a minority ethnic background
Target met Two Board directors are from a minority ethnic
background.
1 All data as at 31 December 2024 (the reference date).
2 Data was collected via self-reporting methods, via an email data collection exercise (with options aligned to the categories specified
in the UK Listing Rules).
3 The Group CEO is a member of both the Board and executive management and so is counted in both groups in the above table.
4 Changes since the reference date: Ms. Grace Thiongo joined the Executive Committee on 10 March 2025. Her presence has an impact
on the numbers and percentages of the executive management.
5 Per definition within the Listing Rules, executive management within ASA International is the Group Executive Committee.
Nomination Committee report (continued)
The key ratio of female to male employees is
increasing faster in some countries than in others, and
therefore ‘softer’ targets, such as training and creating
a more female-friendly working environment, are now
also being implemented, as we work towards
achieving our aim of having a workforce that reflects
more closely our mostly female client base. Read
about DEI efforts on page 60.
For compliance with UK Listing Rule 9.8.6 (10) and
(9), the following disclosure to the right is provided.
Non-Discrimination Policy
Unfair discrimination in any form is not acceptable.
Senior management and employees are expected to
ensure that a fair and sympathetic work environment
exists for all employees, irrespective of marital
status, religion, disability, sexuality, gender, racial or
ethnic background. This policy of equal opportunities
and diversity applies to recruitment, remuneration,
training, staff development, promotion, discipline,
and all other aspects of employment. The policy also
applies to volunteers, interns, current or prospective
clients, suppliers or beneficiaries, and all others
outside ASA International with whom the Company
or its employees do business.
More detail on the Group’s approach to diversity
can be found in the ESG report on page 60.
Insurance
The Company renewed its D&O insurance.
Reappointment of Directors
Prior to the Company’s AGM each year, the
Committee considers and makes recommendations
to the Board concerning the reappointment of the
Directors, having regard to their performance and
ability to continue to contribute to the Board.
The Board has concluded that the Independent
Non-Executive Directors remain independent and
continue to make a significant contribution to the
Board and its Committees.
Following this year’s review in advance of the 2025
AGM, the Committee recommended to the Board
that all serving Directors (other than Salehuddin
Ahmed who will be retiring at the 2025 AGM) be
recommended to the shareholders for re-election
at the AGM.
Committee effectiveness
The annual evaluation of the Committee’s
effectiveness has been undertaken in respect
of 2024. The Committee continued to function
well during 2024, with succession planning and
succession management as the main focus of
attention against a background of senior
management restructuring. Senior management is
appreciative of the support given by the Committee
and especially its Chair at that time. For further
information, see ‘Board performance evaluation’
on page 95.
In 2025, the Committee will focus its attention
once again on succession among the Non-executive
Directors, taking into account as always the Board’s
and Committees’ skills and balance requirements.
The Committee considers that it has access to
sufficient resources to enable it to carry out
its duties.
Chris Low
Chair of the Nomination Committee
23 April 2025
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89 Country Heads
91 Board activities
92 Leadership from the Board
94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
Remuneration Committee report summary
Remuneration Policy
The Remuneration Policy, last approved in 2023 for a three-year period, will be revised and resubmitted
at the 2025 AGM due to proposed updates on variable pay. In 2024, senior management focused on
introducing principles for performance-based pay, talent development, updated hiring criteria,
remuneration practices, and leadership culture. Staff retention remained strong at 75%.
The Committee remains committed
to ensuring that remuneration supports
our strategic priorities, reinforces
accountability, and is aligned with
shareholder expectations.”
HANNY KEMNA
CHAIR OF THE
REMUNERATION COMMITTEE
Meeting attendance
Member name and role Meetings Attended
Hanny Kemna, Chair 6/6
Salehuddin Ahmed, NED 4/6
Sheila M’Mbijjewe, NED
1
0/0
Guy Dawson, NED
2
1/1
Chris Low, NED
3
4/4
1 Member as of 17 December 2024.
2 Member as of 16 December 2024.
3 Member until 16 December 2024.
Key activities in 2024
The Committee met six times and:
• Reviewed salary adjustments for key employees
to align with inflation and market rates.
• Benchmarked executive salaries with an
independent review by Willis Towers Watson.
• Oversaw the introduction of performance-
based pay on a trial basis in few countries.
• Considered proposals for a Group-wide
performance management system.
• Reviewed Executive Committee composition
and pay structure.
• Considered a limited LTIP award for key
executives and senior staff.
Key areas of focus for 2025
• Oversee LTIP awards under the stock
option scheme.
• Benchmark salaries for the Executive
Committee and key head office roles.
• Implement a staff performance evaluation
system aligned with business needs.
• Ensure competitive rewards for key staff
across the Group.
• Grant stock options to the CEO and key
senior managers, with terms similar to past
years, pending finalization.
• Revise the Remuneration Policy.
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88 Executive Committee
89 Country Heads
91 Board activities
92 Leadership from the Board
94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
Remuneration Committee report
Annual statement from the Remuneration
Committee Chair
On behalf of the Remuneration
Committee, I am pleased to present
the report on Directors’ remuneration
for the 2024 financial year.
Remuneration Policy
The Remuneration Policy set out in this report was
last approved by the shareholders at the 2023
AGM, and applies to Board remuneration for three
years from the date of approval. As the Board has
proposed certain changes to the Remuneration
Policy as set forth in this report, the policy will be
presented for approval at the 2025 AGM.
How the Group performed
In 2024, the senior management focused on
introducing principles for performance based pay
for senior roles and nurturing talent across the
Group, qualifications for new hires, updated
remuneration policies and a focus on culture and
leadership development. Staff retention continued
to be strong at 75%.
Key activities in the 2024 financial year
During the year the Committee met on six
occasions and:
• Reviewed certain salary adjustment to key
employees (to adjust for inflation and markets
rates) and discussed and agreed on the
introduction of performance based on a trial basis.
• Discussed the development of a Group-wide
performance management and evaluation
system for staff.
• Reviewed the salaries of key executives against
a peer group benchmark assessment (conducted
by the independent consultants Willis Towers
Watson), following changes in executive roles
and responsibilities during the year.
• Discussed and agreed on a settlement
agreement for Karin Kersten after her stepping
down as CEO on 1 November 2024.
• Recommended to the Board for approval of a
salary increases for the CEO. This included the
new salary of Rob Keijsers when he stepped up
as Interim CEO on 1 November 2024.
• Discussed the composition of the Executive
Committee and pay structure for key members.
• Considered a limited Long-Term Incentive Plan
(‘LTIP’) for selected group of Executive
Committee members and key senior staff and
reviewed the scope of the awards in 2024.
• Discussed a policy for the more effective
deployment of expatriate staff.
• Reviewed eligibility of pension policy for all
group head office staff.
• Discussed the pilot project for variable pay
to be tested in Nigeria and Uganda.
Priorities for 2025
• To continue to oversee the making of awards
under the stock option scheme.
• To continue the practice of commissioning
independent benchmark reports on the salaries
for the Executive Committee members and key
head office roles.
• To oversee the development and
implementation of a staff performance
management and evaluation system that is
supportive of the current business model
while also being geared to the requirements
of the future.
• To ensure that key staff across the Group
continue to be rewarded appropriately.
• The Company intends to grant options to the
CEO and key senior managers in 2025 but the
basis for grant and the timing has not yet been
determined. Such options are expected to be
exercisable on substantially the same terms as
those granted in 2022, 2023 and 2024.
• Update the Remuneration Policy.
Remuneration in 2024
ASA International has a long-established business
model, and its human resources policies had
traditionally been tailored to this model including
its standardised remuneration policies. In 2024 the
Company decided to steer towards a more broader
performance-based Remuneration Policy across
the Group which it will gradually introduce. In 2024
it ran a few trials on performance-based pay which
will carry on in 2025.
Rob Keijser’s salary increased to USD 350,000
when he was appointed Interim CEO. No other
changes were made to Executive Directors’
remuneration, except for a mid-year salary
adjustment for the former CEO, in line with a prior
understanding with the Board.
Employee base salaries are subject to an annual
cost of living increase: average total compensation
for employees of the Group increased by 0.3%
in 2024.
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89 Country Heads
91 Board activities
92 Leadership from the Board
94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
Remuneration Committee report (continued)
1. Remuneration Committee roles
and responsibilities
The Remuneration Committee assists the Board
in determining its responsibilities in relation to
remuneration. The Committee makes
recommendations to the Board on executive
remuneration, setting the overarching principles,
parameters and governance framework of the
Group’s Remuneration Policy and determining the
individual remuneration and benefits package of
each of the Company’s Executive Directors (‘EDs’).
The Committee has the following key objectives:
• Establish and maintain a competitive
remuneration package to attract, motivate and
retain high-calibre EDs and senior management
across the Group.
• Promote the achievement of the Group’s annual
plans and strategic objectives by providing an
employee remuneration and benefits package
that contains appropriately motivating targets
that are consistent with the Group’s risk appetite.
• Align senior executives’ remuneration with the
interests of shareholders.
The Remuneration Committee also ensures
compliance with the Code in relation to
remuneration. The Committee’s main
responsibilities are to:
• Review and determine the total remuneration
packages of the CEO and other senior executives
in consultation with the Chairperson (and CEO)
and within the terms of the agreed policy.
• Approve the design and targets of any
performance-related pay schemes operated
by the Group.
• Ensure that contractual terms on termination
and any payments made are fair to the individual
and the Group, that failure is not rewarded and
that a duty to mitigate risk is fully recognised.
• Review any major changes in employee
remuneration and benefits structures
throughout the Group.
• Select, appoint and determine terms of
reference for independent remuneration
consultants to advise the Committee on
Remuneration Policy and levels of remuneration.
• Ensure that the remuneration structures in
the Group are compliant with the rules and
requirements of regulators and all relevant
legislation, and that any deviations are agreed in
the interest of the Company and its stakeholders.
• Address the requirements as specified in the
Code for clarity, transparency, simplicity,
mitigation of reputational risk, proportionality
and alignment to culture and strategy; and
whether the Remuneration Policy operates as
intended in terms of Company performance and
quantum and if not what changes are necessary.
• Seek advice from Group control functions to
ensure remuneration structures and annual
bonuses are appropriately aligned to the
Group’s risk appetite.
2. Remuneration Committee membership
The Code provides that a Remuneration Committee
should comprise at least three members who are
independent Non-Executive Directors (other than
the Chairperson of the Board). The Remuneration
Committee, chaired by Hanny Kemna comprises
Salehuddin Ahmed and Chris Low until
16 December 2024. On that date the composition
changed, with Guy Dawson replacing Chris Low.
Sheila M’Mbijjewe joined the Committee on
17 December 2024. Chris Low will continue to
attend meetings by invitation, as is commonly the
case for all Directors.
All of the members of the Committee are
independent. Details of members’ attendance at
meetings in 2024 are set out on page 109.
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94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
Remuneration Committee report (continued)
Salaries at a country level are set by the local country management. Through our employee surveys,
management collects insights on salary expectations. The Company also considers salary levels paid in the
local markets including those paid by our competitors. In 2024, the average percentage increase in salaries
in USD terms at the Group was 0.3% and the actual increase in expenditure was 4.2% (see table below).
Particulars
Total
(2024)
USD’000
Total
(2023)
USD’000
Increase in
USD’000 %
Employees’ remuneration 64,794 62,159 2,634 4.2
The Company has adopted an LTIP as more fully described on pages 114 and 118.
Key performance indicators
KPIs 2024 2023 2022 2021 2020
% change
2024
–2023
% change
2023
–2022
% change
2022
–2021
% change
2021
–2020
Number of clients (m) 2.5 2.3 2.3 2.4 2.4 8% 0% -4% 0%
Number of branches 2,145 2,016 2,028 2,044 1,965 6% -1% -1% 4%
Net loss/profit 28.5 8.8 17.9 6.4 -1.4 226% -51% 180% -557%
OLP
1
446.6 361.9 351.2 403.7 415.3 21% 3% -13% -3%
PAR>30 days
2
2.2% 2.1% 5.9% 5.2% 13.1% 6% -64% 13% -60%
1 Outstanding loan portfolio (‘OLP’) includes off-book Business Correspondent (‘BC’) loans and Direct Assignment (‘DA’) loans, excludes
interest receivable, unamortised loan processing fees, and deducts modification losses and ECL provisions from Gross OLP.
2 PAR>30 shown in the table is the percentage of on-book OLP that has one or more instalments of repayment of principal past due for more
than 30 days and less than 365 days, divided by the Gross OLP (excluding off-book loans).
3. Directors’ and key managers’ salaries
On 1 November 2024, Rob Keijsers was appointed
Interim CEO. His salary was increased by USD
100,000 per annum, by way of an acting allowance,
to a total remuneration of the equivalent in Euros
of USD 350,000 per annum. Mr Keijsers is
employed under a Dutch employment agreement
and in accordance with Dutch law requirements he
is required to give 3 months’ notice of termination
of employment and receive 6 months’ notice to
terminate his employment.
On 22 July 2024, Rob Keijsers was awarded 150,000
share options under the LTIP (alongside a grant of
200,000 options to Karin Kersten who was still CEO
at that time which options were subsequently
reduced when she stepped down as CEO).
On 1 November 2024, Chris Low was appointed as
Executive Chairperson and his remuneration was set
at GBP 193,300 (approx USD 250,000) per annum
pro rata until such date as a permanent CEO was
appointed. The Executive Chairperson role was
agreed to be fulfilled by a time commitment of
2.5 days per week.
The Committee approved a fee of GBP 55,000
per annum for Sheila M’Mbijjewe’s appointment
on 17 December 2024 as Non-Executive Director
in line with the fees paid to the other
Independent NEDs.
Dirk Brouwer’s salary is USD 375,000. Over time,
his salary will decrease, but will not fall below
USD 200,000. He is not entitled to any pension
contribution by the Company, and will not receive
any further variable remuneration, including LTIP
grants. Mr Brouwer is employed under a
Dutch employment agreement as of June 15, 2023
and in accordance with Dutch law requirements he
will be required to give 3 months’ notice of
termination of employment and receive 6 months’
notice to terminate his employment. Mr Brouwer’s
change of role will not impact his outstanding
LTIP award.
The salary levels for senior managers responsible
for managing the Group were initially set in 2018
based on advice received from the remuneration
consultants Willis Towers Watson who performed
a benchmarking study of salaries in Dhaka and the
Netherlands at the time of the IPO in 2018, which
was updated in 2023. These salaries have over time
been adjusted to reflect individual promotions.
The majority of senior management was rewarded
at the time of the IPO through the vesting of share
options. In addition, as described below a selected
group of employees was awarded stock options in
2022, 2023 and 2024.
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94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
Remuneration Committee report (continued)
3.1 Other commitments
Where the Company has made a commitment to
a Director to make a remuneration payment or
payment for loss of office before this policy came
into effect or before the person became (but not
in anticipation of their becoming) a Director, the
Company will honour the commitment, even if it is
inconsistent with the Remuneration Policy, which
is in effect when the payment is to be made.
The existing and former Directors have the
following entitlements pursuant to commitments
made before this policy came into effect:
On 1 November 2024 Karin Kersten stepped down
as CEO and it was agreed that the following
payments would be made pursuant to a settlement
agreement dated 17 October 2024 between her
and the Company The Board acknowledges the
CEO’s departure on amicable terms and recognises
her as a good leaver, appreciating her valuable
service to the Company:
• Monthly salary (based on EUR 386,183.23 p.a.
(gross) and normal benefits during her six-month
notice period to 1 May 2025, together with a
payment in lieu of accrued but not taken holiday
entitlement as at that date
• In May 2025, a lump sum payment of EUR
38,439.55 (before deductions for tax and social
security) equal to the transition fee
(transitievergoeding), as required under
Dutch law.
The annual percentage change in the Directors’ pay over the five years to 2024, compared to the average
for other employees, is set out below:
Annual salary/fee Currency 2024 2023 2022 2021 2020
%
change
2024
–2023
%
change
2023
–2022
%
change
2022
–2021
Executive Directors
Rob Keijsers USD 350,000 – – – – – – –
Chris Low
GBP 193,300
1
– – – – – – –
Karin Kersten
EUR 386,183
2
375,000 187,815 – – 5% 99.6% –
Non-Executive Directors
Dirk Brouwer USD 375,000 375,000 425,000 425,000 425,000 0% -12% 0%
Guy Dawson
GBP 55,000
3
75,000 70,000 70,000 60,000 -27% 7% 17%
Sheila M’Mbijjewe GBP 55,000 – – – – – – –
Chris Low
GBP 65,000
4
65,000 – – – 0% – –
Hanny Kemna GBP 65,000 65,000 60,000 60,000 50,000 0% 8% 0%
Salehuddin Ahmed GBP 55,000 55,000 50,000 50,000 50,000 0% 10% 0%
Average salary per staff
4
USD 4,371 4,358 4,274 3,665 3,440 0.3% 2% 17%
Earnings growth
5
226% -51% 180% 557% -10 4%
1 GBP 193,300 from 1 November 2024, following his appointment as the Executive Chairperson.
2 Karin Kersten’s salary increased in July 2024 until 1 May 2025 (as of 1 November 2024 she is no longer a Director).
3 Guy Dawson’s salary changed from GBP 75,000 to GBP 55,000 from 1 November 2024.
4 All ASAI staff excluding Executive Directors.
5 ASAIG consolidated.
• Outstanding share option awards under the
Long Term Incentive Plan (“LTIP”), reduced
pro-rata to reflect her period of employment to
1 May 2025, will be allowed to vest on their
original vesting dates (October 2025 to July
2029), in accordance with the rules of the LTIP
(including malus and clawback provisions). This
means a maximum of 225,638 shares will be
delivered to the extent options are exercised as
per the schedule in the table to the right:
• Up to EUR 40,000 (plus VAT) will be paid in
respect of legal advice and outplacement support.
• Rob Keijsers was awarded 114,113 options
under the LTIP on 28 October 2022 and
150,000 options on 22 July 2024.
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121 Independent Directors’ Committee report
121 Disclosure Committee report
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Additional information
Remuneration Committee report (continued)
Policy table – Executive Directors
Component and rationale Description What is the maximum that may be paid in respect of the component?
Basic salary
Helps to recruit and
retain high-calibre
Directors.
The Committee reviews basic salary annually, taking account of performance
and market conditions. Basic salary will not normally be increased by more
than the annual increase in basic salary of employees of the group except as
described, in relation to new recruits, in paragraph 4.8.
Except upon promotion to a more senior post or a material
increase in his or her responsibilities, or if the average annual
basic salary increase of Group employees exceeds 10%, no
Executive Director’s basic salary may be increased by more
than 10% in any year.
Benefits
Enables Directors to
perform their roles
effectively by contributing
to their well-being and
security. Provides
competitive benefits
consistent with the role.
Benefits are set by the Committee from time to time and currently include: Any such incentive not to exceed 100% of salary in any year
• 13th month bonus
equal to one month
salary.
• Private medical cover.
• Life assurance cover.
• Expatriate benefits offered in connection
with recruitment.
• Reimbursement for reasonable expenses
incurred in connection with duties, including
travel expenses and any tax payable on
travel expenses.
Performance-based
incentive
The performance conditions will be set by the Remuneration Committee.
Any rewards or incentives may be a combination of cash (for any single year)
and/or options under the existing LTIP Scheme. Leaver provisions will be
treated in the same way as paragraph 4.9.
Any such incentive not to exceed 100% of salary in any year
Options
Aligns pay with
longer-term returns
to shareholders.
Directors can be granted options under the ASA International Long-term
Incentive Plan (‘LTIP’). These are rights to acquire shares (or a cash
equivalent) at any time after vesting for an exercise price set at grant which
is based on the market value of a share at grant.
Options will normally vest in three instalments starting on the third
anniversary of grant (60%), and on the fourth and fifth anniversaries of grant
(20% each). No performance conditions or post-vesting holding periods apply.
Malus and clawback provisions apply as described below.
Options have a term of ten years and can only be exercised to the extent
they have vested.
Dividend equivalents are not payable.
The fair value of options (as used for accounting purposes)
granted to any one Director in any one financial year must not
be more than 100% of their basic salary.
Pension
Helps to recruit and
retain high-calibre
directors.
Executive Directors are entitled to an employer contribution to a pension
scheme or a cash payment in lieu.
