ASA International – profits set to double for 2025, shares ‘cheap as chips’ at 206p, TP 370p

Mark Watson-Mitchell – 29.01.2026

In todays’ Q4 2025 Trading and Business Update from ASA International (LON:ASAI) it has noted that its Management anticipates its full-year 2025 net profit will double to approximately $57m, up from $28.5m in 2024, driven by strong loan portfolio growth to $628.4m as at end-December, a 13% increase from the previous quarter and a 37% rise year-over-year, with client numbers growing by nearly 100,000 in the fourth quarter.

The company also reported an improvement in its Portfolio at Risk (PAR) over 30 days to 1.8% and successfully completed its digital transformation migration in Ghana, with plans for Tanzania in early 2026.

The Business

ASAI is one of the world's largest international microfinance institutions, with a strong commitment to financial inclusion and socioeconomic progress.

Microfinance is the provision of financial services to the poor.

This involves small amounts of savings, credit, insurance and money transfer services.

There is significant net demand for such financial services in many areas of the developing world, especially in rural areas.

The company provides small, socially responsible loans to low-income, financially underserved entrepreneurs, predominantly women, across South Asia, South-East Asia, West and East Africa.

ASA International provides small socially responsible loans, bank accounts, savings and other financial services to start or grow businesses.  

The business, which has over 2,016 branches, across 13 countries, handling its 2.7m clients, operates in Pakistan, India, Sri Lanka, The Philippines, Myanmar, Ghana, Nigeria, Sierra Leone, Tanzania, Kenya, Uganda, Rwanda and Zambia. 

Management Comment

CEO Rob Keijsers stated that:

"2025 was another outstanding year for ASA International with the delivery of both strong operational growth and significantly increased levels of profitability.

Profitability has doubled compared to 2024 and Gross OLP has increased by 37% versus the prior year.

It is encouraging to see that the refined strategy we adopted at the start of the year, alongside strengthened leadership layers and an expanded product suite, is already starting to pay off.

These results are also a reflection of the strength and commitment of our teams across our various operating markets and the continued trust of our 2.8m clients.

Zooming into Q4 specifically, performance in the quarter once again demonstrated the robustness of our operating model and saw growth across key markets, including Pakistan, Uganda, Tanzania and Kenya.

Our responsible approach to growth is further evidenced by the improved loan portfolio quality seen in the quarter.

We also built on the successful digital transformation in Ghana with an intensification of the work ahead of the forthcoming Tanzania migration.

As 2026 progresses, our priorities remain firmly centred on sustainable growth, transforming the business through our digital agenda, creating further resilience across the organisation and driving operational excellence.

At the heart of all of this remains our mission of increasing financial inclusion for underserved female entrepreneurs."

The Equity

There are some 100m shares in issue.

The larger holders include Catalyst Microfinance Investment (31.79%), Conifer Capital Management (19.53%), APG Asset Management (18.67%), Phoenician Capital (10.10%), RWC Asset Management (4.12%), and Renta 4 Gestora (3.37%).

Broker’s View

There are just three brokers following the group closely, the consensus average shows a Target Price of 315p, the Lowest at 259p, and the Highest at 370p.

That Highest Target Price of 370p was increased yet again by analysts Rahim Karim and Jens Ehrenberg, at Cavendish Capital Markets.

The brokers stated that:

“The shares have continued to perform well through 2025, up 106% YTD.

Our new 335p target price is based on our FY26E target adj. P/E of 7x and implies 87% potential upside.

We believe continued momentum and consistent delivery against earnings expectations are key to unlocking value for ASAI.

Further operational progress and the roll-out of its digital transformation underpin our assumptions that ASAI will continue to grow its loan book with stickier and more profitable clients.”

Their estimates for the year to end-December are for revenues of $259.4m ($187.7m), with adjusted pre-tax profits rising to $103.7m ($63.5m), lifting its adjusted earnings to 43.2p (27.2p) and paying a dividend of 9.7p (5.6p) per share.

For this year, they look for $307.8m revenues, $126.7m profits, earnings of 52.8p and a dividend per share of 13.2p.

My View

A very encouraging Trading Update that should incite investor interest in this group’s shares, now at 206p.

I am even more confident that my early December set Target Price of 240p will soon be beaten.

(Profile 09.09.24 @ 87p set a Target Price of 130.50p*)

(Profile 23.10.24 @ 67.50p set a Target Price of 102p*)

(Profile 10.12.24 @ 70p set a Target Price of 105p*)

(Profile 08.12.25 @ 192p set a Target Price of 240p)