Firm records K64m profit

Business

CREDIT Corporation says its profit after tax for the first half of the year is K64.61 million.
Chairman Sir Wilson Kamit said this was an increase of K11.44 million from the corresponding period last year.
“Group core business financing investment and property rental activity continue to produce acceptable results relative to the current subdued economic conditions,” Kamit said.
“Financing volumes are within budgeted levels and property occupancy rates are maintained as forecast.”
He said the investment revaluation recorded a positive adjustment mainly due to the increase in the Bank of South Pacific share price from K7.45 to K8.10 during the half year. “A dividend totalling K44.1 million (14 toea per share) was paid to shareholders during August,” he said.
“During the half-year, Credit Corporation continued to maintain very strong capital and funding positions.
“Despite the challenging trading environment, the board is confident that the operating results for the second half of 2016 will achieve budget expectations. The group will continue to maintain its preeminent status as one of the largest locally-owned corporations in the South Pacific with total assets of K1.26 billion and shareholders’ equity reaching K767 million.”
He also said the board had decided to introduce the payment of an interim dividend and to split the dividend payments to shareholders instead of paying a dividend once a year.
Kamit said in line with that decision, the board has approved the payment of an interim dividend for 2016 of K9.5 million or 3 toea per share.
“While flat business conditions continue in PNG in the short term, the company is well positioned with an excellent business, strong capital and liquidity and growing balance sheet,” Kamit said.

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