Payments in lieu of pension and employer contributions to
defined contribution schemes are limited to 17% of each
member’s basic salary. This is equivalent to the contribution
rate for the majority of the workforce.
4. Remuneration Policy
This section sets out the proposed Remuneration
Policy, which will take effect subject to
shareholders’ approval at the 2025 AGM.
4.1 Review and implementation of policy
The policy is developed and reviewed by the
Remuneration Committee of the Board of Directors
(the ‘Committee’).
Conflicts of interests are managed by ensuring that
the Committee comprises only Independent
Non-Executive Directors and no Director is present
when their own remuneration is being discussed.
The Committee seeks assistance from independent
remuneration consultants as appropriate to provide
an external perspective and also seeks the view of
the Audit and Risk Committee and senior
management.
The Board is proposing the following change to the
current Remuneration Policy: The Company intends
to introduce a performance-based incentive
scheme, which will not pay out more than 100% of
salary in any year. The performance conditions will
be determined by the Board.
4.2 Policy table for Executive Directors
The adjacent table sets out all the components of
remuneration for the Executive Director from the
date of the AGM as approved in 2024, other than
recruitment packages. See also table in Para 5.3.
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121 Independent Directors’ Committee report
121 Disclosure Committee report
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Additional information
Remuneration Committee report (continued)
4.5 Non-Executive Directors
The table below sets out all the components of remuneration for Non-Executive Directors from the date
of the 2023 AGM, other than recruitment packages.
Policy table – Non-Executive Directors
Component and rationale Description
What is the maximum that may
be paid in respect of the
component?
Fees
Attract and retain a Chairperson and
Non-Executive Directors who have the
requisite skills and experience to
determine the strategy of the Group
and oversee its implementation.
Includes national insurance contribution
for the UK-based directors.
Directors’ fees are in principle
reviewed on an annual basis
(if not agreed otherwise by
the Committee).
Directors’ fees (including
any benefits) must not, in
aggregate, be more than
the limit set out in the
Articles of Association of
the Company from time to
time, which is currently
GBP 2,500,000.
Expenses
Ensures the Directors are not left
out of pocket.
Reimbursement for reasonable
expenses incurred in connection with
duties, including travel expenses and
any tax payable on travel expenses.
N/A
Non-Executive Directors do not receive options and do not participate in any pension or incentive
arrangements. As explained below, no shareholding requirements apply to Directors.
If a Non-Executive Director provides additional services to the Group (not in connection with directorial
duties), they may be paid for those services on a basis agreed by the Board of Directors.
4.6 Relationship to remuneration paid to other employees
The remuneration package of Executive Directors is based on the same elements as those offered to other
employees of the Group but with a greater emphasis on variable pay and alignment with shareholders,
delivered through options. This reflects the Directors’ greater ability to influence corporate performance.
In formulating the policy, the Committee started by looking at remuneration packages offered to employees
across the Group and changed those where necessary to reflect the leadership role of Directors and the
international pool from which Directors are recruited.
The main remuneration comparison measurements which the Committee took into account when setting
Remuneration Policy for the Executive Directors at the time of the IPO was the benchmark reports
prepared by the independent consultant Willis Towers Watson in 2018 and salary levels and rewards
across the microfinance industry. In 2023 FIT consultants prepared a benchmark report in
respect of NED salaries.
• There has been a failure of risk management
for which the Director was directly or indirectly
(and either solely, or collectively) responsible.
• The Director has been guilty of fraud or gross
misconduct or has brought any member of the
Group into disrepute.
Similarly, the Director can be required to give back
some or all of the shares or cash received under the
option (or pay an amount equal to the value of
shares) if, within three years of vesting, the
Committee becomes aware that there has been a
misstatement of results for any year before vesting
or the Director has been guilty of fraud or gross
misconduct or has brought the Group into
disrepute.
4.4 Treatment of options on takeovers and
other transactions
Options will generally vest early on a takeover.
Alternatively, Directors may be allowed or required
to exchange their options for equivalent options
over shares in the acquiring company.
Where an option vests in these circumstances,
unless the Committee decides otherwise, the
number of shares in respect of which it can be
exercised will be reduced to reflect the fact that it
is vesting early.
The Committee can adjust the number or type of
shares under an option and/or the exercise price to
take account of any rights issue or similar
transaction, demerger, special dividend, variation of
capital or other event which it considers could have
an impact on an option.
4.3 Malus and clawback
The Committee can reduce the number of shares
in respect of which an option vests or can be
exercised (including a reduction to zero) if:
• There has been an error in the calculation of the
level of grant or vesting of any option or the
amount of any other variable remuneration paid
to the Director.
• There has been a misstatement of the
Company’s results for any year before vesting.
• A business unit or profit centre in which the
Director worked has subsequently made a loss
out of business written in that year or from
circumstances that could reasonably have been
risk-managed.
• Information has emerged since the grant date
relating to the relevant financial year which would
have affected the size of the option granted.
• The Committee determines in its absolute
discretion that the underlying financial health of
the Group has significantly deteriorated such that
there are severe financial constraints on the
Group which preclude or limit the Group’s ability
to facilitate funding of options and the Director
was directly or indirectly (and either solely, or
collectively) responsible for such deterioration.
• The Director has engaged in conduct which has
had a material adverse effect on the financial
position of the Group, the member of the Group
by which the Director was then employed or the
business unit in which he or she then worked,
between the award date and vesting.
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121 Independent Directors’ Committee report
121 Disclosure Committee report
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Additional information
Remuneration Committee report (continued)
4.7 Approach to recruitment
A new Executive Director’s remuneration should
take into account that Director’s level of the skills
and experience required for the role and may start
off lower than his or her predecessor’s
remuneration with a view to reaching a market rate
over time, subject to performance.
When recruiting a new Executive Director, the
starting point for negotiations would be the
components described in the table in paragraph 4.5.
The Committee may take into account benchmarking
studies and industry salary levels for comparable
roles. However, the Committee retains final
discretion over setting such remuneration and may
adjust it if deemed necessary for the recruitment of a
particular individual.
The maximum level of variable remuneration
(excluding compensatory awards described below)
for Executive Directors will not be more than 100%
of the recruit’s basic salary (with options valued as
described in the policy table).
A Director recruited to work outside their home
country may be offered relocation benefits including:
• Accommodation allowance.
• Education allowance.
• Two free air-tickets per year to and from home.
But these will not last more than two years from
starting employment.
The Committee may make compensatory awards
in the form of cash, shares or share awards/options
in the Company to compensate a new Executive
Director for benefits they will lose as a result of
joining the Company. Those awards would, so far
as practicable:
• Reflect the value, at the time of grant, of the
awards being lost.
• Take the same form as the awards which are
being lost.
• Vest at the same time as the awards being lost.
• Be subject to comparable service and
performance conditions (though any
performance conditions may relate to the
performance of the Company).
When recruiting a Non-Executive Director
(including a Chair), the remuneration offered would
be consistent with the components described in
the table in paragraph 4.5.
4.8 Service contracts and letters of appointment
The Executive Director (CEO) has a service contract
and the Non-Executive Directors have a letter of
appointment, all of which are available for inspection
at the Company’s registered office. The CEO is not
normally appointed for a fixed term but continue
until her/his employment or office is terminated.
Dirk Brouwer, as Deputy Chairperson and Special
Adviser, is employed under an indefinite
employment contract.
Non-Executive Directors are appointed for an
initial (and renewable) three-year term but are
subject to annual re-election at the AGM.
4.9 Policy on notice periods and payments for loss of office
The Company’s policy is that:
• The CEO contract (and the employment contract of Dirk Brouwer, being Deputy Chairperson and Special
Adviser) requires a notice period of six months by the employer (and three months for the employee).
• Non-Executive Directors’ letters of appointment require three months’ notice from either party but are
terminated immediately if Director is not re-elected at an AGM. For future Executive Directors, the
notice period will not be more than twelve months.
Each Directors’ contract or letter of appointment is consistent with this. For each component of pay,
the amount paid to an Executive Director on termination will be determined as follows:
Component Determination
Salary
and
benefits
The Director receives salary and benefits and pension (if any) benefits during their notice period.
The Company can decide to make a payment in lieu of notice equal to basic salary for the balance
of the notice period and may decide to pay this in instalments subject to reduction if the Director
enters alternative employment before the end of the notice period.
Options An unvested option will normally lapse on leaving employment. Options which have already become
exercisable may be exercised for up to 12 months from the date of leaving after which they will lapse.
However, if the Executive Director dies or leaves because of disability, ill-health, injury, redundancy,
retirement, sale of their employer (or in other circumstances if the Committee allows), the option will
continue in effect and, unless the Committee decides otherwise, the number of shares in respect of
which it can vest and be exercised will be reduced pro rata to reflect the fact that the Director left early.
Alternatively, the Committee may allow the option to vest on leaving, or at some point thereafter,
in which case (unless the Committee decides otherwise) the number of shares in respect of which
the option can be exercised will be reduced pro rata to reflect the fact that it is vesting early. If the
Executive Director dies, the option will vest on the date of death to the extent described above.
Other • A departing Executive Director may
also be paid some or all of the following
on a reasonable basis to be determined
by the Committee:
• Reasonable legal tax or outplacement
expenses.
• Accrued holiday pay.
• Payments in compensation for non-compete
restrictions.
• Relocation expenses.
• Amounts required to satisfy or settle any
actual or potential legal claim by the Director
against any Group company.
• Ex gratia retirement gifts and presentations.
• Transition fees under Dutch law
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Karin Kersten was granted 157,253 options on
28 October 2022. Karin Kersten also received an
exceptional award of 125,088 share options under
the LTIP on 3 July 2023 and was awarded 200,000
share options under the LTIP on 22 July 2024.
The Options were reduced upon her exit from the
Company. Following entering into a Settlement
Agreement, the number of Options were reduced.
See table above.
Rob Keijsers was awarded 114,113 Options under
the LTIP on 28 October 2022 and 150,000 Options
on 22 July 2024. The Options will normally vest,
subject to continued employment, on the following
schedule: 20% on each anniversaries of the Grant
Date. (In case of Rob Keijsers, it is noted that 40%
of the options had already vested on 28 October
2024, before he became a Director.) To the extent
they vest, the Options are exercisable at a average
price of GBP 0.87 per ordinary share, being the
average share price for the three business days
before the Grant Date.
On 18 July 2018, a number of the senior managers,
(including the then Executive Directors and
Managing Directors of the subsidiaries) who were
instrumental in the creation of ASA International,
were awarded a beneficial interest in a portion of
the shares of the Company following the exercise
of the 10% stock option agreed by the Company
pre-IPO.
The Company intends to introduce a performance-
based incentive scheme which will not pay more
than 100% of salary in any year. The performance
conditions will be determined by the Board.
5. Directors’ Remuneration Report 2024
This section of the report explains how the Group’s
Remuneration Policy for Directors, approved at the
AGM in 2023, was applied during the year, and
gives details of awards of options under the LTIP.
The report also summarises the fees paid to
Directors in 2024 as well as the current
shareholding of the Chairperson and the Executive
Directors in the Company.
The 2023-2026 Remuneration Policy was approved
by 95.58% of the votes cast, with 4.42% against
and 0 votes withheld, at the AGM held on
15 June 2023. The 2023 Remuneration Report was
approved by 94.95% of the votes cast, with 5.05%
against and 0 votes withheld at the AGM held on
20 June 2024.
On termination, Non-Executive Directors are only
entitled to any outstanding fees for the period
worked, including their notice period, except
Dirk Brouwer, who receives a salary under his
employment contract).
4.10 Remuneration Policy for key executives
The below constitutes the framework for the
Remuneration Policy of the key executives both
at the country level and the head office level.
The policy aims to:
• Attract, motivate and retain high-calibre
employees across the Group.
• Reward employees fairly, according to their
performance.
• Promote the achievement of the Group’s annual
plans and its long-term strategic objectives.
• Align the interests of employees with those of
all key stakeholders, in particular, our
shareholders, clients and regulators.
• Support effective risk management and promote
a positive client conduct culture.
The Company will work closely with the
Remuneration Committee to set the right policies
and incentives for the key executives both in the
countries and at its head office.
Grant date
Exercise
price
(GBP)
Number of
shares under
option Normally exercisable from Vesting date
Number of
shares under
option tranche
Pro-rate to
termination
(1 May 2025)
10/28/22 0.93 157, 253 60% – 28 October 2025 10/28/25 94,351 84% 78,855
10/28/22 20% – 28 October 2026 10/28/26 31,451 63% 19,718
10/28/22 20% – 28 October 2027 10/28/27 31,451 50% 15,777
7/3/23 0.84 125,088 60% – 3 July 2026 7/3/26 75,052 61% 45,743
7/3/23 20% – 3 July 2027 7/3/27 25,018 46% 11,438
7/3/23 20% – 3 July 2028 7/3/28 25,018 37% 9,147
7/22/24 0.82 200,000 60% – 22 July 2027 7/22/27 120,000 26% 31,013
7/22/24 20% – 22 July 2028 7/22/28 40,000 19% 7,74 8
7/22/24 20% – 22 July 2029 7/22/29 40,000 15% 6,199
Total 482,341 482,341 225,638
5.1 2024 Implementation of the
Remuneration Policy
Prior to 2022 no awards were granted under the
LTIP pending agreement on all relevant terms and
conditions. The 2022 operation of the LTIP was
discussed and agreed in the Remuneration
Committee held on 25 April 2022 and the first grants
were made on 28 October 2022 in the case of
employees and the Executive Directors. The intended
value of the option grants to the Executive Directors
is set forth under options in the table in Para 5.3.
On 28 October 2022, the Company granted
options (‘Options’) over about 2,500,000 ordinary
shares of GBP 0.01 each in the Company (‘Shares’)
under its LTIP to certain Executive Directors and
executives at the Group and country level. As of
31 December 2024, the ASA International Group
plc Employees Benefit Trust has acquired a total of
1,609,558 shares.
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121 Independent Directors’ Committee report
121 Disclosure Committee report
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Remuneration Committee report (continued)
5.2 A single figure table with audited Director pay data is shown below.
Name Position Salary/Fees paid Pension Benefits Bonus
Total
variable pay
(2024)
Total
variable pay
(2023)
Total
variable pay
(2022)
Total
fixed pay
(2024)
Total
fixed pay
(2023)
Total
fixed pay
(2022)
Chris Low
Chairperson
1
GBP 86,383 Travel expenses on actuals 0 0 0 0 GBP 65,000
1
– –
Guy Dawson
Non-Executive Director
2
GBP 71,667 Travel expenses on actuals 0 0 0 0 GBP 75,000 GBP 70,000 GBP 70,000
Hanny Kemna
Non-Executive Director
3
GBP 65,000 Travel expenses on actuals 0 0 0 0 GBP 65,000 GBP 60,000 GBP 60,000
Sheila M’Mbijjewe
Non-Executive Director
4
GBP 2,218 Travel expenses on actuals 0 0 0 0 - - -
Salehuddin Ahmed Non-Executive Director GBP 55,000 Travel expenses on actuals 0 0 0 0 GBP 55,000 GBP 55,000 GBP 50,000
Rob Keijsers
Chief Executive Officer
5
USD 58,333 USD 2,278 Travel expenses on actuals 0 0 0 0 USD 58,333 – –
Dirk Brouwer Deputy Chairperson and Special Adviser USD 375,000 Travel expenses on actuals 0 0 0 0 USD 375,000 USD 425,000 USD 425,000
Karin Kersten
Former Director and CEO
6
EUR 380,593 EUR 13,164 Travel expenses on actuals 0 0 0 0 EUR 375,000 EUR 187,815 -
Note: (a) No pension was provided to the Directors with the exception of Rob Keijsers and Karin Kersten. (b) No bonuses are paid to Non-Executive Directors under the policy and no long term incentives vested. (c) All salaries are paid on a pro rata basis.
1 Chris Low’s annual fee was GBP 65,000 until 1 November 2024, after which it was increased to GBP 193,300 following his appointment as the Executive Chairperson. The increased salary (from November 2024) was settled in January 2025.
2 Guy Dawson’s fee was changed from GBP 75,000 to GBP 55,000 effective 1 November 2024.
3 Hanny Kemna receives GBP 55,000 plus an additional GBP 10,000 for chairing two committees.
4 Sheila M’Mbijjewe joined the Board on 17 December 2024 and received her pro rata salary for December in January 2025.
5 Rob Keijsers’ annual salary was USD 250,000. He received an additional annual acting allowance of USD 100,000 from 1 November 2024 following his appointment as Interim CEO.
6 Karin Kersten’s annual salary was increased in July 2024. Karin Kersten was enrolled in the Company’s pension plan until 1 November 2024.
5.3 Share Options granted in 2024
to Executive Directors
On 22 July 2024 the Company granted options
(‘Options’) over 150,000 ordinary shares of £0.01
each in the Company (‘Shares’) under its LTIP to Rob
Keijsers. The number of Options granted was a Board
decision. The Options will normally vest, subject to
continued employment, on the following schedule:
• 20% on each anniversaries of the Grant Date.
To the extent they vest, the Options are exercisable
at a price of 82 pence per ordinary share, being the
average share price for the three business days before
the Grant Date. Options do not attract dividend
equivalents. The face value of the Option is 123,000
based on the price of 82 pence per ordinary share.
In April 2022 the Employee Benefit Trust (‘EBT’) that
is entitled to hold the Shares in relation to the LTIP
was established. The EBT is managed by an
independent Trustee. The EBT has acquired an
additional 304,728 Shares of the Company by the
end of 2024 to hold in reserve for employees who
choose to exercise their option rights under the LTIP.
Malus and clawback provisions only apply to
Options, and no component of remuneration is
dependent on performance measures or targets
(save for value being linked to share price increase,
in relation to options). The Company does not have
any in-employment or post-employment
shareholding requirements for its Directors, as
the Company believes the nature of its LTIP, being
a market-value option plan, provides sufficient
long-term exposure for the Executive Directors to
share price and long-term shareholder alignment.
The Company has selected a total vesting period
of five years (with options normally vesting in
instalments between years three and five) as the
appropriate vesting period, as the Company
believes that a phased, long-term vesting period
(without any additional holding period) is warranted
given the growth stage of the Company and the
fact the market-value structure of the Option plan
means the options’ value depend on sustained
share price growth.
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105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
Employees’
remuneration
Distribution to
shareholders
Expenditure on
other measurements
64,793
62,159
6,782 7,656
2,952
0
10,000
20,000
30,000
40,000
50,000
70,000
60,000
In USD
2024
2023
IPO
date
Note: TSR calculation is assuming a hypothetical 100 GBP investment
in ASA International ordinary shares and in the FTSE 250 index at
13 July 2018, plus dividend reinvestment at the time of
dividend payment.
1 2024 calculation includes the interim dividend paid on
24 December 2024.
YE
2018
YE
2019
YE
2020
YE
2021
YE
2022
YE
2023
YE
2024
1
ASAI
FTSE 250
0
20,000
40,000
60,000
80,000
100,000
140,000
120,000
In GBP
Remuneration Committee report (continued)
6. Directors’ shareholdings
The shareholdings of Directors in the Company as
of 31 December 2024 are shown below.
Name of Director Number of shares % holding
Dirk Brouwer
1,2,3
0 0%
Rob Keijsers 526,545 0.5%
1 Dirk Brouwer has undertaken a restructuring of his economic
ownership of ASA International for the benefit of his four children
effective 30 December 2024. Consequently, Dirk’s economic
interest went from 19.3 to 0%.
2 As of 31 December 2024, Dirk Brouwer holds a 46.01% controlling
interest in the Company through CMIMC, which he ultimately
controls. This interest is held via Catalyst Microfinance Investors
(29.2%) and Catalyst Continuity (16.81%), both also under his
ultimate control via CMIMC. Decisions taken by this company,
including decisions as to the voting of the relevant shares, are
made by the Board of Directors thereof (i.e. Dirk Brouwer).
3 On 5 March 2025, Dirk Brouwer’s interest in the Company
reduced to 40.07%. This interest is held via Catalyst Microfinance
Investors (21.94%) and Catalyst Continuity (18.13%), both also
under his ultimate control.
Directors and employees of the Group are required
to comply with applicable legislation relating to
dealing in the Company’s shares as well as the
Company’s share dealing rules.
