Credit Corporation has announced its financial results for the first half of the financial year 2024, revealing significant growth in critical performance indicators.
For the six-month period ending June 2024, the company reported a Group Core Operating Profit (COP) of K67.8 million, representing a 5.1% increase compared to the same period last year (1H23: K64.6 million).
The company’s Net Profit After Tax (NPAT) soared to K183.6 million, reflecting a remarkable 147.2% rise from K74.3 million in the previous corresponding period.
Earnings per share also surged, reaching 59.6 toea, up from 24.1 toea in 1H23, underpinning the strong financial health of the Group.
Despite a notable decrease of 24.5% in Dividend Income to K108.5 million from K143.9 million in 1H23, the Group maintained a solid capital position, allowing it to increase its interim dividend to 12.0 toea per share from 11.0 toea previously.
Chair Lady Winifred Kamit emphasized the Group’s resilience and strategic direction, stating: “The first half of 2024 has seen an overall solid performance by the Group. We are pleased with the key growth drivers as we transitioned to becoming a bank during the period under review.” This shift towards banking aligns with Credit Corporation’s broader strategic goals.
Responding to the results, Chief Executive Officer Danny Robinson highlighted the combined effects of higher interest income and rental yields that contributed to the enhanced revenue. He noted, however, that while investment income moderated, the Group is well-positioned for future growth.
The financial metrics further reflect the corporation’s strong performance: the Group Return on Equity rose to 9.2% from 8.3% in 1H23, while the Property Division’s COP climbed by 25.3% to K8.5 million. The finance division, however, reported a slight decrease in NPAT to K14.0 million, down 8.4% from the previous year, indicating the varied performance across segments.
The timing for the upcoming dividend payment has been set, with an Ex-Date of 19 September 2024, a Record Date of 26 September 2024, and a Payment Date of 24 October 2024.
In a separate announcement, Credit Corporation also detailed its strategic decision to exit its Vanuatu finance operations, a move aimed at simplifying its structure and focusing on sustainable growth. Robinson commented, “We are taking another step in becoming a simpler, stronger, and sustainable financial services group. The proposed sale will provide an opportunity for new investment into the business and potential new services for customers.” Chief Executive Officer Danny Robinson said.
As it looks to the future, Credit Corporation remains committed to expanding its footprint in Papua New Guinea, Fiji, and the Solomon Islands, positioning itself as a reliable financial partner in the region.
