Courts Asia

[specuvestor]

I think most of us here have concluded that Courts is a finance company

The detail is even more complicated that even though they have a securitisation program it comes with recourse to Courts on defaults, to save on interest cost. About 70% of eligible pool are securitised hence the big figure.

The insurance they bought are mainly on their extended warranties, evident by the rising impairment charge YoY. This is also complicated because as they collateralised the loans, the income on warranties and cost on insurance gets recognised immediately. Interest component is also higher at the beginning of Court's loan to customers, which is why their PnL from service charge can be quite volatile real time, RATHER THAN SMOOTHED OUT as most expect.