As disclosed previously (including at the time of
the Company’s listing), certain (direct and indirect)
shareholders in the Company are taken to
constitute a ‘concert party’ for the purposes of the
Takeover Code. Those shareholders include
Dirk Brouwer and the entities through which he
indirectly holds his interests in the Company,
including Catalyst Microfinance Investors (‘CMI’)
and Catalyst Continuity, (together referred as
‘Concert Party’). CMI and Catalyst Continuity
are ultimately controlled by Dirk Brouwer through
CMIMC, a holding company of the founders
of CMI.
A consequence of the current aggregate
shareholding of the Concert Party being
40,066,894 shares is that any increase in that
aggregate shareholding (which could result from,
among other things, any exercise of the Options
granted to Dirk Brouwer), may result in a
requirement under Rule 9 of the Takeover Code for
the Concert Party to make a mandatory offer for
the remainder of the share capital of the Company
not already held by it. Therefore, in 2023 and 2024
the Independent Directors, being all of the
directors of the Company who are not members
of the Concert Party, sought and obtained a
waiver from the Takeover Panel in respect of any
requirement for the Concert Party to make such a
mandatory offer under Rule 9 of the Takeover
Code. The terms of this waiver were subsequently
approved by the independent shareholders of the
Company at the 2023 AGM and 2024 AGM.
Relative importance of spend on pay (USD ’000s) Historical TSR performance (GBP ’000s)
5.4 Other disclosures
CEO annual salary and long term incentives 2024 2023
Annual salary USD 350,000
1
EUR 375,000
Note: No bonuses were paid in previous years and long-term incentives have not vested in any year so far, with the earliest vesting date
commencing in 2025.
1 Paid in Euros.
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94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
Remuneration Committee report (continued)
Dirk Brouwer – Deputy Chairperson
and Special Adviser
Mr Brouwer is employed through an employment
agreement dated 15 June 2023. His salary is
USD 375,000. Mr Brouwer’s employment
agreement is terminable in accordance with Dutch
Law. The Company shall observe a notice period of
six months and Mr Brouwer will observe a notice
period of three months. The Company will consider
making a payment under any such agreement on a
case-by-case basis, taking account of the
contractual terms, the circumstances of the
termination and any applicable duty to mitigate. In
his role as (i) Deputy Chairperson of the Board and
(ii) Special Adviser to the new CEO, the Executive
Committee and the broader management team,
Mr Brouwer only receives a regular, annual salary
for his services to the Company and no Board and
Director fees or any other emoluments.
Guy Dawson – Non-Executive Director
Mr Dawson is a Non-Executive Director engaged
through a letter of appointment dated 28 June
2018 and served as Non-Executive Chairperson
from 1 January 2021 until 1 November 2024.
His fee as a Non-Executive Director is GBP 55,000
per annum and his engagement with the Company
can be terminated with three months’ notice.
Hanny Kemna – Non-Executive Director
Ms Kemna is a Non-Executive Director engaged
through a letter of appointment dated 28 June
2018. She is the Chair of the Remuneration
Committee, and the Audit and Risk Committee (and
member of the Independent Directors’ Committee).
Her fee as a Senior Independent Director is GBP
65,000 per annum (including a GBP 10,000 fee for
chairing the Audit & Risk Committee and
Remuneration Committee) and her engagement
with the Company can be terminated with three
months’ notice.
Salehuddin Ahmed – Non-Executive Director
Dr Ahmed is a Non-Executive Director engaged
through a letter of appointment dated 7 December
2020. He is a member of the Nomination and Audit
and Risk Committees (and the Independent
Directors’ Committee). His fee as a Non-Executive
Director is GBP 55,000 per annum and his
engagement with the Company can be terminated
with three months’ notice. His term was extended
until 19 June 2025 by virtue of the letter of
extension dated 17 December 2024.
Sheila M’Mbijjewe – Non-executive
Independent Director
Ms. M’Mbijjewe is a Non-Executive Director
through her letter of appointment dated
14 November 2024, effective from 17 December
2024. She is a member of the Remuneration
Committee, Audit and Risk Committee and the
Independent Directors’ Committee. Her fee as a
Non-Executive Director is GBP 55,000 per annum
and her engagement with the Company can be
terminated with three months’ notice.
Annual Salary Executive Director
(as at 31 December 2024) Fee
Rob Keijsers USD 350,000
Chris Low
1
GBP 193,300
1 From 1 Nov 2024 until 1 April 2025.
Consideration of shareholders’ views
The Chairperson of the Board is available to be
consulted by our major shareholders on key issues
including remuneration at any time. The Board
does its best to ensure that there is a satisfactory
dialogue with shareholders, on mutual
understanding of objectives.
Committee Effectiveness
The 2024 evaluation of the Committee’s
effectiveness indicated that it remained satisfactory,
and the Committee was properly consulted on the
remuneration implications of Executive Director and
other senior management changes, with full
briefings provided including independent peer group
pay comparisons. In 2025, the Committee looks
forward to discussing management’s proposals for
updated HR policies and the new Remuneration
Policy, which includes a more structured system for
staff performance evaluation.
This report was approved by the Board of Directors
on 23 April 2025 and signed on its behalf by:
Hanny Kemna
Chairperson of the Remuneration Committee
23 April 2025
7. Service contracts and letters of appointment
Details of Directors’ pay are stated in the table at
section 5.2 above. No Director has been involved in
deciding his or her own remuneration.
Chris Low – Non-Executive Director
Mr Low is the Non-Executive Chairperson and
Director engaged through a letter of appointment
dated 12 December 2022 and subsequently revised
by a new letter dated 17 December 2024 w.e.f.
1 November 2024 when he was appointed as the
Executive Chairman. His initial appointment took
effect on 1 February 2023. He is a member of the
Nomination, Audit and Risk and Independent
Directors Committees. His fee as a Non-Executive
Director was GBP 65,000 per annum until
1 November 2024. From 1 November 2024 until
1 April 2025 his fee is GBP 193,300 per annum paid
on a pro rata basis. His engagement with the
Company can be terminated with three
months’ notice.
Rob Keijsers – Chief Executive Officer
Mr Keijsers is employed through an employment
agreement dated 27 February 2022 (effective from
9 May 2022). A new employment agreement dated
12 December 2024 (effective from 1 November
2024) was executed upon his appointment as Interim
CEO. His current salary is USD 350,000 including an
annual acting allowance of USD 100,000. Mr Keijsers
employment is terminable in accordance with Dutch
Law. The Company shall observe a notice period of
six months and Mr Keijsers will observe a notice
period of three months. The Company will consider
making a payment under any such agreement on a
case-by case basis, taking account of the contractual
terms, the circumstances of the termination and any
applicable duty to mitigate.
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89 Country Heads
91 Board activities
92 Leadership from the Board
94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
Independent Directors’ Committee report
The Independent Directors’ Committee identifies
and manages matters involving conflicts of interest
(including potential conflicts of interest) between
any Group company, on the one hand, and any
controlling shareholder or related party (each as
defined under the UK Listing Rules), on the other
hand. It is also responsible for overseeing and
scrutinising the relationship between the Group,
its related parties and its controlling shareholders
(including evaluating, monitoring and approving any
material transactions or arrangements between
such parties and generally monitoring compliance
with the Relationship Agreement (see page 93).
In 2024, the Independent Committee discussed
amongst other things succession planning, the
hiring of a qualified internal auditor, as well as the
potential appointment of a new Non-Executive
Director in 2024 and 2025.
The Independent Directors’ Committee comprises
all of the Independent Non-Executive Directors,
being Salehuddin Ahmed, Guy Dawson, Hanny
Kemna, Sheila M’Mbijjewe and Chris Low. The
Committee met three times in 2024.
Meeting attendance
Member name and role Meetings attended
Hanny Kemna, NED 3/3
Chris Low, NED
1
3/3
Salehuddin Ahmed, NED 3/3
Guy Dawson, NED 3/3
Sheila M’Mbijjewe, NED
2
0/0
1 Member until 1 November 2024 due to appointment as Executive
Chairperson of the Board.
2 Member as of 17 December 2024.
Disclosure Committee report
The Disclosure Committee, chaired by the CEO,
comprises members of the Executive Committee
and the Head of Investor Relations. It meets as
required in order to assist the decisions of the
Board concerning the identification of inside
information and to make recommendations about
how and when that information should be disclosed
in accordance with the Company’s disclosure
procedures manual. Its primary duty is to ensure
that inside information is properly disclosed in
accordance with the requirements of the Market
Abuse Regulation.
The Disclosure Committee had conference calls
and meetings through the year in 2024 to assess
developments in the Company and concluded on
each occasion that there was no matter which
could be considered as inside information or
thought to be capable of becoming inside
information.
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89 Country Heads
91 Board activities
92 Leadership from the Board
94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
Directors’ report
The Directors of the Company present their report
for the year ended 31 December 2024. The
Company is a public limited company, incorporated
in England and Wales with the registered number
11361159 and with its registered office situated at
Highdown House, Yeoman Way, Worthing, West
Sussex BN99 3HH, United Kingdom.
The Strategic Report, set out on pages 01 to 83
of this Annual Report, and Corporate governance
report, Committee reports and the Directors’
Remuneration Report, set out on pages 84 to 125
of this Annual Report, include information that
would otherwise need to be included in this
Directors’ report. Relevant items are referred
to below and incorporated by reference into
this report.
Results and dividends
The consolidated results for the year are shown on
page 137 to 140. The profit before tax of the
Company was USD 63.5m in 2024, as against USD
32.2m for the previous year.
An interim dividend for 2024 of USD 0.03/share
was paid to shareholders on 24 December 2024.
Directors
The names of the Directors of the Company at
the date of this report, together with biographical
details, are given on page 86-87 of this Annual
Report. All of them served throughout the 2024
financial year except for Rob Keijsers and Sheila
M’Mbijjewe, who joined the Board in November
and December 2024, respectively. Additionally,
Karin Kersten left the Board in November 2024.
In accordance with the Code, all Directors will
retire at the 2025 Annual General Meeting (‘AGM’)
and, except Salehuddin Ahmed will offer
themselves for re-election at that meeting.
Further details on the Directors’ remuneration
and service contracts or appointment letters
(as applicable) can be found in the Directors’
Remuneration Report on pages 109 to 120 of
this Annual Report.
Directors’ interests
The Directors’ interests in the share capital of the
Company as at 31 December 2024 are set out on
page 119 of the Directors’ Remuneration Report.
Powers and appointment of Directors
The Company’s Articles of Association set out
the powers of the Directors, and rules governing
their appointment and removal. The Articles of
Association can be viewed at the registered office
of the Company. Further details on the powers,
appointment and removal of Directors are set out
in the Corporate governance report on page 120
of this Annual Report.
Directors’ indemnities and insurance
In accordance with its Articles of Association, the
Company has granted an indemnity to each of its
Directors on terms consistent with the applicable
statutory provisions. This indemnifies the Director
in respect of (a) any liability incurred by or attaching
to Directors in connection with any negligence,
default, breach of duty or breach of trust by the
Director in relation to the Company or any
associated company, or (b) in the actual or
purported execution and/or discharge of the
Director’s duties and/or the actual or purported
exercise of the Director’s powers and/or otherwise
in relation to, or in connection with, the Director’s
duties, powers or office as an employee, officer,
trustee or agent of the Company and/or any
associated company other than any liability
(i) to the Company or any associated company,
(ii) to pay a fine imposed in criminal proceedings,
(iii) to pay a sum payable to a regulatory authority
by way of a penalty in respect of non-compliance
with any requirement of a regulatory nature
(however arising), (iv) in defending any criminal
proceedings in which they are convicted, where
such conviction is final, (v) in defending any civil
proceedings brought by the Company or an
associated company in which judgement is given
against him or her, where such judgement is final,
or (vi) in connection with any application for relief
under the provisions referred to in section 234(6)
of the Companies Act, where the court refuses to
grant the Director relief, and such refusal is final.
Furthermore, the third-party indemnity shall
not apply:
(i) To the extent that it is not permitted by,
or consistent with, law or statute from time
to time in force, the Articles of Association
of the Company or the rules and regulations
of any regulatory body;
(ii) To the extent that the Director has been,
or is entitled to be, indemnified or reimbursed
by any Directors’ or Officers’ liability insurance
or any other insurance;
(iii) Where there has been gross negligence,
fraud or wilful default by the Director; nor
(iv) Where the Director has improperly derived
a personal benefit or profit.
Qualifying third-party indemnity provisions for the
purposes of section 234 of the Companies Act
2006 were accordingly in force during the course
of the year, and remain in force at the date of this
report. The Company also maintains liability
insurance for its Directors and Officers.
Share capital
The share capital of the Company as of
31 December 2024 consists of 100,000,000
ordinary shares of GBP 0.01 each.
Under section 551 of the Companies Act 2006,
the Directors may allot equity securities only with
the express authorisation of shareholders which
may be given in general meeting, but which cannot
last more than five years. Under section 561 of the
Companies Act, the Board may not allot shares for
cash (otherwise than pursuant to an employee
share scheme) without first making an offer to
existing shareholders to allot such shares to them
on the same or more favourable terms in
proportion to their respective shareholdings, unless
this requirement is waived by a special resolution
of the shareholders.
Rights attaching to shares
The Company’s Articles of Association set out the
rights and obligations attaching to the Company’s
ordinary shares. All of the ordinary shares rank
equally in all respects.
At general meetings of the Company, on a show
of hands, each member has the right to one vote.
In a poll, each member is entitled to one vote for
every share held.
The shares carry no rights to fixed income.
No person has any special rights of control over
the Company’s share capital and all shares are
fully paid.
The Articles of Association and applicable
legislation provide that the Company can decide to
restrict the rights attaching to ordinary shares in
certain circumstances (such as the right to attend
or vote at a shareholders’ meeting), including where
a person has failed to comply with a notice issued
by the Company under section 793 of the
Companies Act 2006.
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89 Country Heads
91 Board activities
92 Leadership from the Board
94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
Directors’ report (continued)
Deadline for exercising voting rights at AGM
Full details of the deadlines for exercising voting
rights in respect of the resolutions to be considered
at the AGM, to be held on 17 June 2025, will be set
out in the Notice of AGM.
Restrictions on the transfer of shares
There are no specific restrictions on the transfer
of the Company’s shares, which are governed by
the general provisions of the Articles of Association
and prevailing legislation. The Articles of
Association set out certain circumstances in which
the Directors of the Company can refuse to register
a transfer of ordinary shares.
Directors and employees of the Group are required
to comply with applicable legislation relating to
dealing in the Company’s shares as well as the
Company’s share dealing rules. These rules restrict
employees’ and Directors’ ability to deal in ordinary
shares at certain times, and require the employee
or Director to obtain permission prior to dealing.
The Directors holding shares are in compliance
with the provision of the share dealing rules.
The Company is not aware of any arrangements
between its shareholders that may result in
restrictions on the transfer of shares and/or
voting rights.
Employee Long-Term Incentive Plan
The Company has adopted a Long-Term Incentive
Plan (the ‘Plan’). In 2022, 2023 and 2024, share
options were granted to the Executive Directors
and certain senior executives of the Company and
also its subsidiaries as selected by the
Remuneration Committee of the Board, but the
Plan gives flexibility for the Company to grant a
range of awards to take account of local legal and
tax requirements and changing policy. In the case
of Directors this will be subject to the current
Directors’ Remuneration Policy.
The Company made awards under the Plan on
October 28, 2022 being within 42 days of
September 20, 2022 in respect of employees and
Executive Directors. In any ten-year period, not
more than 10% of the issued ordinary share capital
of the Company may be issued or be issuable under
the Plan and all other employee share plans
operated by the Company. The Company made an
additional award under the Plan on 3 July 2023
being within 42 days of 20 June 2023 and also on
22 July 2024.
Substantial shareholdings
Details of substantial shareholdings in the
Company are set out in the Corporate governance
report on page 97 of this Annual Report.
Articles of Association
The Company’s Articles of Association were
last amended in June 2022. They may only be
amended by a special resolution of the Company’s
shareholders. The Articles of Association can
be viewed on request to the Company Secretary
at the registered office of the Company.
Going concern
As disclosed in note 2.1.1 of the financial
statements, the Directors have concluded that a
material uncertainty exists that may cast significant
doubt over the Group’s ability to continue as a
going concern. This is due to loan covenant
breaches and potential actions to mitigate them.
However, none of our lenders have called in their
debts in the past three years. Having assessed the
projections, downtrend analysis and mitigations,
senior management and the Directors have a
reasonable expectation that the Group has
adequate resources to continue in operational
existence for the next 13 months from the date
of approval of these consolidated financial
statements, and through to 31 May 2026.
Directors’ responsibility statement
The Directors are responsible for preparing the
annual report and the financial statements in
accordance with applicable United Kingdom law
and regulations.
Company law requires the Directors to prepare
financial statements for each financial year. Under
that law the Directors have elected to prepare
the Group and Parent Company financial
statements in accordance with UK adopted
international accounting standards. Under company
law the Directors must not approve the financial
statements unless they are satisfied that they give
a true and fair view of the state of affairs of the
Group and the Company and of the profit or loss
of the Group and the Company for that period.
In preparing these financial statements the
Directors are required to:
• Select suitable accounting policies in accordance
with IAS 8 Accounting Policies, Changes in
Accounting Estimates and Errors and then apply
them consistently.
• Make judgements and accounting estimates that
are reasonable and prudent.
• Present information, including accounting
policies, in a manner that provides relevant,
reliable, comparable and understandable
information.
• Provide additional disclosures when compliance
with the specific requirements in IFRS is
insufficient to enable users to understand the
impact of particular transactions, other events
and conditions on the Group and Company
financial position and financial performance.
• In respect of the Group financial statements,
state whether UK adopted international
accounting standards have been followed,
subject to any material departures disclosed
and explained in the financial statements.
• In respect of the Parent Company financial
statements, state whether UK adopted
international accounting standards, have been
followed, subject to any material departures
disclosed and explained in the financial
statements.
• Prepare the financial statements on the going
concern basis unless it is appropriate to presume
that the Company and/ or the Group will not
continue in business.
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89 Country Heads
91 Board activities
92 Leadership from the Board
94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
Directors’ report (continued)
The Directors are responsible for keeping adequate
accounting records that are sufficient to show and
explain the Company’s and Group’s transactions
and disclose with reasonable accuracy at any time
the financial position of the Company and the
group and enable them to ensure that the Company
and the Group financial statements comply with
the Companies Act 2006. They are also responsible
for safeguarding the assets of the Group and
Parent Company and group and hence for taking
reasonable steps for the prevention and detection
of fraud and other irregularities.
Under applicable law and regulations, the Directors
are also responsible for preparing a Strategic
Report, Directors’ report, Directors’ Remuneration
report and Corporate Governance statement that
comply with that law and those regulations. The
Directors are responsible for the maintenance and
integrity of the corporate and financial information
included on the Company’s website.
Directors’ responsibility statement (DTR 4.1)
The Directors confirm, to the best of their
knowledge:
• That the consolidated financial statements,
prepared in accordance with UK adopted
international accounting standards, give a true
and fair view of the assets, liabilities, financial
position and profit of the Parent Company and
undertakings included in the consolidation
taken as a whole.
• That the Annual Report, including the strategic
report, includes a fair review of the
development and performance of the business
and the position of the Company and
undertakings included in the consolidation
taken as a whole, together with a description
of the principal risks and uncertainties that
they face.
• That they consider the Annual Report and
accounts, taken as a whole, is fair, balanced and
understandable and provides the information
necessary for shareholders to assess the
Company’s position, performance, business
model and strategy.
Hanny Kemna Rob Keijsers
Chairperson Chief Executive Officer
23 April 2025 23 April 2025
Corporate Governance Statement
The Company is required by the Disclosure and
Transparency Rules and Guidance to prepare
a Corporate Governance Statement including
certain specified information. Information fulfilling
the requirements of the Corporate Governance
Statement can be found in this Directors’ report
and the Corporate governance report, Committee
reports and Directors’ Remuneration Report on
pages 84 to 125 of this Annual Report. This
information is incorporated by reference into this
Directors’ report.
The Company has complied throughout the year
2024 with all provisions of the UK Corporate
Governance Code.
Strategic Report
The Company’s Strategic Report can be found
on pages 01 to 83 of this Annual Report.
Business activities
The Group’s business activities, together with
a description of future developments (including
the factors likely to affect future development and
performance) and its summarised financial position,
are set out in the Strategic Report.
