Credit Corporation reports K76.9 million profit

CREDIT Corporation Ltd (Credit Corp) announced a 249.5 per cent increase in net profit to K76.9 million for financial year 2021 (FY21).
Credit Corp chairman Richard Sinamoi said the company overcame volatile economic conditions to deliver a strong financial performance.
“Although the past two years presented ongoing challenges because of the impacts of the Coronavirus (Covid-19) pandemic, the group has continued to take positive steps to achieve its financial, operational and strategic objectives,” he added.
“The positive results benefited from disciplined control of net interest margins and operating costs, plus an increased focus on collections and credit procedures resulting in lower impairment costs.
“The group also received higher dividend income from its investment in BSP Financial Group Ltd.
“The company board declared total dividends of 22.6 toea per share, which included a special dividend of 12.2 toea per share in May.
Sinamoi said: “Our focus on disciplined execution has delivered positive outcomes for our customers and our shareholders, despite the challenges of Covid-19.
“While it has been a year of challenges, it has also been a year of achievement as we focused on our operational performance and progressing our strategy to transform Credit Corp into a fully-fledged bank. We have enhanced our management bench strength, and risk management systems and processes.
“Throughout the year, we also continued to focus on supporting our customers and the safety and job security of our people.
“At the same time, our profitability increased, and our balance sheet remained strong.
“There was also a strong turnaround in the group’s impairment costs which reduced significantly to K4.1 million, from K63 million in 2020 financial year as we focused on improving collections and enhancing credit procedures.
“Margins also improved with the group’s disciplined focus on managing funding costs and expenses.”