Credit Corp records K22mil net profit for 2020 financial year

THE Credit Corporation PNG has recorded a net profit of K22 million and core operating profit of K25.66mil for the 2020 financial year.
The company said the results reflected the challenges of the Covid-19 pandemic during the year and the group’s commitment to support small-medium enterprises.
Chief executive officer Peter Aitsi said: “Earnings have been significantly impacted by higher impairment charges as a result of a decline in economic activity in the Pacific and globally.
“The group is well capitalised and its liquidity and funding metrics are considerably above regulatory requirements.
“During the period, the total risk weighted capital ratio increased to 32.6 per cent. Gross loan receivables (net of unearned interest) reduced by K54m or 8 per cent in 2020 due to our prudent approach to lending in the current environment.
“While stressed exposures increased as a percentage of gross loans, the group has adopted a prudent approach by increasing impairment provisions from K64mil to K119mil.
“Whilst assisting our valued customers as their businesses rebounded from the Covid-19-related challenges, we have also established a new asset management unit to implement recovery strategies and manage any stressed exposures.”
He said the company made “solid progress on delivering strategic initiatives to transform the business and drive future revenue growth”
“These initiatives included introducing new technology, adding resources and enhancing systems and processes within the risk and compliance team, while completing further appointments in the executive team.
“The group also pursued a strategic acquisition opportunity via a competitive bidding process but was unsuccessful.
“We continue to make positive changes within the Group to refocus on our core businesses and key markets, and to improve the group’s performance.”