Information on the Company’s employment
practices (including with respect to employee
involvement) and greenhouse gas emissions is set
out on pages 80 and 81 and in the Non-financial
and sustainability information statement on pages
82 and 83 of the Strategic Report.
Significant agreements affected
by a change of control
A change of control of the Company, following
a takeover bid, may cause a number of agreements
to which the Company is party to take effect, alter
or terminate. These include certain credit facility
agreements which include change of
control clauses.
Financial instruments
Details of the Group’s financial instruments can
be found in note 2.2.2 to the financial statements.
The notes begin on page 141.
Financial risk management
The Group has procedures in place to identify,
monitor and evaluate the significant risks it faces.
The Group’s risk management objectives and
policies are described on pages 38 and 39, and the
risks associated with the Group’s financial
instruments are analysed in note 2.2.2 on pages
144 and 145 of the financial statements.
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89 Country Heads
91 Board activities
92 Leadership from the Board
94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
Directors’ report (continued)
Post-balance sheet events
On 16 January 2025, ASA India informed the
Reserve Bank of India of its intention to surrender
its microfinance licence. This decision to surrender
the microfinance licence aligns with the broader
intention of Company to ultimately divest
ASA India.
On 6 March 2025, the Group executed a
USD 15 million loan facility agreement with FMO,
with a maturity date of March 2030. The loan
carries an annual interest rate of SOFR plus a
margin of 3.5%.
On 28 March 2025 Myanmar was hit by a major
earthquake. The direct impact on ASA Myanmar
is limited, however the effect of severe damage
to the infrastructure and the economy on
ASA Myanmar and its clients remains unknown.
Recently, the State Bank of Pakistan has notified all
Microfinance Banks including ASA Pakistan to
prepare and submit a plan for the conversion from
conventional banking to Islamic banking.
ASA Pakistan is preparing the plan.
Political donations
No political donations were made during the year.
Disclosure of information under Listing Rule 9.8.4CR
As required by Listing Rule 9.8.4CR, the table below sets out the location of information required to be
disclosed under Listing Rule 9.8.4 R:
Listing Rule
sub‑section Item Location
9.8.4 (4) Details of any long-term incentive
schemes as required by LR 9.4.3 R
Remuneration Report on pages 110 to 120
9.8.4 (5)-(6) Details of any waiver of emoluments
by a Director
Remuneration Report on page 118
9.8.4 (10) Details of any contract of significance
to which the Company or a subsidiary
is a party and in which a Director or a
controlling shareholder is materially
interested
ASA NGO Bangladesh and AMSL (a wholly
indirectly owned subsidiary of the
Company) entered into a lease agreement
and a services agreement (for the lease of
office spaces and related services) in 2023
9.8.4 (11) Details of any contract for the provision of
services to the Company or a subsidiary by a
controlling shareholder, subsisting during the
period under review, unless the services are
part of the shareholder’s main business
None
9.8.4 (14) Statement that the Relationship Agreement
between the Company and the controlling
shareholder has been complied with
throughout the year
Corporate governance report on page 92
Resolutions at the 2025 AGM
The Company’s AGM will be held on 17 June 2025. Resolutions to be proposed at the AGM include the
election of the Directors and the reappointment of Ernst & Young (‘EY’) as the auditor of the Group.
The full text of each of the resolutions to be proposed at the 2025 AGM will be set out in the Notice
of AGM sent to the Company’s shareholders. A letter from the Chairman and explanatory notes will
accompany the Notice of AGM.
Auditor
The Board (following a recommendation from the
Audit and Risk Committee) has recommended that
EY be reappointed as the Group’s auditor at the
2025 AGM, at which resolutions concerning EY’s
reappointment and authorising the Directors to set
its remuneration will be proposed. The full text of
the relevant resolutions will be set out in the
Notice of AGM sent to the Company’s
shareholders.
Disclosure of information to the auditor
Each of the persons who are Directors at the date
of approval of this Annual Report confirms that:
• So far as the Director is aware, there is no
relevant audit information of which the
Company’s auditor is unaware.
• They have taken all the steps that they ought
to have taken as a Director in order to make
themselves aware of any relevant audit
information and to establish that the Company’s
auditor is aware of that information.
This confirmation is given and should be
interpreted in accordance with the provisions
of section 418 of the Companies Act 2006.
By order of the Board
Prism Cosec
Company Secretary
23 April 2025
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Governance
Strategic report
Corporate governance report
85 Chair’s introduction
86 Board of Directors
88 Executive Committee
89 Country Heads
91 Board activities
92 Leadership from the Board
94 Governance Framework
98 Audit and Risk Committee report
105 Nomination Committee report
109 Remuneration Committee report
121 Independent Directors’ Committee report
121 Disclosure Committee report
122 Directors’ report
Financial statements
Additional information
A return to
sustainable
growth
Financial statements
127 General information
128 Independent auditor’s report
137 Consolidated income statement and statement
of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and other
comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Financial statements
126
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Financial Statements
Strategic report
Corporate governance report
Financial statements
127 General information
128 Independent auditor’s report to the
members of ASA International Group plc
137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
ASA International Group plc
Annual Reports and Accounts 2024
General Information
Registration:
ASA International Group plc is a company registered in England and Wales.
Registered number: 11361159
Company
secretary:
Prism Cosec Limited
Highdown House, Yeoman Way
Worthing, West Sussex BN99 3HH
United Kingdom
Registered office:
Highdown House, Yeoman Way
Worthing, West Sussex BN99 3HH
United Kingdom
Office addresses:
ASA Tower, 10th Floor 23/3,
Bir Uttam A.N.M. Nuruzzaman Sharak
Shyamoli, Dhaka-1207, Bangladesh
Tel: +880 2 8119828, 8110934-35
Rembrandt Tower, 35th floor, Amstelplein 1
1096 HA Amsterdam, The Netherlands
Tel: +31 20 846 3554
Website:
www.asa-international.com
Email address:
Jonathan Berger
Head of Investor Relations
ir@asa-international.com
Auditor:
Ernst & Young LLP
25 Churchill Place
Canary Wharf, London E14 5EY
United Kingdom
Directors Appointed on
Guy Dawson 15 May 2018
Dirk Brouwer 15 May 2018
Johanna Kemna 28 June 2018
Dr. Salehuddin Ahmed 08 December 2020
Karin Kersten
Resigned on:
25 April 2022
01 November 2024
Chris Low 01 February 2023
Rob Keijsers 01 November 2024
Sheila M’Mbijjewe 17 December 2024
Rob Keijsers has been appointed as Group Chief Executive Officer (‘CEO’) effective from 01 April 2025 having
previously been appointed as Interim CEO, in addition to his existing role as Chief Digital and Information
Officer and member of the Board as an Executive Director since 01 November 2024, following the resignation
of Karin Kersten from the position of CEO.
With effect from 01 November 2024, Chris Low stepped up from his Independent Non-Executive Director role
to Executive Chairman and Guy Dawson reverted to being an Independent Non-Executive Director. Following
the appointment of the Group CEO, Chris Low has assumed the role of Non-Executive Chairman effective from
01 April 2025.
Sheila M’Mbijjewe was appointed as an Independent Non-Executive Director with effect from
17 December 2024.
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Financial Statements
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Corporate governance report
Financial statements
127 General information
128 Independent auditor’s report to the
members of ASA International Group plc
137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Independent auditor’s report to the members
of ASA International Group plc
Opinion
In our opinion:
• ASA International Group plc’s Group financial statements and Parent Company financial statements
(the “financial statements”) give a true and fair view of the state of ASA International Group plc
(the ‘Company’ or ‘Parent Company’) and its subsidiaries (together, the ‘Group’) affairs as at
31st December 2024 and of the Group’s and the Parent Company’s profit for the year then ended;
• the financial statements have been properly prepared in accordance with UK adopted international
accounting standards; and
• the financial statements have been prepared in accordance with the requirements of the
Companies Act 2006.
We have audited the financial statements of the Group and Parent Company for the year ended
31 December 2024 which comprise:
Group Parent Company
Consolidated income statement and statement of
comprehensive income for the year then ended
Statutory statement of profit or loss and other
comprehensive income for the year then ended
Consolidated statement of financial position
as at 31 December 2024
Statutory statement of financial position as at 31
December 2024
Consolidated statement of changes in equity for the
year then ended
Statutory statement of changes in equity for the
year then ended
Consolidated statement of cash flows for the year
then ended
Statutory statement of cash flows for the year then
ended
Related notes 1 to 39 to the financial statements,
including material accounting policy information.
Related notes 40 to 47 to the financial statements
including material accounting policy information.
Information marked as ‘audited’ within the
Directors’ Remuneration Report on page 118.
The financial reporting framework that has been applied in their preparation is applicable law and UK
adopted international accounting standards.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK))
and applicable law. Our responsibilities under those standards are further described in the Auditor’s
responsibilities for the audit of the financial statements section of our report. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the Group and Parent in accordance with the ethical requirements that are relevant
to our audit of the financial statements in the UK, including the FRC’s Ethical Standard as applied to listed
public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these
requirements.
The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the Group or
the Parent Company and we remain independent of the Group and the Parent Company in conducting
the audit.
Material uncertainty related to Going Concern
We draw attention to note 2.1.1 in the financial statements, which indicates that the Directors have
assessed the elevated Portfolio at Risk (‘PAR’) ratio across the loan portfolio that have caused breaches
in the Group’s covenants on its borrowings in 2024. The current economic and market conditions across
many of the territories in which the Group operates makes it difficult to assess the potential for future debt
covenant breaches and whether the waivers necessary to avoid the immediate repayment of debt will be
forthcoming. Management plans to divest Group’s investment in ASA India as it is unable to generate
sufficient profits and liquidity. Until the business is fully divested there is uncertainty about how
international lenders will react should the proposed actions fail to materialise. As a result, the Directors
have concluded that this represents a material uncertainty which may cast significant doubt on the Group’s
ability to continue as a going concern.
As stated in note 2.1.1, these events or conditions indicate that a material uncertainty exists that may cast
significant doubt on the Group and Parent Company’s ability to continue as a going concern. Our opinion is
not modified in respect of this matter.
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Financial Statements
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Financial statements
127 General information
128 Independent auditor’s report to the
members of ASA International Group plc
137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Independent auditor’s report to the members
of ASA International Group plc (continued)
In auditing the financial statements, we have concluded that the Directors’ use of the going concern basis
of accounting in the preparation of the financial statements is appropriate. Our evaluation of the Directors’
assessment of the Group and Parent Company’s ability to continue to adopt the going concern basis of
accounting included:
• In conjunction with our walkthrough of the Group’s financial close process, we confirmed our
understanding of the going concern assessment process and also engaged with management early
to ensure relevant key factors were considered in their assessment.
• We considered the period of the going concern assessment which is from the date of approval of
these financial statements to 31 May 2026 and confirmed this with those charged with governance.
• We agreed the Group’s borrowing analysis to supporting evidence, including satisfying ourselves that
there were no material intra-Group liabilities in the form of parental guarantees or letters of support.
• We reviewed debt agreements across the Group in order to establish the existence of covenants and
considered the risk of covenant breaches on the timing of the Group’s debt repayment obligations.
• We established the accuracy and reasonableness of the budget and cashflow forecasts across the
going concern period under normal conditions and under a series of stress and severe stress scenarios,
including performing independent reverse stress testing. From this testing we considered the cash
position in the Group through to 31 May 2026 and compared that to the external debt in the Group,
in order to establish the level of risk associated with covenant breaches and the potential for debt
being called due.
• We reviewed the performance of the Group in 2024 and over recent history, including the historical
impact of the COVID-19 pandemic, global inflationary pressures, natural disasters, and other significant
events impacting the business, in order to assess the historic resilience of the Group to periods of stress.
• We considered whether there were other events subsequent to the balance sheet date which could
have a bearing on the going concern conclusion, including engaging the views of the component audit
teams, reviewing loan arrears analysis, management’s proposed divesture of ASA India and performing
media searches relating to the impact of geo-political issues, and other relevant matters.
• We reviewed the Group’s going concern disclosures included in the Annual Report in order to assess
whether the disclosures were appropriate and in conformity with the accounting standards.
From our evaluation of the Directors’ going concern assessment, we had the following observations:
• As detailed in note 25, the Group had $312.7m of external debt at 31 December 2024 of which $28.2m
had breached loan covenants. The Group have obtained waivers from a number of lenders in order to
reduce the risk associated with debt being called due, of which the waivers amounting to $15.7m do not
cover the complete period through to 31 May 2026. We observed that, should a significant proportion
of the debt be called due at certain points in the going concern assessment period, the Group may have
insufficient cash, at that time, to fund the required repayments.
• The Group continues to face challenges in the collection of outstanding loan balances, particularly with
regard to operations in India, Sierra Leone, Rwanda, Philippines, Nigeria, Sri Lanka, Myanmar, Zambia
and Tanzania. The recoverability of customer loans may be impacted by current economic conditions,
relating to inflationary pressures, which could impact the Group’s ability to remain in compliance with
covenants and settle debt when they become due.
Based on the work we have performed, we concur with the Directors that there are material uncertainties
relating to events or conditions that, individually or collectively, may cast significant doubt on the Group
and Parent Company’s ability to continue as a going concern. The assessment period was to 31 May 2026
and considers at least twelve months from the date of the approval of these financial statements. Going
concern has been determined to be a key audit matter.
In relation to the Group and Parent Company’s reporting on how they have applied the UK Corporate
Governance Code, we have nothing material to add or draw attention to in relation to the directors’
statement in the financial statements about whether the directors considered it appropriate to adopt the
going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in
the relevant sections of this report. However, because not all future events or conditions can be predicted,
this statement is not a guarantee as to the Group’s ability to continue as a going concern.
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Financial Statements
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Financial statements
127 General information
128 Independent auditor’s report to the
members of ASA International Group plc
137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Independent auditor’s report to the members
of ASA International Group plc (continued)
Overview of our audit approach
Audit scope • We performed an audit of the complete financial information of thirteen components
(full-scope) and audit procedures on specific balances for a further four components
(specific-scope).
• We performed central procedures for certain audit areas and balances as outlined in
‘Tailoring the scope’ section of our report.
• The components where we performed full or specific audit procedures accounted for
100.0% of Profit before tax, 99.6% of Revenue and 99.4% of Total assets.
Key audit
matters
• Expected credit loss provisions
• Risk of fraud in revenue recognition through the incorrect recording of revenue
arising from fictitious loans and advances to customers
• Going concern
Materiality • Overall Group materiality of $2.9m (2023: $2.1m) which represents 5% of adjusted
profit before tax (2023: 5% adjusted profit before tax).
An overview of the scope of the Parent Company and Group audits
Tailoring the scope
In the current year our audit scoping has been updated to reflect the new requirements of
ISA (UK) 600 (Revised).
We have followed a risk-based approach when developing our audit approach to obtain sufficient
appropriate audit evidence on which to base our audit opinion. We performed risk assessment procedures,
with input from our component auditors, to identify and assess risks of material misstatement of the Group
financial statements and identified significant accounts and disclosures. When identifying components at
which audit work needed to be performed to respond to the identified risks of material misstatement of the
Group financial statements, we considered our understanding of the Group and its business environment,
the potential impact of climate change, the applicable financial framework, the Group’s system of internal
control at the entity level, the existence of centralised processes, IT application environment and any
relevant internal audit results.
We took a centralised approach to auditing certain processes, as well as the substantive testing of specific
balances. This included audit work over the expected credit loss provisions and going concern key audit
matters outlined later in this report.
We determined that centralised audit procedures can be performed across certain components for other
audit areas including: Hyperinflationary accounting; Deferred taxation; Derivative financial instrument
valuations; Lease accounting; and Climate risk.
We identified seventeen components in seventeen countries as individually relevant to the Group due a
significant risk or an area of higher assessed risk of material misstatement of the Group financial statements
being associated with the components, or due to financial size of the component relative to the Group.
For those individually relevant components, we identified the significant accounts where audit work
needed to be performed at these components by applying professional judgement, having considered the
Group significant accounts on which centralised procedures are performed, the reasons for identifying
the financial reporting component as an individually relevant component and the size of the component’s
account balance relative to the Group significant financial statement account balance.
We then considered whether the remaining Group significant account balances that are not subject to audit
procedures, in aggregate, could give rise to a risk of material misstatement of the Group financial statements.
Having identified the components for which work will be performed, we determined the scope to assign to
each component.
There are twenty-seven components in the Group of which seventeen components are in-scope.
We designed and performed audit procedures on the entire financial information of thirteen components
(“full scope components”). For four components, we designed and performed audit procedures on specific
significant financial statement account balances or disclosures of the financial information of the
component (“specific scope components”). There has been no change in scoping of components of the
Group since the 31 December 2023 audit.
The reporting components where we performed audit procedures accounted for 100.0% (2023: 98.8%)
of the Group’s Profit before tax, 99.7% (2023: 98.7%) of the Group’s Profit before tax when using absolute
values, 99.6% (2023: 98.1%) of the Group’s Revenue and 99.4% (2023: 98.9%) of the Group’s Total assets.
The full scope components contributed 99.3% (2023: 95.8%) of the Group’s Profit before tax, 97.7%
(2023: 96.4%) of the Group’s Profit before tax when using absolute values, 94.1% (2023: 92.5%) of the
Group’s Revenue and 96.3% (2023: 95.5%) of the Group’s Total assets.
Of the remaining components that together represent less than 0.1% of the Group’s Profit before tax, none
is individually greater than 5% of the Group’s profit before tax. For these components, we performed other
procedures, including analytical review, testing of consolidation journals and intercompany eliminations and
foreign currency translation recalculations, to respond to any potential risks of material misstatement to
the Group financial statements.
Our scoping to address the risk of material misstatement for each key audit matter is set out in the
Key audit matters section of our report.
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Financial statements
127 General information
128 Independent auditor’s report to the
members of ASA International Group plc
137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Independent auditor’s report to the members
of ASA International Group plc (continued)
Involvement with component teams
In establishing our overall approach to the Group audit, we determined the type of work that needed
to be undertaken at each of the components by us, as the primary audit team, or by component auditors
operating under our instruction. All components of the Group were audited by EY global network firms.
Of the thirteen full scope components, audit procedures were performed on four of these directly by the
primary audit team. For the remaining nine full scope components, where the work was performed by
component auditors, we determined the appropriate level of involvement to enable us to determine that
sufficient audit evidence had been obtained as a basis for our opinion on the Group as a whole.
The Group audit team continued to follow a programme of planned visits on a rotation risk-based approach
and led a number of video conference calls. The Senior Statutory Auditor and senior members of the Group
audit team visited Ghana, Kenya, Tanzania, Pakistan, Bangladesh, Sri Lanka and the Philippines. During
these visits we attended meetings with management, met borrower groups where possible, and held
discussions on the audit approach, conducted review of component work papers, and discussed any issues
arising from the audit work with component teams. In addition to the component visits, and for where
visits were not undertaken, the Group audit team implemented a programme of oversight and involvement
which included the following activities:
• Issued detailed audit instructions;
• Held a Group audit conference, including the primary team and all component teams, to discuss the plan
for the audit, including but not limited to; significant risk areas and other areas of focus, independence
procedures, materiality levels, updates from component territories, laws and regulations, and going
concern procedures;
• Held planning, execution and conclusion video conference meetings with components, including
meetings with component management where relevant, in order to direct and supervise the work
performed and conclude;
• Interacted regularly with component teams through each phase of the audit to supervise audit progress,
provide direction and validate the results and conclusions reached; and
• Reviewed component reporting documents and key working papers.
This, together with the additional procedures performed at Group level, gave us appropriate evidence
for our opinion on the Group financial statements.
Climate change
Stakeholders are increasingly interested in how climate change will impact the Group. The Group has
determined that the most significant future impacts from climate change on their operations will be from
the potential impact of natural disasters and weather events impacting the recoverability of loans and
advances to customers. These are explained on pages 65 to 79 in the required Task Force On Climate
Related Financial Disclosures and on pages 40 to 48 in the principal risks and uncertainties. All of these
disclosures form part of the “Other information,” rather than the audited financial statements. Our
procedures on these unaudited disclosures therefore consisted solely of considering whether they are
materially inconsistent with the financial statements or our knowledge obtained in the course of the audit
or otherwise appear to be materially misstated, in line with our responsibilities on “Other information”.
