Credit Corp reports improved financial year in 2023

By NATHAN WOTI
THE Credit Corporation Group recorded an improved financial performance last year, with a net profit of K134.9 million (up 56 per cent), while its core operating profit increased by 7.1 per cent to K106 million, says Group chairman Dr Albert Mellam.
“All of our divisions made solid contributions to the Group’s strong 2023 financial performance,” he said.
“We have also maintained diligent focus on efficient operations and managing costs within the business, which has contributed to enhanced profitability and ultimately, improved returns to our shareholders.”
Final dividend declared was 13.1 toea per share, taking total dividends for 2023 to 24.1 toea per share – an increase of 7.1 per cent.
Its return on equity is at 11.1 per cent, up 4 per cent for the 2023 financial year.
Growth in net operating income and disciplined cost control across the business supported the improved financial performance for the 12 months to Dec 2023, reflecting the Group’s commitment to sustainable growth.
The Group maintained a strong capital position, enabling the Board to declare a Final Dividend of 13.1 toea per share.
Furthermore, The Group’s finance segment made a net profit after tax of K30.1 million, a decrease of 17.8 per cent compared to the prior corresponding period. Total loan provisions stood at K56.9 million.
It also reported a 10 per cent growth in deposits to K511 million and a 19.1 per cent increase in the net loan book to K492.7 million.
The Property division reported a core operating profit of K14.9 million, up 11 per cent from K13.4 million in the prior corresponding period. According to the Group, this improvement in performance has been the result of an increase in rental yields to 13.9 per cent and stable average occupancy rates.
Its investment recorded a 10.2 per cent increase in valuations for listed investments. Dividend income increased by 5.5 per cent for the year, to K64.9 million.
Chief executive officer Danny Robinson said that the Group would continue to focus on strengthening operational performance through prudent and disciplined management of credit risks and operating costs.
“Our financial performance in the 2023 financial year shows that the work we are doing to streamline and strengthen our operations while we pursue new growth opportunities is gathering momentum within the business.”
“We have also made solid progress in implementing the key initiatives in our five-year strategy to upgrade our core banking system, introduce new products, enhance our processes, and up-skill our people,” Robinson said.