Credit Corp not paying dividend

THE Credit Corporation PNG board has decided not to pay an interim dividend for the 2020 financial year given the economic uncertainty caused by the Covid-19.
It announced to the market last week that in assessing its options, the board considered Credit Corporation’s dividend policy, capital strength and potential impacts on capital because of increased provisioning resulting from the Covid-19 related economic effects and credit stress testing scenarios.
Chairman Syd Yates said: “In the current environment, financial services companies around the world face added challenges to their capital resilience, including loan repayment deferrals, which are presently subject to regulatory concessions, along with the financial impact of the Covid-19.
“The board’s decision on the FY20 interim dividend is prudent given its desire to preserve a strong balance sheet and considering the present economic circumstances.”
Yates said the decision did not relate to Credit Corporation’s current financial position as the group’s liquidity, funding and capital measures remain comfortably above regulatory and operational requirements.
“Our balance sheet remains strong and we have maintained our focus on continued balance sheet growth,” Yates said.
“The Covid-19 has clearly impacted our performance, as it has most organisations around the world.
“However, the work done over the year to refocus our business, strengthen our balance sheet as well as developing more agile and resilient operations means we are well-prepared to support customers and our people going forward.”