In planning and performing our audit we assessed the potential impacts of climate change on the Group’s
business and any consequential material impact on its financial statements.
The Group has explained in note 2.1.3 how climate change has been reflected in the financial statements.
These disclosures also explain where governmental and societal responses to climate change risks are still
developing, and where the degree of certainty of these changes means that they cannot be taken into
account when determining asset and liability valuations under the requirements of UK adopted
international accounting standards. As noted in note 2.5.1F, the Group has identified the expected credit
loss provision as one of the main areas in which it could be exposed to the financial impacts of climate
change risk as a number of the Group’s operating areas are prone to natural disasters such as typhoons,
flash floods or droughts.
Our audit effort in considering the impact of climate change on the financial statements was focused on
evaluating management’s assessment of the impact of climate risk, physical and transitional, the Group’s
climate related disclosures, the potential effects of material climate risks and the significant judgements
and estimates disclosed in note 2.1 and whether these have been appropriately reflected in asset values
where these are impacted by future cash flows, and in the timing and nature of liabilities recognised,
following the requirements of UK adopted international accounting standards. As part of this evaluation
we performed our own risk assessment, supported by our climate change internal specialists, to determine
the risks of material misstatement in the financial statements from climate change which needed to be
considered in our audit.
We also challenged the Directors’ considerations of climate change risks in their assessment of going
concern and viability and associated disclosures. Where considerations of climate change were relevant
to our assessment of going concern, these are described above.
Based on our work we have not identified the impact of climate change on the financial statements to be
a key audit matter or to impact a key audit matter.
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Financial statements
127 General information
128 Independent auditor’s report to the
members of ASA International Group plc
137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Independent auditor’s report to the members
of ASA International Group plc (continued)
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material
misstatement (whether or not due to fraud) that we identified. These matters included those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing the efforts
of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in our opinion thereon, and we do not provide a separate opinion on these matters.
In addition to the matters set out below, we identified going concern as a key audit matter and have set out the procedures we conducted to address this and our conclusions in the Material uncertainty related to
Going Concern section above.
Risk Our response to the risk
Key observations communicated to the
Audit and Risk Committee
How we scoped our audit to respond to the
risk and involvement with component teams
Expected credit loss provisions (2024: $10.1m, 2023: $6.9m)
Refer to the Audit and Risk Committee Report (page 101);
Accounting policies (page 153); and Note 13.3 of the Consolidated
Financial Statements (page 169)
Expected credit loss (ECL) provisions under IFRS 9 is an
accounting estimate that carries a high degree of uncertainty
driven by judgemental assumptions, including historical loss
rates, their application to the outstanding loan portfolio,
forward looking factors, the application of model overlays
(post-model adjustments) to capture unmodelled risk, and
the impact of the economic uncertainty, natural disasters
or governmental interventions on these assumptions.
The vast majority of the Group’s lending is short-term, low in
value, unsecured (except for security deposits paid in certain
territories) and to women in developing economies in order
to start and grow their businesses. The impact of ongoing
economic and political uncertainty in certain countries has
impaired the ability of the Group to distribute and collect loans
made to borrowers, which has resulted in increased risk in
certain countries in which the Group operates.
The inherent ability of management to override internal controls
in relation to loan impairment provisions, combined with the
subjectivity of the provisions, represents a risk of fraud.
The identification of expected credit loss provisions as a
key audit matter remains consistent with the prior year audit.
We involved credit risk modelling specialists to assist in testing
the appropriateness of the model and model assumptions.
This testing included:
• Independent recalculation of the loan impairment provision including
the allocation of loans into stages.
• Sensitivity analysis of the assumptions used by management including
back-testing of the provision to evaluate the accuracy of management’s
estimation process and assess for evidence of management bias.
• Reviewing key model assumptions including the loss rates and the
application of loss rate to loans present at the balance sheet date.
• Assessing whether indications of model weakness exist which could
reasonably give rise to a material misstatement in the ECL estimate.
In order to further challenge the reasonableness of the ECL recorded by
management, we produced an independent challenger model using the
complete loan portfolio and auditor-defined assumptions. This challenger
model included the consideration of the completeness and accuracy of
model overlays, including forward-looking factors, through a review of post
balance sheet events and a consideration of historical loss patterns.
We evaluated the criteria used to allocate a financial asset to stage 1, 2 or 3
in accordance with IFRS 9.
We performed a test of the dataflows into the ECL model, including the
arrears, last payment date, write-off and recoveries data.
We inquired of management and reviewed the minutes of Board and other
key meetings in order to identify if any specific events or circumstances
exist which may trigger the need for incremental provisions.
We communicated that we are
satisfied that ECL provisions
were reasonable and in
compliance with IFRS 9.
We also highlighted to the
Audit and Risk Committee that
uncertainty remains in determining
forecast losses due to the ongoing
impact of economic uncertainty.
Finally, we concluded that
disclosures relating to loan
impairments were in compliance
with the requirements of UK
adopted international accounting
standards.
For the purposes of determining the
scope of work to be conducted
centrally and by component teams,
we considered the credit loss
provisioning process undertaken by
the Group. The ECL calculation is
performed centrally, and as such was
audited centrally by the primary team
with the support of EY Specialists.
Nine full-scope components and four
specific-scope components were
instructed to perform data input
testing over the data relevant to the
ECL calculations. Throughout the
performance of component team
audit procedures, the central team
maintained oversight through regular
meetings and detailed reviews of the
component team workpapers.
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127 General information
128 Independent auditor’s report to the
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137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Independent auditor’s report to the members
of ASA International Group plc (continued)
Risk Our response to the risk
Key observations communicated to the
Audit and Risk Committee
How we scoped our audit to respond to the
risk and involvement with component teams
Risk of fraud in revenue recognition through the incorrect
recording of revenue arising from fictitious loans and
advances to customers (2024: $187.8m, 2023: $135.7m)
Refer to the Audit and Risk Committee Report (page 101);
Accounting policies (page 147); and Note 4.1 of the Consolidated
Financial Statements (page 163)
The income recognised may be fraudulently misstated due to
the incorrect recording of interest income arising from loans
being disbursed to fictitious borrowers, or otherwise
fraudulently recorded, in order to manipulate income or
disguise losses.
The heightened volume of impaired loans also increases the
complexity in the recording of interest income.
The identification of risk of fraud in revenue recognition as a
key audit matter remains consistent with the prior year audit.
For a sample of loans across the operating nine full scope and four
specific scope components, which covered 99.6% of the risk amount,
we independently recalculated the interest income using contractual terms
from borrower agreements and agreed them through to the amounts
recorded in the financial statements. This testing included a calculation
of the impact of payment deferrals and payment moratoria on the recording
of income under IFRS 9.
For a sample of borrowers across the nine full scope and four specific
scope components we attended the borrower group meetings, where
the borrowers meet periodically as a group to make scheduled payments,
and physically verified the identity of the borrowers and traced the loan
outstanding balance per the borrower’s passbook to the accounting
records. Where it was not possible to perform physical verification of
borrowers in person, due to the impact of localised restrictions, borrower
existence was tested through alternative means, including video conference
and phone calls.
We also performed an independent calculation of income recorded on
IFRS 9 stage 3 loans and compared it to that recorded by Management.
Additionally, substantive analytical procedures were performed centrally
to gain further assurance over interest recognition.
We reported to the Audit and Risk
Committee our conclusion that the
recording of interest income was
found to be materially accurate.
From our test of income recorded
on impaired loans we reported
to the Audit and Risk Committee
that the balance was materially
accurate.
Our audit procedures did not
identify evidence of fraud in the
recognition of revenue.
We performed quantitative analysis
of the composition of the Group’s
interest revenue, identifying thirteen
material operating entities. Nine
full-scope components and four
specific-scope components were then
instructed to perform substantive
testing procedures, covering 100%
of the risk amount. Throughout the
performance of component team
audit procedures, the central team
maintained oversight through regular
meetings and detailed reviews of the
component team workpapers.
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137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Independent auditor’s report to the members
of ASA International Group plc (continued)
Our application of materiality
We apply the concept of materiality in planning and performing the audit, in evaluating the effect
of identified misstatements on the audit and in forming our audit opinion.
Materiality
The magnitude of an omission or misstatement that, individually or in the aggregate, could reasonably
be expected to influence the economic decisions of the users of the financial statements. Materiality
provides a basis for determining the nature and extent of our audit procedures.
We determined materiality for the Group to be $2.9 million (2023: $2.1 million), which is 5% (2023: 5%)
of adjusted profit before tax. We believe that adjusted profit before tax provides us with the most
appropriate basis for materiality given the Group is a profit orientated entity. We adjusted the Group’s
pre-tax profit for the impact of hyperinflationary accounting per IAS 29 where the impact is not pervasive
across the Group and for the gain recognised on re-assignment of an ASA Myanmar loan which we consider
to be non-recurring in nature.
We determined materiality for the Parent Company to be $0.6m (2023: $0.7m), which is 5% (2023: 5%)
of total assets. We consider that, in respect of the Parent Company, total assets is most relevant to the
stakeholders and representative of the economic size of the entity and, as such, provides us with an
appropriate basis for determining the nature, timing and extent of risk assessment procedures, identifying
and assessing the risk of material misstatement and determining the nature, timing and extent of further
audit procedures.
During the course of our audit, we reassessed initial materiality. This assessment resulted in a higher final
materiality calculated based on the actual financial performance of the Group for the year.
Performance materiality
The application of materiality at the individual account or balance level. It is set at an amount to reduce to
an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements
exceeds materiality.
On the basis of our risk assessments, together with our assessment of the Group’s overall control
environment, our judgement was that performance materiality was 50% (2023: 50%) of our planning
materiality, namely $1.46m (2023: $1.10m). We have set performance materiality at this percentage
(which is at the lowest end of the range of our audit methodology) based on various considerations
including the past history of misstatements and the effectiveness of the control environment.
Audit work was undertaken at component locations for the purpose of responding to the assessed risks
of material misstatement of the Group financial statements. The performance materiality set for each
component is based on the relative scale and risk of the component to the Group as a whole and our
assessment of the risk of misstatement at that component. In the current year, the range of performance
materiality allocated to components was $0.23m to $0.62m (2023: $0.22m to $0.51m). The performance
materiality for the Parent Company was $0.3m (2023: $0.4m).
Reporting threshold
An amount below which identified misstatements are considered as being clearly trivial.
We agreed with the Audit and Risk Committee that we would report to them all uncorrected audit
differences in excess of $0.14m (2023: $0.11m), which is set at 5% of planning materiality, as well
as differences below that threshold that, in our view, warranted reporting on qualitative grounds.
The reporting threshold for the Parent Company was $0.03m (2023: $0.04m).
We evaluate any uncorrected misstatements against both the quantitative measures of materiality
discussed above and in light of other relevant qualitative considerations in forming our opinion.
Other information
The other information comprises the information included in the annual report other than the financial
statements and our auditor’s report thereon, including the Strategic Report on pages 01 to 83, the
Governance Report on pages 84 to 125 and Additional Information on pages 205 to 209. The directors
are responsible for the other information contained within the annual report.
Our opinion on the financial statements does not cover the other information and, except to the extent
otherwise explicitly stated in this report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information
is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit
or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent
material misstatements, we are required to determine whether this gives rise to a material misstatement in
the financial statements themselves. If, based on the work we have performed, we conclude that there is a
material misstatement of the other information, we are required to report that fact.
We have nothing to report in this regard.
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137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Independent auditor’s report to the members
of ASA International Group plc (continued)
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, the part of the directors’ remuneration report to be audited has been properly prepared
in accordance with the Companies Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
• the information given in the strategic report and the directors’ report for the financial year for which
the financial statements are prepared is consistent with the financial statements; and
• the strategic report and the directors’ report have been prepared in accordance with applicable
legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Group and the Parent Company and its environment
obtained in the course of the audit, we have not identified material misstatements in the strategic report or
the directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006
requires us to report to you if, in our opinion:
• adequate accounting records have not been kept by the Parent Company, or returns adequate
for our audit have not been received from branches not visited by us; or
• the Parent Company financial statements and the part of the Directors’ Remuneration Report
to be audited are not in agreement with the accounting records and returns; or
• certain disclosures of directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
Corporate Governance Statement
We have reviewed the directors’ statement in relation to going concern, longer-term viability and that
part of the Corporate Governance Statement relating to the Group and Company’s compliance with the
provisions of the UK Corporate Governance Code specified for our review by the UK Listing Rules.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements
of the Corporate Governance Statement is materially consistent with the financial statements or our
knowledge obtained during the audit:
• Directors’ statement with regards to the appropriateness of adopting the going concern basis
of accounting and any material uncertainties identified set out on page 123;
• Directors’ explanation as to its assessment of the Company’s prospects, the period this assessment
covers and why the period is appropriate set out on page 104;
• Directors’ statement on whether it has a reasonable expectation that the Group will be able to continue
in operation and meets its liabilities set out on page 104;
• Directors’ statement on fair, balanced and understandable set out on page 124;
• Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks
set out on page 104;
• The section of the annual report that describes the review of effectiveness of risk management
and internal control systems set out on pages 102 to 104; and
• The section describing the work of the Audit and Risk Committee set out on pages 98 to 104.
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement set out on pages 123 to 124, the directors
are responsible for the preparation of the financial statements and for being satisfied that they give a true
and fair view, and for such internal control as the directors determine is necessary to enable the preparation
of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Group and Parent
Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless the directors either intend to liquidate the Group or
the Parent Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.
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137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Independent auditor’s report to the members
of ASA International Group plc (continued)
Explanation as to what extent the audit was considered capable of detecting irregularities,
including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud.
The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting
one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or
intentional misrepresentations, or through collusion. The extent to which our procedures are capable
of detecting irregularities, including fraud is detailed below.
However, the primary responsibility for the prevention and detection of fraud rests with both those
charged with governance of the Company and management.
• We obtained an understanding of the legal and regulatory frameworks that are applicable to the Group
and determined that the most significant are:
– Financial Conduct Authority (‘UK Listing Authority’ or UKLA’) Listing Rules;
– Companies Act 2006; and
– Legal and regulatory frameworks in operation in the countries in which the Group operates.
• We understood how ASA International Group plc is complying with those frameworks by making
enquiries of Management, internal audit, and those responsible for legal and compliance matters.
We also reviewed correspondence between the Group and its regulators; reviewed minutes of
the key committee meetings and gained an understanding of the Group’s approach to governance,
demonstrated by the Board’s approval of the Group’s governance framework, and the Board’s review
of the Group’s risk management framework (‘RMF’) and internal control processes.
• The primary team held discussions with each of the component teams during our Group Audit
Conference, and reviewed their component reporting to us, in order to understand the applicable
legal and regulatory frameworks at a component level and how the Group complies with these.
• We assessed the susceptibility of the Group’s financial statements to material misstatement, including
how fraud might occur by holding discussions with senior management, internal audit and the Audit
and Risk Committee and through an analysis of financial reporting information and areas of estimation
which could be subject to manipulation. We considered the risk of fraud through management override
of internal controls, revenue recognition and in the specific Key Audit Matters for loan impairment
provisions and designed audit procedures to address these risks.
• Based on this understanding we designed our audit procedures to identify non-compliance with
such laws and regulations. Our procedures involved enquiries of the legal team, the Audit and Risk
Committee, senior management, internal audit and the review of reports prepared by internal audit,
legal and compliance and the Group’s Fraud and Misappropriation Unit. We also reviewed the
whistleblowing reports presented to the Group’s Audit and Risk Committee throughout the year.
In order to further consider legal and regulatory compliance at a component level, we instructed
each component audit team to report to us any instances of non-compliance with laws and regulations
to which they had become aware.
• The Group operates in the financial services industry, which is a highly regulated environment.
As such, the Senior Statutory Auditor considered the experience and expertise of the engagement team,
including auditor’s specialists, to ensure that the team had the appropriate competence and capabilities,
which included the use of specialists where appropriate.
• For instances of actual or suspected non-compliance with laws and regulations, which have a material
impact on the financial statements, these were communicated by management to the Group audit
engagement team and component teams (where applicable) who performed audit procedures such
as inquiries with management, sending confirmations to external legal counsel, substantive testing
and meeting with regulators.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at https://www.frc.org.uk/auditorsresponsibilities. This description
forms part of our auditor’s report.
Other matters we are required to address
• Following the recommendation from the Audit and Risk Committee we were appointed by the Company
on 12 July 2018 to audit the financial statements for the year ending 31 December 2018 and subsequent
financial periods. The period of total uninterrupted engagement including previous renewals and
reappointments is seven years, covering the years ending 31 December 2018 to 31 December 2024.
• The audit opinion is consistent with the additional report to the Audit and Risk Committee.
Use of our report
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16
of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s
members those matters we are required to state to them in an auditor’s report and for no other purpose.
To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than
the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions
we have formed.
Hitesh Patel (Senior statutory auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor
London
23 April 2025
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127 General information
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137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Consolidated income statement and statement of comprehensive income
for the year ended 31 December 2024
| 2024 | 2023 | 2024 | 2023 | ||||
| Notes | USD’000 | USD’000 | Notes | USD’000 | USD’000 | ||
| Interest income calculated using the effective interest | Profit for the period attributable to: | ||||||
method | 4.1 | Equity holders of the parent | 29,249 | 9,206 | |||
Other interest and similar income | 4.2 | Non-controlling interest | (716) | (449) | |||
Interest and similar income | 28,533 | 8,757 | |||||
Interest and similar expense | 5 | ( | ( | ||||
Net interest income | |||||||
Other operating income | 6 | ||||||
Total operating income | |||||||
Credit loss expense | 7 | ( | ( | ||||
Net operating income | |||||||
Personnel expenses | 8 | ( | ( | ||||
Depreciation on property and equipment | 16 | ( | ( | ||||
Amortisation on intangible assets | 20 | ( | |||||
Depreciation on right-of-use assets | 17 | ( | ( | ||||
Other operating expenses | 9 | ( | ( | ||||
Exchange rate differences | 10 | ( | ( | ||||
Loss on net monetary position | 2.5.8 | ( | ( | ||||
Total operating expenses | ( | ( | |||||
Profit before tax | |||||||
Income tax expense | 11 | ( | ( | ||||
Withholding tax expense | 11.7 | ( | ( | ||||
Profit for the period |
| Other comprehensive income: | |||
| Foreign currency exchange differences on translation | |||
of foreign operations | 24 | ( | ( |
Movement in hedge accounting reserve | 23 | ( | ( |
Tax on OCI and other items | |||
| Total other comprehensive loss to be reclassified to profit | |||
or loss in subsequent periods, net of tax | ( | ( | |
Gain on revaluation of MFX investment | 15 | ||
Actuarial gain on defined benefit liabilities | 8.1 | ( | |
Total other comprehensive income/(loss) not to be reclassified to profit or loss in subsequent periods, net of tax | ( | ||
Total comprehensive income/(loss) for the period, net of tax | ( | ||
| Total comprehensive income/(loss) attributable to: | |||
Equity holders of the parent | ( | ||
Non-controlling interest | ( | ( | |
22,070 | (16,011) | ||
Earnings per share | 39 | USD | USD |
| Equity shareholders of the parent for the period: | |||
Basic earnings per share | |||
Diluted earnings per share |
The notes 1 to 39 form an integral part of these financial statements.
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137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
| Consolidated statement of financial position | |||
| as at 31 December 2024 | |||
| 2024 | 2023 | ||
| Notes | USD’000 | USD’000 | |
| Assets | |||
Cash at bank and in hand | 12 | ||
Loans and advances to customers | 13 | ||
Due from banks | 14 | ||
Equity investments at Fair Value through Other Comprehensive Income (‘FVOCI’) | 15 | ||
Property and equipment | 16 | ||
Right-of-use assets | 17 | ||
Deferred tax assets | 11.2 | ||
Other assets | 18 | ||
Derivative assets | 19 | ||
Intangible assets | 20 | ||
Total assets | |||
| Equity and liabilities | |||
| Equity | |||
Issued capital | 21 | ||
Retained earnings | 22 | ||
Other reserves | 23 | ||
Foreign currency translation reserve | 24 | ( | ( |
Total equity attributable to equity holders of the parent | |||
Total equity attributable to non-controlling interest | 32.6 | ( | ( |
Total equity |
| 2024 | 2023 | ||
| Notes | USD’000 | USD’000 | |
| Liabilities | |||
Debt issued and other borrowed funds | 25 | ||
Due to customers | 26 | ||
Retirement benefit liability | 8.1 | ||
Current tax liability | 11.1 | ||
Deferred tax liability | 11.3 | ||
Lease liabilities | 17 | ||
Derivative liabilities | 19 | ||
Other liabilities | 27 | ||
Provisions | 28 | ||
Total liabilities | |||
Total equity and liabilities |
Approved by the Board of Directors on 23 April 2025.
