Credit Corporation will pay shareholders 5.8 toea per share: Board

The National Business

CREDIT Corporation (PNG) Ltd shareholders of the will be paid a final dividend of 5.8 toea per ordinary share for financial year 2020 (FY20), its board says.
According to a market release, this represents a full year payout ratio of 70 per cent of core operating profit and continues the group’s strong track record of dividend payments over the past 42 years.
The group declared a total dividend of 18 toea per share including a special dividend of 12.2 toea per share in respect of the FY20.
It said the board elected to pass through all the net proceeds from the dividend received by the group from its investment in Bank of South Pacific to shareholders.
Shareholders are to be paid:

  • A FINAL dividend of 5.8 toea per ordinary share; and,
  • A SPECIAL dividend of 12.2 toea per ordinary share.

The planned processing dates for the dividends are:

  • Ex-date: May 31, 2021;
  • Record date: June 7, 2021; and,
  • Payout date: July 28, 2021.

Chairman Syd Yates praised the efforts of the group during trying times.
“During 2020, the group and our people displayed incredible resilience,” he said.
“Throughout the pandemic, we are proud that we maintained a strong commitment to supporting the small-to-medium enterprises (SMEs) market and to retaining all of our people in the face of the pandemic challenge,” he said.
“The group also adopted a prudent approach by increasing impairment provisions during FY20 and the board decided not to pay an interim dividend for the FY20 financial year, given the economic uncertainty at that time.
“As a result, the group has maintained the strength of its balance sheet, remains well capitalised and its liquidity and funding metrics are considerably above regulatory requirements.”
Yates said the board had determined a 5.8 toea final dividend per share was to be paid from the group’s FY20 core operating profit.
“The special dividend reflects our ongoing dedication to a robust dividend payout ratio and demonstrates our commitment to delivering shareholder value and our continued efforts to actively manage our capital,” he said.
“We believe that this special dividend is an appropriate way to reward shareholders for their ongoing support.”
Yates said Credit Corp continued to adopt a prudent approach to actively managing its loan portfolio.