Credit Corp gains 19 per cent profit

The National Business

CREDIT Corporation has recorded a first half-year net profit of K63 million – an increase of 19 per cent from the same period last year.
Other highlights include:

  • DIVIDEND per share up 122 per cent to 10.2 toea per share;
  • EARNINGS per share up 19 per cent to 20.5 toea per share;
  • CORE operating profit up 27 per cent to K62.9 million;
  • NET interest margin at 12.4 per cent, up 1.5 per cent;
  • RETURN on Equity at 13.6 per cent, up from 10.9 per cent;
  • TOTAL risk weighted capital at 42 per cent, up from 34 per cent;
  • FINANCE division net profit increased by 51 per cent to K17.1 million;
  • PROPERTY division core operating profit up 18 per cent to K5.9 million; and,
  • DIVIDEND income of K48.4 million up from K38.4 million.

Board chairman Richard Sinamoi said: “We delivered improved financial results having benefitted from disciplined control of margins and operating costs and higher investment returns, including lower impairment costs as a result of the Company’s continued focus on collections and credit management procedures.
“Our focus in supporting our customers, communities, and all stakeholders, amidst the challenges faced by many customers and the economies where we operate, remained.
“Looking ahead, as Credit Corporation progresses through its transformational journey, growth opportunities, disciplined approach to the quality of its loan book and maintaining an overall strong and resilient balance sheet, will remain focus areas for the Group.
“We will continue to invest in the simplification of our business, new capabilities, technology and our people, which will allow us to become more innovative and agile in responding to our customers’ needs as we continue working towards our strategic objective.”
Chief executive officer Danny Robinson said “The outlook for the Group remains positive.
“As restrictions ease in parts of our business, we are seeing opportunities beginning to emerge helping to drive the business performance.”