Signed on behalf of the Board
Rob Keijsers Tanwir Rahman
CEO CFO
The notes 1 to 39 form an integral part of these financial statements.
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128 Independent auditor’s report to the
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137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
| Consolidated statement of changes in equity | ||||||
| for the year ended 31 December 2024 | ||||||
| Foreign currency | ||||||
| Retained | translation | Non-controlling | ||||
| Issued capital | earnings | Other reserves | reserve | interest | Total | |
| USD’000 | USD’000 | USD’000 | USD’000 | USD’000 | USD’000 | |
At 1 January 2023 | ( | ( | ||||
Impact of loan reclassification at Fair Value Through Profit and Loss (‘FVTPL’) | ||||||
Impact of IAS 29 (hyperinflation) | – | – | – | 256 | – | 256 |
Profit for the year | ( | |||||
Share-based payments | ||||||
| Other comprehensive income: | ||||||
Actuarial gains/(losses) on defined benefit liabilities | ||||||
Foreign currency translation of assets and liabilities of subsidiaries | ( | ( | ( | |||
Movement in hedge accounting reserve | ( | ( | ||||
Tax on OCI and others | ( | 825 | ||||
Total comprehensive income/(loss) for the period | ( | ( | ( | (15,699) | ||
At 31 December 2023 | ( | ( |
At 1 January 2024 | ( | ( | ||||
Profit for the year | ( | |||||
Share-based payments | ||||||
| Other comprehensive income: | ||||||
Actuarial gains/(losses) on defined benefit liabilities | ( | ( | ||||
Foreign currency translation of assets and liabilities of subsidiaries | ( | ( | ( | |||
Movement in hedge accounting reserve | ( | ( | ||||
Tax on OCI and others | 1,307 | |||||
Total comprehensive income/(loss) for the period | ( | ( | ( | 22,833 | ||
Dividend | ( | ( | ||||
At 31 December 2024 | ( | ( |
The notes 1 to 39 form an integral part of these financial statements.
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137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
| Consolidated statement of cash flows | |||
| for the year ended 31 December 2024 | |||
| 2024 | 2023 | ||
| Notes | USD’000 | USD’000 | |
| Operating activities | |||
Profit before tax | |||
| Adjustment for movement in: | |||
Operating assets | 29.1 | ( | ( |
Operating liabilities | 29.2 | ||
Non-cash items | 29.3 | ||
Income tax paid | ( | ( | |
Net cash flows (used in) operating activities | ( | ( | |
| Investing activities | |||
Purchase of property and equipment | 16 | ( | ( |
Proceeds from sale of property and equipment | ( | ||
Purchase of Intangible assets | ( | ( | |
Net cash flows (used in) investing activities | ( | ( | |
| Financing activities | |||
Proceeds from debt issued and other borrowed funds | |||
Payments of debt issued and other borrowed funds | ( | ( | |
Payment of lease liabilities | ( | ( | |
Dividend paid | (2,952) | – | |
Net cash flows from financing activities | |||
Cash and cash equivalents at 1 January | |||
Net increase in cash and cash equivalents | |||
Impact of IAS 29 (hyperinflation) | (609) | (593) | |
Foreign exchange difference on cash and cash equivalents | ( | ( | |
Cash and cash equivalents at 31 December | 12 | ||
| Operational cash flows from interest | |||
Interest received | |||
Interest paid |
Amounts reported above may differ from the actual underlying cash flows on the date of the transaction as they have been adjusted due to the impact of accounting for the effects of the subsidiaries in Ghana
and Sierra Leone operating in hyperinflationary economies.
The notes 1 to 39 form an integral part of these financial statements.
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137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
1. Corporate information
registration number 11361159 in England and Wales . The entity was incorporated by Catalyst Microfinance
Investors (‘CMI’) on 14 May 2018 for the purpose of the initial public offer of ASA International Holding.
ASA International Group plc acquired 100% of the shares in ASA International Holding and all its
subsidiaries on 13 July 2018 in exchange for the issue of 100 million shares in ASA International Group plc
with a nominal value of GBP 1.00 each (value per share of GBP 0.01 each after capital reduction).
ASA International Group plc has a listing on the Main Market of the London Stock Exchange, within the
equity shares (commercial companies) category.
Investment strategy
Abbreviation list
Definitions Abbreviation
A1 Nigeria Consultancy Limited A1 Nigeria
ASA Dwaso Limited ASA Dwaso
ASA International Group plc ASAIG
ASA International Holding ASAIH
ASA International Group plc Employee Benefit Trust ASAIG plc EBT
ASA International India Microfinance Limited ASA India
ASA International (Kenya) Limited
(formerly ‘ASA International Microfinance (Kenya) Limited’) ASA Kenya
ASA International N.V. ASAI NV
ASA Lanka Private Limited ASA Lanka
ASA Microfinance (Myanmar) Limited ASA Myanmar
ASA Microfinance (Rwanda) Limited ASA Rwanda
ASA Microfinance (Sierra Leone) ASA Sierra Leone
ASA Microfinance (Zanzibar) Limited ASA Zanzibar
ASA Microfinance (Tanzania) Limited ASA Tanzania
ASA Microfinance (Uganda) Limited ASA Uganda
ASA Microfinance Zambia Limited ASA Zambia
ASA NGO-MFI registered in Bangladesh ASA NGO Bangladesh
ASA Microfinance Bank (Pakistan) Limited ASA Pakistan
ASA Savings & Loans Limited ASA S&L
ASHA Microfinance Bank Limited ASA Nigeria
ASAI Investments & Management B.V ASAI I&M
ASAI Management Services Limited AMSL
Definitions Abbreviation
Association for Social Improvement and Economic Advancement ASIEA
C.M.I. Lanka Holding (Private) Limited CMI Lanka
Catalyst Continuity Limited Catalyst Continuity
Catalyst Microfinance Investment Company CMIC
Catalyst Microfinance Investors CMI
Corporate Social Responsibility CSR
CMI International Holding CMII
Lak Jaya Micro Finance Limited Lak Jaya
Pagasa ng Masang Pinoy Microfinance, Inc Pagasa
PagASA ng Pinoy Mutual Benefit Association, Inc. MBA Philippines
Pagasa Consultancy Limited Pagasa Consultancy
Pagasa Philippines Finance Corporation PPFC
Pagasa Philippines Finance Corporation and Pagasa ng Masang Pinoy
Microfinance, Inc Pagasa Philippines
Pinoy Consultancy Limited Pinoy
PT PAGASA Consultancy PT PAGASA Consultancy
Microfinance Institution MFI
Reserve Bank of India RBI
State Bank of India SBI
Standard & Poor’s S&P
Sequoia B.V. Sequoia
Notes to the consolidated financial statements
for the year ended 31 December 2024
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128 Independent auditor’s report to the
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137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
2. Material accounting policies
2.1 General
the following accounting policies to all periods presented in these consolidated financial statements, except
for as mentioned in Section 2.3.
ASA International continued applying hyperinflation accounting for its operations in Ghana and Sierra
Leone in 2024 as the three-year cumulative inflation in both countries exceeded 100%. For more
information refer to note 2.5.8 ‘Hyperinflation’.
the Company’s owners or others do not have the power to amend the financial statements.
2.1.1 Basis of preparation
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137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
2. Material accounting policies (continued)
2.1.1 Basis of preparation (continued)
2.1.2 Statement of compliance
The preparation of the consolidated financial statements in conformity with IFRS requires senior
management to make judgements, estimates and assumptions that affect the application of accounting
policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ
from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis.
143
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137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
2. Material accounting policies (continued)
2.1.3 Consideration of climate change
In preparing these financial statements, the Group has given consideration to the recommendations laid
out by the Task Force on Climate-related Financial Disclosures (‘TCFD’) and the requirements as per section
414CB of the Companies Act 2006. The relevant assessment of the climate-related risks outlined in the
Group’s Annual Report on page 65 has been incorporated into judgements associated with recognition,
measurement, presentation and disclosure, where so permitted by UK adopted IAS. The accounting
judgements relating to climate change are presented in note 2.5.1(F) and note 30.6.
While there is currently no significant impact expected from climate change, the Directors are aware of the
constant evolving risks attached to climate change and will regularly assess these risks against judgements
and estimates made in preparation of the financial statements.
2.1.4 Basis of consolidation
2.2 Summary of material accounting policies
The principal accounting policies applied in the preparation of these consolidated financial statements are
set out below:
2.2.1 Foreign currency translation
2.2.2 Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability
or equity instrument of another entity.
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137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
2. Material accounting policies (continued)
2.2 Summary of material accounting policies (continued)
2.2.2 Financial instruments (continued)
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137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
2. Material accounting policies (continued)
2.2 Summary of material accounting policies (continued)
2.2.2 Financial instruments (continued)
2.2.3 Financial liabilities – Initial recognition and subsequent measurement
Financial liabilities at amortised cost
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137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
2. Material accounting policies (continued)
2.2 Summary of material accounting policies (continued)
2.2.3 Financial liabilities – Initial recognition and subsequent measurement (continued)
(2) Subsequent measurement (continued)
2.2.5 Recognition of income and expenses
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group
and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration
received or receivable, considering contractually defined terms of payment and excluding taxes or duties.
The Group has concluded that it is principal in all of its revenue arrangements except for loans under the
Business Correspondence (‘BC’) model where the Group works as an agent.
The following specific recognition criteria must also be met before revenue is recognised:
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137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
2. Material accounting policies (continued)
2.2 Summary of material accounting policies (continued)
2.2.8 Taxes
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137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
2. Material accounting policies (continued)
2.2 Summary of material accounting policies (continued)
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137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
2. Material accounting policies (continued)
2.2 Summary of material accounting policies (continued)
2.2.14 Liability for death and multipurpose risk funds
The Group collected 1–2% of disbursed loan amounts for death risk funds or multipurpose risk funds in
certain markets (the Philippines, Uganda, Kenya and Sri Lanka). These funds covered settlement of the
outstanding loan amount and other financial assistance when the borrower died or was affected by natural
calamities. The collected amounts are recognised upfront as income and a liability was recognised in the
statement of financial position for the claims resulting from these funds. Reference was made to note 2.5.3
on the key judgement used. The death risk fund or multipurpose risk fund were no longer included in new
loan contracts from August 2023 in Uganda, September 2023 in the Philippines, December 2023 in Kenya
and January 2024 in Sri Lanka.
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137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
2. Material accounting policies (continued)
2.2 Summary of material accounting policies (continued)
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137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
2. Material accounting policies (continued)
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137 Consolidated income statement and
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138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
2. Material accounting policies (continued)
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137 Consolidated income statement and
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138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
2. Material accounting policies (continued)
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137 Consolidated income statement and
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138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
2. Material accounting policies (continued)
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137 Consolidated income statement and
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138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
2. Material accounting policies (continued)
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137 Consolidated income statement and
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138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
2. Material accounting policies (continued)
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137 Consolidated income statement and
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138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
2. Material accounting policies (continued)
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137 Consolidated income statement and
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138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
2. Material accounting policies (continued)
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137 Consolidated income statement and
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138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
2. Material accounting policies (continued)
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137 Consolidated income statement and
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138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
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137 Consolidated income statement and
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138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
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137 Consolidated income statement and
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138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
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137 Consolidated income statement and
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138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
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137 Consolidated income statement and
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138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
8. Personnel expenses (continued)
9. Other operating expenses
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137 Consolidated income statement and
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138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
9. Other operating expenses (continued)
9.2 Professional fees
2024
USD’000
2023
USD’000
Legal services fees (418) (336)
Other professional fees (2,797) (3,072)
(3,215) (3,408)
Other professional fees includes fees for various consultants on tax, IT, accounting and actuary
valuation services.
10. Exchange rate differences
The Group incurred certain foreign exchange losses on monetary assets denominated in currencies other
than the Group’s functional currency.
2024
USD’000
2023
USD’000
Foreign currency losses (7,527) (4,923)
Foreign currency gains 6,653 2,955
(874) (1,968)
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137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
11. Income tax and withholding tax expense
2024
USD’000
2023
USD’000
Income tax expense
Income tax for current period (27,477) (20,062)
Income tax for previous period (2,061) (1,943)
Changes in deferred income tax 980 1,856
(28,558) (20,149)
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137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
11. Income tax and withholding tax expense (continued)
11.5 Reconciliation of the total tax charge
2024
USD’000
2023
USD’000
Accounting result before tax 63,535 32,195
Income tax expense at nominal rate of consolidated entities (20,967) (12,039)
(Under) provision for income tax previous year (2,061) (2,970)
Movement in unrecognised deferred taxes (3,410) (2,866)
Exempt income 294 59
Tax impact on elimination 528 527
Impact for hyperinflation (1,572) (1,356)
Permanent differences (non-deductible expenses) (1,370) (1,504)
Total income tax expense for the period (28,558) (20,149)
Weighted average nominal rate of consolidated entities 33% 37%
Consolidated effective tax rate (without withholding taxes) 45% 63%
11.6 Income tax per region
2024
USD’000
2023
USD’000
Corporate income tax – West Africa (8,794) (7,402)
Corporate income tax – South Asia (8,650) (6,721)
Corporate income tax – East Africa (9,127) (4,422)
Corporate income tax – South East Asia (1,926) (1,422)
Corporate income tax – Holding and other non-operating entities (61) (182)
Total income tax per region (28,558) (20,149)
11.7 Withholding tax expense
2024
USD’000
2023
USD’000
Withholding tax on interest income, dividend, royalties and service fees (1,521) (3,342)
Deferred tax on undistributed dividend (4,923) 53
Total withholding tax expense (6,444) (3,289)
Interest income, dividends, royalties and service fees are subject to withholding tax in certain jurisdictions.
The applicable withholding tax rates vary per country and per type of income.
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137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
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137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
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137 Consolidated income statement and
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138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
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137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
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137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
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137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
18. Other assets (continued)
18.1 Receivables from related parties
2024
USD’000
2023
USD’000
CMI 58 –
Sequoia BV 65 41
MBA Philippines 709 61
Catalyst Investment Management services 27 22
ASAIG plc EBT 972 686
Catalyst Continuity 18 –
Continuity EBT Ltd. 9 –
1,858 810
The receivables from related parties are short term in nature and do not accrue interest.
18.2 Receivables under off-book BC model (ASA India)
Receivables under off-book BC model is presented net of impairment. Gross amount receivable under
off-book BC model is USD 2.5 million (2023: USD 3.4 million)
18.3 Advance to lenders
ASAI NV paid an advance amounting to USD 1.0 million to Symbiotic and Frankfurt School Financial
Services in May 2023 on behalf of ASA Myanmar as per the loan restructuring agreed in March 2023.
This was an advance for a future assignment of various loans by the lenders to ASAI NV which was
adjusted with the purchase value of the Symbiotics loans assigned to ASAI NV.
18.4 Other receivables
Other receivables includes various advances in relation to employee’s insurance, receivable from VAT
and service tax authorities etc. Individually none of the advances are over USD 500K.
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137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
Please see note 36 and 37 for more information.
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137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
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137 Consolidated income statement and
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138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
20. Intangible assets (continued)
Total spent during the year against DFS and CBS are as follows:
2024
USD’000
2023
USD’000
Particulars Capitalised
Charged to
P&L Total Capitalised
Charged to
P&L Total
Development fees 828 828 613 – 613
Licence fees 697 384 1,081 345 482 827
Implementation cost 2,004 39 2,043 921 – 921
Consultancy 17 17 40 – 40
Salary and travelling 372 16 388 365 73 438
3,918 439 4,357 2,284 555 2,839
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137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
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137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
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137 Consolidated income statement and
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138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
27.1 Amounts due to related parties
2024
USD’000
2023
USD’000
Sequoia BV 4 6
MBA Philippines 66 15
CMI 1 –
CMIC 6 –
77 21
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137 Consolidated income statement and
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138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
27. Other liabilities (continued)
27.2 Other sundry liabilities
Other liabilities include various smaller accruals and provisions for various entities in the Company.
30. Risk management
30.1 General
Risk is inherent in the Group’s activities but it is managed through a process of ongoing identification,
measurement and monitoring, subject to certain risk limits and other controls as described in the
paragraphs below. This process of risk management is critical to the Group’s continuing profitability and
each individual within the Group is accountable for the risk exposures relating to their responsibilities.
The Group is, amongst others, exposed to business risk, operational risk, IT risk, finance risk, and legal
and compliance risk.
The independent risk control process does not include business risks such as changes in demand,
technology and industry. These changes are monitored through the Group’s strategic planning process.
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138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
30. Risk management (continued)
30.2 Risk management structure
The risk management structure within the Group begins at the subsidiary level, where a designated risk
officer is tasked with preparing periodic risk reports by assessing the likelihood and impact of various risks
facing the Company. This includes continuous identification, monitoring and reporting of risks facing the
organisation including emerging risks. While the risk officer captures mitigation activities, the responsibility
for these actions lies with the process owner. The Group risk management team compiles these country-
specific risk reports into a comprehensive Group risk report, which is discussed in the Executive Committee
meeting before being scrutinised by the Group Audit and Risk Committee for recommendations on
improved risk management practices.
The Group’s risk appetite, which defines the level of risk the Group is willing to accept in pursuit of its
business objectives, is carefully calibrated to avoid loss, fraud and operational inefficiencies. This appetite
is established at a level that exceeds regulatory requirements, ensuring conservative financial and
prudential ratios while maintaining full compliance with local regulations and laws. The Group adopts
a zero-tolerance policy towards unethical, illegal or unprofessional conduct, as well as any association
with disreputable individuals.
The Group employs a ‘three lines of defence’ model to manage risks effectively. The first line of defence
comprises branch staff, area, regional and district managers at the microfinance institution level, who are
responsible for risk associated with field work such as client risk assessment, client retention, and credit
risk etc. Country Heads and senior management ensure the proper implementation of control activities,
policies and procedures. The second line of defence challenges the first line and includes internal oversight
functions such as Compliance, Risk Management, and the Fraud and Misappropriation Prevention Unit
(‘FMPU’), along with support from the IT, HR and Finance and Accounts departments. The third line of
defence is the Internal Audit reporting independently to the Board, which operates at both the Group and
microfinance institution levels. Internal Audit regularly performs auditing activities and ensures that all
units responsible for managing risk are performing their roles effectively and continuously.
30.3 Key risk management areas and mitigation
The Group’s key risk management areas are strategic risk, operational risk, IT risk, finance risk, and legal
and compliance risk.
Risk category Definition Risks Description
Strategic risk
Strategic risk refers to the
potential threats that could
hinder the achievement of
long-term goals and mission
of serving low-income clients
sustainability.
Growth risk Risks and challenges associated with
the Group’s operational expansion.
Competition risk Risk that the Group might face for
not responding to the competitive
environment or failing to meet
customer needs.
Reputation risk Risk to earnings or capital arising
from negative public opinion.
Climate risk Risk related to potential negative
impact of climate change on the
organisation.
Operational
risk
Operational risk refers to
uncertainties a company
faces when it attempts to do
its day-to-day business
activities. It can result from
breakdowns in internal
procedures, people and
systems.
Human resource
risk
Likelihood of negative results due to
a failure within its human resource
department.
Fraud and
integrity risk
Risk of incidents of fraud and
misappropriation by staff or client.
Business
contingency
Potential adverse effects on
operation resulting from unexpected
events or disruptions.
Health and
safety risk
Potential harm or injury to employees
arising from workplace conditions
or activities.
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statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
Risk category Definition Risks Description
IT risk
Information technology risk is
any threat to business data,
critical systems and business
processes due to IT failure. It
is the risk associated with the
use, ownership, operation,
involvement, influence and
adoption of IT within an
organisation.
IT business
continuity
This risk refers to loss of data in case
of a catastrophic event.
System
vulnerability and
cyber security
This risk refers to the vulnerability of
our IT system to different types of
cyber-attacks.
