Credit Corp posts K34m H1 op profit

Business, Normal
Source:

By PATRICK TALU

CREDIT Corp PNG Ltd (CCP) has declared an impressive half-year cash operating profit of K34.08 million for June ending period compared to the K16.53 million it made during the same period last year.
CCP chairman Garth McIlwain yesterday said the group’s core business financing and property rental activity continued    to produce good results. 
Financing volumes in PNG, Fiji and Vanuatu have continued to achieve budget levels. 
Financing volumes in the Solomon Islands have reduced somewhat, possibly due to business uncertainty during the recent national elections.
McIlwain said property rentals in PNG were progressively increasing as tenancies expire and new leases were executed at the higher rental levels in the market.
He said once again, a negative adjustment had been booked against the group profit and loss account consequent to a further decrease in the Bank South Pacific Ltd share price recorded by the Port Moresby Stock Exchange.
During the period under review, the BSP share price reduced from 85 toea to 65 toea per share. 
The sum of K82.65 million has been booked to reflect the reduced market value of this long term strategic investment by CCP Group.
Following the adjustment for the reduced BSP share portfolio value, a book loss of K53.86 million is recorded for the half-year.
He said during the period in review, CCP Group continued to maintain very strong capital and funding positions. 
“Your board is confident that the operating results for the second-half of this year would exceed those recorded herein and the group would maintain its pre-eminent status as one of the largest locally-owned corporations operating in the South Pacific with total assets of K772.57 million.