Credit Corp plans to enter banking sector

CREDIT Corporation chief executive officer Danny Robinson says the group has progressed a new strategic pathway with a five-year plan.
“The plan will set us on a transition journey from being a diversified finance and investment company into a high-performing finance company, and eventually entering into banking and becoming a full-fledged commercial bank,” he said.
“We will seek organic and inorganic opportunities to achieve this strategic objective,” Robinson said in the company’s financial year 2021 (FY21) report.
The key focus for the group in FY21 was to manage costs, improve credit quality of the portfolio, strengthen collections and support distressed customers.
The property segment of the group achieved a core operating profit of K10.2 million, down from K11.5 million the previous year.
“This reflected the weaker demand for residential properties as Coronavirus (Covid-19) restrictions caused companies to re-evaluate their staff accommodation requirements. Pleasingly, the group’s commercial property Credit House, maintained occupancy levels at 100 per cent.
“Yields on the group’s investments significantly improved FY21, driven by its BSP shares.”