Data privacy
and protection
Risk arising from unauthorised access
to sensitive information.
IT support Risk of delay in resolving IT-related
issues which may negatively impact
the operations.
System access
control
Risk of misuse of system access.
IT fraud Risk of fraud due to control gap in
IT system and processes.
Data migration
and
transformation
Risk of loss of data during the time
of data migration and challenges
pertaining to digital transformation.
Risk category Definition Risks Description
Finance risk
The Group experiences
financial risks such as credit
risk, liquidity risk, exchange
rate/currency risk and
interest rate risk which can
adversely impact the earnings
of the Company.
Credit risk Risk that the Group will incur a loss
because its clients or counterparties
fail to discharge their contractual
obligations.
Liquidity risk Risk that the Group will be unable to
meet its payment obligations when
they fall due under normal and stress
circumstances.
Exchange rate
risk
Possibility of financial loss to the
Group arising from adverse
movements in foreign exchange rates.
Inflation rate risk Rising cost of living diminishing the
borrowers’ repayment capacity;
affecting the institution’s overall
financial health.
Interest rate risk Risk arising from the possibility of
change in the value of assets and
liabilities because of changes in
market interest rates.
Concentration
risk
High concentration of portfolio in a
specific geographic area amplifying
the impact of adverse economic
events.
Tax compliance
risk
Adverse consequences faced by an
entity due to failure to adhere to tax
laws and regulations.
Legal and
compliance
risk
Financial and other losses the
Group may suffer as a result
of regulatory changes or
failure to comply with
applicable laws and
regulation.
Local regulation
risk
Risk of non-compliance to local
regulation.
Client protection
risk
Risk of negative public opinion for not
adhering to client protection
principles.
AML risk Threat arising from inadequate
measures to prevent and address
money laundering.
30. Risk management (continued)
30.3 Key risk management areas and mitigation (continued)
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138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
30. Risk management (continued)
30.3 Key risk management areas and mitigation (continued)
Strategic risk
Under strategic risk, the Group faces several key challenges. The primary focus is on how to sustainably
grow its portfolio, digitalise, enhance service quality, and increase earnings particularly in the context of
emerging economies. This also includes upholding the Company’s reputation and strengthening its
competitive advantages. Climate strategy is also a critical component, as the Group is committed to
controlling its greenhouse gas (‘GHG’) emissions and mitigating the adverse impacts of climate change on
its operations. Given the prevalence of extreme weather events in some of the countries where the Group
operates, disaster management is meticulously considered to ensure resilience and continuity.
Operational risk
Operational risk encompasses several critical areas essential to the Company’s success. Human resources
play a pivotal role, with training, development and staff retention being vital for effective operations.
The Company prioritises providing industry-standard compensation packages and clear career paths to
employees, ensuring their motivation and commitment. Maintaining the health and safety of staff is also
a top priority, reflecting the Company’s commitment to a supportive and secure working environment.
Preventing fraud and misappropriation is another significant aspect of operational risk management,
given the occasional occurrence of such incidents. The Company employs stringent measures to safeguard
against these risks, recognising their potential impact on the business. Additionally, ensuring business
continuity is crucial, as unforeseen situations can arise.
IT risk
Information & technology risk encompasses several critical components, including business continuity,
which includes ensuring server redundancy, disaster recovery sites, and swift restoration in the event of
incidents. Reducing system vulnerability to protect against cyber risks remains a top priority, with robust
measures in place to safeguard data privacy. Data is secured through password protection and is accessible
only to authorised users, ensuring confidentiality and integrity. Prompt resolution of IT issues by the
central IT team is crucial for maintaining smooth operational workflows. To prevent data loss during data
migration projects, comprehensive precautions are taken.
Additionally, an audit trail is maintained to facilitate the investigation of any digital fraud incidents. Through
these rigorous processes, the Company ensures robust IT risk management, safeguarding its technological
infrastructure and data assets.
Finance risk
Under financial risk management, maintaining low credit risk is a top priority. The Group ensures the
high quality of its portfolio through rigorous client assessments, robust weekly collection efforts, and
continuous evaluations of client’s ability to pay. To manage liquidity risk, the Group remains well funded,
and has strong access to a diverse range of funding sources at both the local and holding levels.
The Company maintains solid relationships with its debt providers, who continue to show strong interest
in funding its operations.
The Group manages currency risk by predominantly securing funding in local currencies and matching local
currency assets with local currency liabilities at its microfinance subsidiaries. For foreign currency funding,
the Company ensures that nearly 100% of its currency exposure is hedged. While the Group is exposed to
inflation rate changes in certain regions, its diversified operations across thirteen jurisdictions help reduce
this exposure.
To manage interest rate risk, the Group conducts a cost of funds analysis and monitors interest rates
in countries where interest rate caps are imposed. Interest rate risk is typically lower in microfinance
companies due to their short-term and fixed-rate loans. The Group also implements a policy on
concentration risk, monitoring portfolio concentration to encourage a well-diversified portfolio across
different geographical regions, thereby limiting exposure to adverse country specific economic events.
The Group ensures tax compliance by engaging competent external tax advisers at the entity level and
ensuring full compliance with all applicable tax laws in the jurisdictions where it operates.
Legal and Compliance risk
Compliance with local regulations is a top priority for the Group. The Group ensures adherence to all local
laws and regulations, including central bank requirements and assessments along with its implementation.
Except for the Philippines, all entities are regulated by their respective central banks. Operating within a
stringent regulatory environment encourages robust internal controls within the Group.
While the overall risk of anti-money laundering (‘AML’) is low in microfinance due to the small loan sizes,
the Group manages AML risks through adequate Know Your Customer (‘KYC’) policies, continuous
supervision of client behaviour, and rigorous implementation of AML policies and procedures. Additionally,
the Group is committed to upholding client protection principles, ensuring that client complaints are
regularly addressed and resolved promptly.
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138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
30. Risk management (continued)
30.3 Key risk management areas and mitigation (continued)
Legal and Compliance risk (continued)
Risks are mitigated through standardised practices that are part of the ASA Model of microfinance.
These include:
• Through new client assessment/KYC.
• Standardised loan products.
• Frequent client interactions through weekly collections.
• Individual loan given in a group setting.
• Loan is protected by guarantor.
• Zero-tolerance on the late deposit of loan instalments for loan officers.
• Loans granted primarily for income-generating activities.
• Full repayment before eligibility for new loans.
• Ongoing assessment of client needs, benefits and satisfaction.
30.4 Financial risks
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138 Consolidated statement of financial position
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140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
30. Risk management (continued)
30.4 Financial risks (continued)
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139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
30. Risk management (continued)
30.4 Financial risks (continued)
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139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
30. Risk management (continued)
30.4 Financial risks (continued)
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140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
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201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
30. Risk management (continued)
30.4 Financial risks (continued)
30.4.3 Foreign exchange rate risk
Currency risk is the possibility of financial loss to the Group arising from adverse movements in foreign
exchange rates. Currency risk is a substantial risk for the Group, as most loans to MFIs and borrowers are
in local currency in countries where currency depreciation against the USD is often considered less
predictable. At present the Group manages currency risk mainly through natural hedging, i.e. by matching
the MFI’s local currency assets consisting of the MFI’s loan portfolio with local currency liabilities. The
Group’s risk policy allows the Group treasurer the possibility of hedging with instruments such as swaps
and forward contracts if and when appropriate. In order to mitigate the foreign exchange risk on foreign
currency loans, ASA Pakistan, ASA Sierra Leone, ASA Kenya and ASA Zambia have entered into hedging
agreements. The Group applies hedge accounting to foreign currency loans and related hedge contracts.
Reference is made to note 37.
While the Group faces significant translation exposure on its equity investments in local MFIs (as the
functional currency of the Group is USD), the Group has implemented an equity hedging policy. The policy
entails a frequent review of expected currency devaluations compared to the costs for equity hedging
instruments. The Group has not used equity hedging instruments in 2024 and 2023. In addition, the Group
has a policy to distribute excess retained earnings at its subsidiaries to the holding entities while
maintaining a sufficient capital adequacy ratio.
In summary, the Group takes a number of measures to manage its foreign currency exposure:
• Investments are only made in countries that show a reasonable level of macroeconomic stability.
A detailed macroeconomic and socio-political assessment is carried out before the Group decides
to invest in a certain country.
• Excess retained earnings in the operating entities are distributed to the holding entities. Equity hedging
instruments are considered as part of the equity hedging policy.
• The Group endeavours to procure its MFIs to secure local currency loans (instead of foreign currency
loans) to the extent possible or deemed commercially advantageous.
• The Group applies hedging instruments on foreign currency loans in any of its operating and
holding entities.
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137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
30. Risk management (continued)
30.4 Financial risks (continued)
30.4.3 Foreign exchange rate risk (continued)
Simulation: Foreign currency translation reserve
FX translation
reserve actual
2024
USD’000
FX translation
reserve after
-10% rate
2024
USD’000
FX translation
reserve after
+10% rate
2024
USD’000
Movement
after
-10% rate
2024
USD’000
Movement
after
+10% rate
2024
USD’000
FX translation
reserve actual
2023
USD’000
FX translation
reserve after
-10% rate
2023
USD’000
FX translation
reserve after
+10% rate
2023
USD’000
Movement
after
-10% rate
2023
USD’000
Movement
after
+10% rate
2023
USD’000
West Africa (66,424) (70,375) (61,590) (3,953) 4,832 (59,644) (63,480) (54,954) (3,836) 4,689
East Africa (3,734) (7,486) 770 (3,752) 4,504 (6,012) (8,735) (2,824) (2,724) 3,188
South Asia (40,028) (41,825) (37,832) (1,797) 2,195 (40,792) (43,257) (37,777) (2,465) 3,015
South East Asia (5,688) (7,198) (3,843) (1,510) 1,845 (5,134) (6,452) (3,523) (1,318) 1,611
Non-operating entities (437) (461) (408) (24) 29 (416) (433) (396) (17) 20
Total (116,311) (127,345) (102,903) (11,036) 13,405 (111,998) (122,357) (99,474) (10,360) 12,523
Analysis of the actual exchange rate fluctuations against the USD for the period 2024 shows different trends for all the operating currencies. The annual exchange rate fluctuations are between 0.1% to 72.5%, but most
moved within 1% to 10%. For the simulation of foreign currency effects, the Company has therefore assumed an additional 10% movement year-on-year in these currencies as compared to USD.
The following overview shows the actual foreign currency exchange results by country for 2024 as well as the simulation of the impact of a 10% downward movement and a 10% upward movement of the FX rates on
the foreign exchange results.
As at 31 December 2024, a 10% downward movement of FX rates against the USD has an impact on the foreign currency exchange result of USD -1.1 million (2023: USD -78K). A 10% upward movement of FX rates
results in an impact of USD 1.4 million (2023: USD 92K). The lower impact on the result of the Company results from the decrease in short-term intercompany USD loans, which cannot be hedged.
Simulation: Foreign exchange profit and loss
Foreign
exchange profit
and loss actual
2024
USD’000
Foreign
exchange profit
and loss after
-10% rate
2024
USD’000
Foreign
exchange profit
and loss after
+10% rate
2024
USD’000
Movement
after
-10% rate
2024
USD’000
Movement
after
+10% rate
2024
USD’000
Foreign
exchange profit
and loss actual
2023
USD’000
Foreign
exchange profit
and loss after
-10% rate
2023
USD’000
Foreign
exchange profit
and loss after
+10% rate
2023
USD’000
Movement
after
-10% rate
2023
USD’000
Movement
after
+10% rate
2023
USD’000
West Africa (388) (521) (254) (133) 133 (739) (861) (617) (122) 122
East Africa 17 280 (246) 263 (263) (272) (313) (231) (41) 41
South Asia 15 (14) 45 (29) 29 (180) (182) (177) (2) 2
South East Asia (346) (472) (220) (126) 126 (20) 239 (279) 259 (259)
Non-operating entities (172) (1,279) 1,183 (1,106) 1,355 (757) (930) (571) (172) 186
Total (874) (2,006) 508 (1,131) 1,380 (1,968) (2,047) (1,875) (78) 92
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137 Consolidated income statement and
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138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
30. Risk management (continued)
30.4 Financial risks (continued)
30.4.4 Interest rate risk
Interest rate risk is the risk that profitability is affected by fluctuations in interest rates. The greatest
interest rate risk the Group experiences occurs when the cost of funds increases faster than the Group
can or is willing to adjust its lending rates. The Group’s strategy in evaluating and managing its interest rate
risk is to consider any risk at the pre-investment stage, to conduct a cost of funds analysis and to consider
interest rates in particular, where there is a limit on the amount of interest it may charge, such as in
Myanmar and Tanzania.
The credit methodology of the MFIs determines that loans to microfinance clients have short-term
maturities of less than one year and at fixed interest rates. Third-party loans to MFIs, sourced from both
local and international financial institutions, mostly having short terms between one and three years. 33%
(2023: 29%) of the consolidated debt has variable interest rates. Depending on the extent of the exposure
and hedging possibilities with regard to availability of hedging instruments and related pricing, the Group
might actively hedge its positions to safeguard the Group’s profits and to reduce the volatility of interest
rates by using forwards, futures and interest rate swaps. The very short tenor of the loans provided to
microfinance dampens the effect of interest rate fluctuations. The following table demonstrates the
sensitivity to a reasonably possible change in interest rates on the loans and borrowings affected. With
all other variables held constant, the Group’s profit before tax is affected through the impact on floating
rate borrowings, as follows:
Increase in
basis points
Decrease in
basis points
2024
Effect on profit before tax
2023
Effect on profit before tax
USD’000 USD’000 USD’000 USD’000
USD +100 -100 690 (690) 687 (687)
PKR +100 -100 263 (263) 98 (98)
30.5 Managing interest rate benchmark reform and associated risks
Following the decision by global regulators to phase out Interbank Offered Rates (‘IBORs’) and replace
them with alternative reference rates, the Group has established a project led by Group Treasury to
manage the transition for any of its contracts that could be affected. The project provides periodic updates
to senior management and the Board. The Group has already completed the transition of its LIBOR
exposure to risk free rates (‘RFRs’) and other benchmark rates.
30.6 Climate-related risks
The Group faces climate risks in both its Asian and African markets, primarily in the form of physical and
transition risks, which can impact operations and market conditions.
Physical risks such as storms, floods, heavy rains, droughts, and earthquakes are common in the countries
where we operate. During the year, the Philippines experienced an increased number of storms, which
significantly affected field operations and the livelihoods of clients. Similarly, Zambia faced a severe
drought that disrupted hydroelectric power generation, resulting in an electricity crisis. These climate-
related challenges are expected to intensify in the future, posing operational and economic risks.
Transition risks arise from evolving climate regulations and greenhouse gas (GHG) emission policies.
Currently, regulatory frameworks in our markets are not highly stringent. However, under a 2°C scenario,
climate-related regulatory requirements are expected to become stricter, increasing compliance obligations
for financial institutions. Adapting to these regulatory changes will be crucial to ensuring operational
stability and long-term sustainability.
To mitigate climate impact, the Group has set SMART targets aimed at reducing emissions through various
initiatives, including tree plantation programs, the use of LED lighting for energy efficiency, the adoption of
electric motorbikes to reduce fuel consumption, and the installation of solar panels to promote sustainable
energy use. Additionally, the Group actively encourages environmentally friendly initiatives across all
entities. Any climate-related directives from central banks are promptly adopted to ensure regulatory
compliance. A long-term climate risk assessment was conducted this year to evaluate how climate risks
will affect the Group’s sustainability and operations in the coming years. Refer to page 65 for details in
relation to climate-related risks.
30.7 Legal and compliance risk
The Group mitigates legal and compliance risks in the countries where its subsidiaries and microfinance
institutions (MFIs) operate through continuous monitoring of regulatory and legal developments. This is
achieved by engaging tier-one law firms, working closely with local corporate secretaries and compliance
officers, and maintaining direct relationships with regulators, including central banks. The Group’s
extensive local and international network ensures it remains well-positioned to identify and adapt to legal
changes that could materially impact its operations.
A number of MFI investments are made through ASAI NV in the Netherlands, which benefits from an
extensive network of Bilateral Investment Treaties. These treaties provide protection, including
compensation, in the event of nationalization or expropriation of investments in countries where ASAI NV
operates, such as the Philippines, Sri Lanka, Uganda, Kenya, and Ghana.
Product transparency is a key component of the Group’s compliance strategy. Given that many of its target
clients have limited financial education, the Group prioritises clear communication of product terms and
pricing. The Group ensures that clients fully understand loan conditions, fees, and repayment schedules to
promote responsible borrowing and financial inclusion.
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137 Consolidated income statement and
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138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
30. Risk management (continued)
30.7 Legal and compliance risk (continued)
The General Counsel of the Group is responsible for overseeing all legal matters. The Compliance Manager
is responsible for implementing the Group’s compliance framework, including the Compliance Policy,
which defines principles and standards for managing compliance risks. The Group ensures that compliance
policies align with its strategy and core values while considering the nature, scale, and complexity of
its business.
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138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
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138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
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139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
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201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
34. Contingent liabilities and uncertain tax positions
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138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
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138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
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138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
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138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
38. Maturity analysis of assets and liabilities
The table below shows an analysis of assets and liabilities according to when they are expected to be
recovered or settled. Loans and advances to customers are based on the same expected repayment
behaviour as used for estimating the EIR. Debt issued and other borrowed funds reflect the contractual
repayments except for debts, where no waivers have been received against breached covenants at the
balance sheet date. Those borrowings are presented on demand.
As at 31 December 2024
Within
12 months
USD’000
After
12 months
USD’000
Total
USD’000
Assets
Cash at bank and in hand 79,145 – 79,145
Loans and advances to customers 409,769 208 409,977
Due from banks 14,911 14,352 29,263
Equity investment at FVOCI – 315 315
Property and equipment – 7,597 7,597
ROU assets 882 4,490 5,372
Deferred tax assets – 7,277 7,277
Derivative assets 258 – 258
Other assets 17,020 1,766 18,786
Intangible assets – 10,512 10,512
Total assets 521,985 46,517 568,502
Liabilities
Debt issued and other borrowed funds 156,778 164,072 320,850
Due to customers 90,137 34 90,171
Retirement benefit liability – 6,856 6,856
Current tax liability 13,997 182 14,179
Deferred tax liability – 4,635 4,635
Lease liability 430 3,495 3,925
Derivative liabilities 3,394 (142) 3,252
Other liabilities 18,434 7,505 25,939
Provisions 2,204 – 2,204
Total liabilities 285,374 186,637 472,011
Net 236,611 (140,120) 96,491
As at 31 December 2023
Within
12 months
USD’000
After
12 months
USD’000
Total
USD’000
Assets
Cash at bank and in hand 76,429 – 76,429
Loans and advances to customers 329,765 392 330,157
Due from banks 9,819 32,278 42,097
Equity investment at FVOCI – 273 273
Property and equipment – 7,237 7,237
ROU assets 808 3,977 4,785
Deferred tax assets – 5,769 5,769
Derivative assets 2,450 – 2,450
Other assets 11,901 1,589 13,490
Intangible assets – 7,340 7,340
Total assets 431,172 58,855 490,027
Liabilities
Debt issued and other borrowed funds 158,086 115,325 273,411
Due to customers 79,087 8 79,095
Retirement benefit liability 22 4,816 4,838
Current tax liability 9,326 – 9,326
Deferred tax liability – 2,406 2,406
Lease liability 652 2,620 3,272
Derivative liabilities 69 9 78
Other liabilities 15,584 23,979 39,563
Provisions 1,428 – 1,428
Total liabilities 264,254 149,163 413,417
Net 166,918 (90,308) 76,610
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138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes to the consolidated financial statements (continued)
for the year ended 31 December 2024
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138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Notes
2024
USD’000
2023
USD’000
Interest and similar income 3 –
Dividend income 8,083 4,670
Net revenue 8,086 4,670
Personnel expenses 40 (1,710) (1,212)
Professional fees (2,387) (2,446)
Administrative expenses (1,219) (1,144)
Exchange rate differences (45) (45)
Total operating expenses (5,361) (4,847)
Profit/(loss) before tax 2,725 (177)
Profit/(loss) and total comprehensive profit/(loss)
for the period, net of tax 2,725 (177)
The notes 40 to 47 form an integral part of these financial statements.
