Credit Corporation records K11.3 million net profit

CREDIT Corporation Group’s finance segment achieved a net profit of K11.3 million, which was a significant improvement on the result from last year’s corresponding period.
Group chairman Richard Sinamoi said the company’s impairment costs was reduced by 94 per cent to K2.4 million in first half of 2021 compared to the last corresponding period.
“The decrease was largely attributed to impairment costs normalising this year, as compared to that experienced at the outset of the Coronavirus (Covid-19) pandemic recognised last year,” he said.
According to the company, delays in key economic projects in the country also impacted lending activities, particularly the demand for equipment financing.
Credit Corp’s property segment achieved a core operating profit of K5 million which was down 24.7 per cent on the previous corresponding period.
“This result was due to declining occupancies driven by the movement of multiple tenants from PNG who proceeded to right size and restructure their businesses, predominantly aid funded agencies, related to their own risk analysis of the Covid-19 situation in country,” Sinamoi said.
“Average occupancy levels for the property portfolio decreased to 74 per cent during first half of 2021 compared to 76 per cent in financial year 2020.”
However, the group’s commercial property Credit House, maintained occupancy levels at 100 per cent as at June 30, and it will remain at this occupancy for 2021 financial year with all tenants now locked in until December this year.
The valuation of shares in BSP increased by 2.63 per cent to K452.2 million compared to first half of 2020. Interim chief executive officer Danny Robinson said the group’s solid financial performance amid the current economic environment throughout the Pacific meant it was well placed to respond to the rapidly changing operating environment while continuing to support its customers.
“We are refreshing our strategic priorities to ensure we continue to build on our strong foundations and position us for the future.”