GM Finance's Review
Credit Corporation Finance Limited has again produced an excellent result for PNG in 2012. An operating profit at K21.11 million (2011: K18.68 million) was returned for the year and net profit after tax for the year was K14.83 million (2011: K13.07 million). New business written for the period totalled K223.37 million split between Lae K113.51 million (50.82%), Port Moresby K91.66 million (41.03%) and Kokopo K18.20 million (8.15%). In addition to obtaining some large and desirable clients in both Lae and Port Moresby, the PNGLNG project has again played a large part in the overall result. This will slow down over the next 12 months as Tari & Hides projects have already commenced demobilising.
Delinquent accounts have also been held to a very acceptable level, 2.72% of the total book. This is a very pleasing result in light of the ongoing tough market, especially in the trucking sector. Losses for the year were K51,543 in total which is only 0.02% of the closing book balance. This indicates excellent work by all staff approving new business over the past years and highlights the solid training and expertise of our lending and collection staff.
In the coming year, it will be difficult to maintain the results for the past 12 months due to the downturn in the transport industry bought upon by the Hides & Tari demobilisations. We continue to actively seek new clients as well as retaining existing clients. We will be promoting our business more in outer laying areas and trying to establish sound client bases in these regions for the future. With this in mind, Credit Corporation Finance Limited will still be a major contributor to the 2013 results.
General Manager Finance