Notes
2024
USD’000
2023
USD’000
Assets
Cash at bank and in hand 337 359
Due from banks 14.1 – 21,392
Investment in subsidiaries 41 120,684 120,684
Other assets 42 1,285 898
Total assets 122,306 143,333
Equity and liabilities
Equity
Issued capital 43 1,310 1,310
Retained earnings 44 119,234 119,461
Other reserves 780 71
Total equity attributable to equity holders of the parent 121,324 120,842
Liabilities
Other liabilities 45 982 22,491
Total liabilities 982 22,491
Total equity and liabilities 122,306 143,333
Approved by the Board of Directors on 23 April 2025
Signed on behalf of the Board
Rob Keijsers Tanwir Rahman
CEO CFO
The notes 40 to 47 form an integral part of these financial statements.
Statutory statement of profit and loss
and other comprehensive income
for the year ended 31 December 2024
Statutory statement of financial position
as at 31 December 2024
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138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Issued capital
USD’000
Retained
earnings
USD’000
Other reserves
USD’000
Total
USD’000
At 1 January 2023 1,310 119,638 – 120,948
Loss for the period – (177) – (177)
Total comprehensive loss for the period 1,310 119,461 – 120,771
Share-based payments – – 71 71
At 31 December 2023 1,310 119,461 71 120,842
At 1 January 2024 1,310 119,461 71 120,842
Profit for the period – 2,725 – 2,725
Total comprehensive loss for the period 1,310 122,186 71 123,567
Share-based payments – – 709 709
Dividend – (2,952) – (2,952)
At 31 December 2024 1,310 119,234 780 121,324
The notes 40 to 47 form an integral part of these financial statements.
Notes
2024
USD’000
2023
USD’000
Operating activities
Profit/(loss) before tax 2,725 (177)
Adjustment for movement in:
Operating assets 46 21,005 (1,373)
Operating liabilities 46 (21,509) 1,060
Non-cash items 46 709 71
Net cash flows used in operating activities 2,930 (419)
Financing activities
Dividend paid (2,952) –
Net cash flows used in financing activities (2,952) –
Net increase in cash and cash equivalents (22) (419)
Cash and cash equivalents at the beginning of the period 359 778
Cash and cash equivalents as at 31 December 337 359
The notes 40 to 47 form an integral part of these financial statements.
Statutory statement of changes in equity
for the year ended 31 December 2024
Statutory statement of cash flows
for the year ended 31 December 2024
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138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Separate financial statements
The accounting policies applied in the statutory financial statements are similar to those used in the
consolidated financial statements except for investments in subsidiaries. Investments in subsidiaries
are accounted in the separate financial statements, using the cost method.
At each reporting date it is determined whether there is objective evidence that the investment in the
subsidiaries is impaired. If there is such evidence, a calculation will be made for the impairment amount
as the difference between the recoverable amount of the subsidiaries and its carrying value.
40. Total other operating expenses
Total operating expenses include the following items:
2024
USD’000
2023
USD’000
Personnel expenses (1,710) (1,212)
Professional fees (2,387) (2,446)
Administrative expenses (1,219) (1,144)
(5,316) (4,802)
41. Investments in subsidiaries
2024
USD’000
2023
USD’000
Investments in subsidiaries
ASA International Holding 75,195 75,195
ASA International NV 45,489 45,489
120,684 120,684
Name of company Country Nature of business
2024
ownership
2023
ownership
ASA International Holding Mauritius MFI Holding Company 100% 100%
ASA International NV Netherlands MFI Holding Company 100% 100%
42. Other assets
The other assets comprised the following:
2024
USD’000
2023
USD’000
Other receivables 1,208 863
Advances and prepayments 77 35
1,285 898
43. Issued capital
100 million ordinary shares of GBP 0.01 each. No movement occurred during 2024 and 2023.
44. Retained earnings
Total retained earnings are calculated as follows:
2024
USD’000
2023
USD’000
Balance at the beginning of the period 119,461 119,638
Dividend (2,952) –
Result for the period 2,725 (177)
Balance at the end of the period 119,234 119,461
Profit for the period
Attributable to equity holders of the parent 2,725 (177)
Notes to the statutory financial statements
for the year ended 31 December 2024
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127 General information
128 Independent auditor’s report to the
members of ASA International Group plc
137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
45. Other liabilities
Notes
2024
USD’000
2023
USD’000
Short-term liabilities
Accrued audit fees 717 628
Accrued cost 265 113
Other intercompany payables – 358
982 1,099
Long-term liabilities
Escrow liability to CMI 14.1 – 21,392
982 22,491
46. Additional cash flow information
2024
USD’000
2023
USD’000
Changes in operating assets
Due from banks 21,392 (700)
Other assets (387) (673)
21,005 (1,373)
Changes in operating liabilities
Other liabilities (21,509) 1,060
(21,509) 1,060
Changes in non-cash items
Share-based payments 709 71
709 71
47. Maturity analysis of assets and liabilities
The table below shows an analysis of assets and liabilities according to when they are expected to be
recovered or settled.
As at 31 December 2024
Within
12 months
USD’000
After
12 months
USD’000
Total
USD’000
Assets
Cash at bank and in hand 337 – 337
Due from banks – – –
Investment in subsidiaries – 120,684 120,684
Other assets 1,285 – 1,285
1,622 120,684 122,306
Liabilities
Other liabilities 982 – 982
Net 640 120,684 121,324
As at 31 December 2023
Within
12 months
USD’000
After
12 months
USD’000
Total
USD’000
Assets
Cash at bank and in hand 359 – 359
Due from banks – 21,392 21,392
Investment in subsidiaries – 120,684 120,684
Other assets 898 – 898
1,257 142,076 143,333
Liabilities
Other liabilities 1,099 21,392 22,491
Net 158 120,684 120,842
Notes to the statutory financial statements (continued)
for the year ended 31 December 2024
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137 Consolidated income statement and
statement of comprehensive income
138 Consolidated statement of financial position
139 Consolidated statement of changes in equity
140 Consolidated statement of cash flows
141 Notes to the consolidated financial statements
201 Statutory statement of profit or loss and
other comprehensive income
201 Statutory statement of financial position
202 Statutory statement of changes in equity
202 Statutory statement of cash flows
203 Notes to the statutory financial statements
Additional information
Alternative performance measures
KPI 2024 2023 Definition
Outstanding
loan portfolio
(‘OLP’)
$446.6m
$369.2m The figure depicts the consolidated outstanding loan portfolio,
including off-book net BC loan portfolio from IDFC, Jana Small
Finance Bank, Fincare, Ujjivan, ESAF and Direct Assignment loans
with SBI. It excludes interest receivables and unamortised loan
processing fees, as included in the loans and advances to customers
in note 13 to the financial statements, and maintains the deduction
of modification losses and ECL provisions from the gross
outstanding loan portfolio.
Gender
diversity
38%
37% Number of female employees compared to total employees.
Gross OLP/
Client
$182
$162 Gross outstanding loan portfolio including BC and DA loans divided
by total number of clients.
Debt-to-
equity ratio
3.2
3.5 The ratio is calculated by dividing closing balances of interest-
bearing debt with total equity. Interest-bearing debt includes debt
issued and other borrowed funds in note 25, less interest payables.
Profit
before tax
$63.5m
$32.2m Consolidated profit before tax for the year as reported in the
financial statement.
Reported net
profit after
tax
$28.5m
$8.8m Consolidated profit for the year as reported in the financial
statements.
Net interest
margin
(‘NIM’)
35%
31% Net interest margin (‘NIM’) is calculated as net interest income
divided by average interest-earning assets on consolidated basis.
Average interest-earning assets is calculated as the sum of cash
at bank and in hand, due from banks and loans and advances
from customers.
Return on
assets (‘ROA’)
5.4%
1.8% Return on assets (‘ROA’) is calculated by dividing the net profit after
tax by the average of total assets. ROA is displayed as a percentage.
Return on
equity (‘ROE’)
33.0%
10.5% Return on equity (‘ROE’) is calculated by dividing the net profit
after tax by the average of shareholders’ equity. ROE is displayed
as a percentage.
EPS (USD) 0.29
0.09 Earnings per share (‘EPS’) is calculated by dividing the Company’s
net profit after tax by the weighted average number of ASAI Group
plc ordinary shares outstanding during the year. For 2022, number
of shares is equivalent to the number of ASA International Group
plc shares, which was 100 million.
KPI 2024 2023 Definition
Total DPS
(USD)
0.07
NIL The figure is calculated by dividing the total dividends paid out
by ASAI, including interim dividends, over a period of time by
the weighted average number of ASAI Group plc ordinary shares
outstanding during the year.
Cost to
income
61.4%
72.1% Cost to income ratio is calculated by dividing total operating
expenses by total net operating income on consolidated basis.
% Voluntary
savings to
OLP
3.5%
3.4% Voluntary savings to OLP is calculated by dividing total voluntary
savings by total outstanding loan portfolio including BC and
DA loans.
Taxes 35.0m
23.4m Sum of the consolidated income tax expense and consolidated
withholding tax expense for the year as reported in the
financial statement.
Client
economic
yield (‘CEY’)
N/A
N/A The Client Economic Yield (‘CEY’) is calculated by deducting the
clients’ weekly interest costs from their average weekly income,
derived from their business activities. The survey is undergoing
revision, preventing disclosure.
Client
retention rate
80%
77% Determined by subtracting the total number of new clients in a
period from the number of clients at the end of that period divided
by the total number of clients at the beginning of the period.
Periods based on tenor of client loans (6, 10, or 12 months). The
Group’s total client retention rate is calculated as the weighted
average of the country client retention rates.
Number of
new branches
143
77 The number of new branches commencing operations in the period
in all operating markets.
Client
satisfaction
survey
84%
90% This survey is conducted by interviewing at least two clients per
loan officer (long-term and newer clients with loans of greater than
6/12 months as applicable) with yes/no, closed and open-ended
questions. The responses are coded and converted into
percentages to estimate client’s satisfaction with the products
and with the services delivered by ASAI.
Carbon
footprint
7489
tonnes
CO
2
8,574
tonnes
CO
2
Carbon footprint is measured as the sum of direct emissions
of greenhouse gases, carbon emissions from direct purchase of
electricity and fuel combustion for transportation purposes.
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Alternative performance measures (continued)
KPI 2024 2023 Definition
Social
performance
index (‘SPI‘)
85%
90% SPI4 is a social audit tool made by CERISE as per Universal
Standards managed by SMART CAMPAIGN. The assessment
is divided into seven dimensions with both qualitative and
quantitative questions. Each dimension carries a score of 100.
See https://en.spi-online.org/ for more details.
Number
of clients
2.5m
2.3m The number of clients in all operating markets.
Number
of branches
2,145
2,016 The number of branches in all operating markets.
PAR>30 2.2%
2.0% PAR>30 is the percentage of gross OLP that have one or more
instalment repayments of principal past due for more than 30 days,
but less than 365 days, divided by total outstanding gross loan
portfolio (including both on-book and off-book portfolio).
Number
of staff
14,232
13,433 The number of people directly employed by the Company.
Under this definition, we use colleagues, staff and employees
interchangebly in the annual report.
Client per
branch
1,172
1,156 Client per branch is the total number of clients divided by the total
number of branches.
Borrowers
per loan
officer
292
287 The borrowers per loan officer is calculated by dividing total
number of clients by total number of loan officers.
Employee
recruitment
38%
33% Number of staff hired in current period/number of staff at start
of current period.
Employee
satisfaction
rate
75%
81% Using qualitative methods, staff satisfaction analyses employee
satisfaction rate along three main areas: professional satisfaction,
facility satisfaction and department service satisfaction.
Hours
training
77,350
67,107 Total hours of in-house, online and external training at the entity
level, excluding on-the-job training.
Clients
accessing
a financial
service for
the first time
70%
70% This outcome indicator was derived from clients’ responses to
question “Are you accessing a formal financial service, for the
first time, through taking ASAI loan? (Formal means a financial
institution) – Yes/No” in the Client Economic Yield survey of 2023,
reflecting their interpretation and input. This answer is considered
valid for 2024.
KPI 2024 2023 Definition
Clients
increasing
their daily
income level
94%
94% This outcome indicator was derived from clients’ responses to
question “Has your daily income increased after taking the loan?
– Increased/No Change/Decreased” in the Client Economic Yield
survey of 2023, reflecting their interpretation and input. This
answer is considered valid for 2024.
Increase
of share in
family income
by females
89%
89% This outcome indicator was derived from clients’ responses to
question “Has your share in family income increased after taking
the loan? – Increased/No Change/Decreased” in the Client
Economic Yield survey of 2023, reflecting their interpretation and
input. This answer is considered valid for 2024.
Financial
management
improved
94%
94% This outcome indicator was derived from clients’ responses to
question “Has your understanding of managing finances improved
since you took loan from the company? – Improved/No/Worsen”
in the Client Economic Yield survey of 2023, reflecting their
interpretation and input. This answer is considered valid for 2024.
Living
conditions
improved
94%
94% This outcome indicator was derived from clients’ responses to
question “Has your living conditions improved after taking the loan?
– Improved/No/Worsen” in the Client Economic Yield survey of
2023, reflecting their interpretation and input. This answer is
considered valid for 2024.
Increase of
leadership
or decision-
making role
82%
82% This outcome indicator was derived from clients’ responses
to question “Has your leadership or decision-making role within
your household or community increased after taking the loan?
– Improved/No/Worsen” in the Client Economic Yield survey of
2023, reflecting their interpretation and input. This answer is
considered valid for 2024.
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List of abbreviations
Abbreviation Definition
2FA Two-factor authentication
A1 Nigeria A1 Nigeria Consultancy Limited
Admission Admission of the Company to the Main Market of the London Stock Exchange
AGM Annual General Meeting
ALCO Asset-Liability Committee
AMBS ASA Microfinance Banking System
AML Anti-Money Laundering
AMSL ASAI Management Services Limited
ARC Audit and Risk Committee
ASA NGO Bangladesh ASA NGO-MFI registered in Bangladesh
ASA Kenya ASA Limited
ASA Lanka ASA Lanka Private Limited
ASA Myanmar ASA Microfinance (Myanmar) Ltd
ASA Model The ASA model of microfinance as developed by ASA NGO Bangladesh
ASA Pakistan ASA Pakistan Limited
ASA Rwanda ASA Microfinance (Rwanda) Limited
ASA Savings & Loans ASA Savings & Loans Limited (Ghana)
ASA Sierra Leone ASA Microfinance (Sierra Leone)
ASA Tanzania ASA Microfinance (Tanzania) Ltd
ASA Uganda ASA Microfinance (Uganda) Limited
ASA Zambia ASA Microfinance Zambia Limited
ASAIH ASA International Holding
ASAI I&M ASAI Investments & Management B.V.
ASA India ASA International India Microfinance Limited
ASAI NV ASA International N.V.
Abbreviation Definition
ASA International ASA International Group plc
ASA Nigeria ASHA Microfinance Bank Limited
ASIEA Association for Social Improvement and Economic Advancement (Nigeria)
BC Business Correspondent
BEPS Base Erosion and Profit Shifting
BIO Belgian Investment Company for Developing Countries SA/NV
Board Board of Directors of ASA International Group plc
CBS Core Banking System
Citi Citibank N.A., Jersey Branch
CBN Central Bank of Nigeria
CCRC Client Complaint Resolution Committee
CEO Chief Executive Officer
CFO Chief Financial Officer
CGU Cash-generating unit
COO Chief Operating Officer
Companies Act/CA Companies Act 2006 (UK)
Company ASA International Group plc
CMI Catalyst Microfinance Investors
CMI Lanka C.M.I. Lanka Holding (Private) Limited
CMIC Catalyst Microfinance Investment Company
CMII CMI International Holding
CO
2
Carbon dioxide
The Code UK Corporate Governance Code 2016 published by the Financial
Reporting Council
COB Commencement of Business
COC Change of control
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List of abbreviations (continued)
Abbreviation Definition
CODM Chief Operating Decision Maker
CPI Consumer Price Index
CPP Client Protection Principles
CRRO Climate-Related Risks and Opportunities
CSR Corporate Social Responsibility
DA Direct Assignment
DCF Discounted cash flow
DCP Digital Credit Provider
DEI Diversity, Equity and Inclusion
DFS Digital Financial Services
DFS app Digital Financial Services platform
DR Disaster Recovery
DRF/MRF Death Risk Fund/Multipurpose Risk Fund
EBT Employee Benefit Trust or Earnings Before Tax
ECL Expected Credit Losses
ED Executive Director
EIR Effective Interest Rate
EPRP Emergency Preparedness and Response Plan
ESG Environmental Social and Governance
ESMS Environment and Social Management System
EXCO Executive Committee
EY Ernst & Young LLP is a limited liability partnership registered in England
and Wales with registered number OC300001 and is a member firm of
Ernst & Young Global Limited
FCA Financial Conduct Authority
FMPU Fraud and Misappropriation Prevention Unit
Abbreviation Definition
FTE Full-Time Employee
FVOCI Fair Value through Other Comprehensive Income
FVTPL Fair Value Through Profit or Loss
FX Foreign Exchange
GBP Pound Sterling
GHG Greenhouse Gas
GMC Grievance Mitigation Committee
Group ASA International and its consolidated subsidiaries and subsidiary
undertakings from time to time
HR Human Resources
IAS International Accounting Standards
IASB International Accounting Standards Board
IBR Incremental Borrowing Rate
IFRS International Financial Reporting Standards
INED Independent Non-Executive Director
IR Investor Relations
IDFC IDFC First Bank
IRD Department of Inland Revenue
ISDA International Swaps and Derivatives Association
IT Information Technology
JSFB Jana Small Finance Bank
KPI Key Performance Indicator
KYC Know Your Customer
Lak Jaya Lak Jaya Micro Finance Limited (Sri Lanka)
LCBU Loan Collateral Build Up
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Abbreviation Definition
Listing Rules The listing rules relating to admission to the Official List made under
section 73A(2) of the FSMA
LO Loan officer
LTIP Long-term incentive plan
MBA Philippines PagASA Ng Pinoy Mutual Benefit Association, Inc.
MFB Microfinance Banking
MFI Microfinance Institution
MRR Minimum Retention Rate
NCI Non-controlling interest
NCIA Natural Calamity Impact Assessment
NBFC-MFI Non-Banking Financial Company – Micro Finance Institutions
Non-Executive Directors The Non-Executive Directors of ASA International
NRCGT Non–Resident Capital Gains Tax
OeEB Oesterreichische Entwicklungsbank Ag
OeCD Organisation for Economic Co-operation and Development
Oikocredit Oikocredit, Ecumenical Development Co-Operative Society U.A.
OCI Other Comprehensive Income
Pagasa Pagasa ng Masang Pinoy Microfinance, Inc.
Pagasa Consultancy Pagasa Consultancy Limited
Pagasa Philippines/PPFC Pagasa Philippines Finance Corporation, Inc.
PDMRs Persons Discharging Managerial Responsibilities
PD Probability of Default
Pinoy Pinoy Consultancy Limited
PSO Pre-Service Orientation
PT PAGASA Consultancy PT PAGASA Consultancy
RBI Reserve Bank of India
Abbreviation Definition
RMF Risk Management Framework
Relationship Agreement The relationship agreement entered into by ASA International,
Catalyst Microfinance Investors, Catalyst Continuity Limited, Dirk Brouwer
and Md Shafiqual Haque Choudhury
RFRs Risk free rates
ROU Right-of-use
SAAS Software as a service
SBI State Bank of India
SBP State Bank of Pakistan
SC Sustainability Committee
SDG Sustainable Development Goals
SEC Securities and Exchange Commission
SECR Streamlined Energy Carbon Reporting
Sequoia Sequoia B.V.
SMART targets Specific, Measurable, Achievable, Relevant, and Time-Bound targets
SME loans Small-Medium Enterprise loans
SMP Supplier Market Place
SPPI Solely Payments of Principal and Interest
SPM Social Performance Management
Symbiotics Symbiotics SA
TCFD Task Force on Climate-Related Financial Disclosures
ToR Terms of Reference
UK The United Kingdom of Great Britain and Northern Ireland
UKLA United Kingdom Listing Authority
US or United States The United States of America, its territories and possessions,
any State of the United States of America, and the District of Columbia
USD United States Dollar
List of abbreviations (continued)
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