Credit Corporation (Fiji) Limited

"Credit Corporation (Fiji) Ltd enjoyed a very successful 2016 despite the challenges presented by Cyclone Winston which hit Fiji in February 2016 causing loss of life and devastating damage in many parts of Fiji."

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Credit Corporation (Fiji) Limited

  Peter Dixon
Managing Director

Credit Corporation (Fiji) Ltd enjoyed a very successful 2016 despite the challenges presented by Cyclone Winston which hit Fiji in February 2016 causing loss of life and devastating damage in many parts of Fiji. Cyclone Winston was one of the largest cyclones ever to hit the Southern hemisphere and Fiji and its economy whilst shaken, demonstrated great resilience in bouncing back to reasonable health by year end.

The company recorded an operating profit before tax of F$9.62 million for the year, a 7.8% increase on the prior year’s result.
A record net profit after tax of F$7.57 million was returned for the year, a 6.3.% improvement on the 2015 result. Rising business volumes coupled with continued effective cost and delinquent account control were key factors in another very strong trading performance.

Despite a challenging and competitive operating environment in 2016, new business volumes reached a record high of F$64 million for the year, 5% up on 2015.

Sales growth was fuelled by the continuation of high levels of motor vehicle imports into Fiji, both new and second hand, and on-going significant levels of Government funding for the rehabilitation of roads and bridges country wide.

The company’s gross finance book stood at F$137.9 million as at year end, having increased by a healthy F$16.2 million or 13.3% from year end 2015. The company’s finance book remains well provisioned, with provisions adequate to cushion against any losses which may arise from unforeseen shocks.

 

The company remains in a strong financial position, with total assets of F$128.17 million and shareholder’s funds of F$35.37 million as at 31 December 2016. Capital
adequacy stood at 28.9% at year end, comfortably in excess of the Reserve Bank of Fiji’s prudential standard of 15%. Growth in the Fiji economy for 2016 was revised downwards to 2% by the RBF in the last quarter of the year reflecting the larger than expected negative impact on the economy from natural disasters earlier in the year. The soft growth target was underpinned by the major decline in agricultural production particularly from sugar, an industry which was badly affected by Cyclone Winston.

The motor vehicle market in Fiji seems to be undergoing fundamental change as we move into 2017. New vehicle sales and in turn new vehicle financing has increased markedly in the opening months of 2017, given the reduction in duty on new passenger vehicles below 2500 cc engine capacity from 1 January 2017. Sales of second hand imports which were so buoyant for a long period have slowed in 2017 given duty changes and indications are that the market may have reached saturation point. I take this opportunity to thank our experienced and hardworking team for the integral part they continue to play in the success of the company. On behalf of the Board I thank them for their efforts in making 2016 such a good year for the company and look forward to their valued contribution to our Fiji business in the year ahead.

Peter Dixon
Managing Director


Credit Corporation Fiji - Suva staff.