2015 proved to be a very successful year for Credit
Corporation (Fiji) Limited with the company continuing to
improve on its bottom line performance on the back of a
stable Fiji economy. The company recorded an operating
profit before tax of F$8.92 million (K11.73 million) for the
year, 13.6% up on the prior year’s result. A record net after
tax profit of F$7.12 million (K9.36 million) was recorded for
the year, a 10.7% improvement over 2014’s result and above
Despite increased competition through the entry of two new
licensed credit institutions, the company’s lending volumes
for the year exceeded F$60 million (K84.59 million) for the
first time in its history. A major contributing factor to the
increase in sales volumes was a focused effort from our
sales team, competitive product offerings and responsive
customer service across the business.
The company remains in a strong financial position, with total
assets of F$115.6 million (K162.98 million) and shareholder’s
funds of F$35.18 million (K49.59 million) as at 31 December
2015. Capital Adequacy ratio stood at 32.6% at year end, well
in excess of the Reserve Bank of Fiji’s prudential requirement,
underlining the financial health of the company.
Despite below average global growth in 2015, data for the
Fijian economy indicates that overall economic activity
remained quite strong in 2015 and the economy on track
to achieve 4% growth for the year. Consumption activity
remained buoyant as evidenced by growth in consumer
lending and strong consumer spending. Investment activity
was solidly driven by strong growth in construction activity.
Sectoral performances were mixed in 2015 with increased
activity in tourism, gold, cement and electricity production
while sugar, timber and fishing production declined. Certain
areas of primary production in Fiji were negatively affected
by prolonged drought conditions existing through the year.
The Fiji economy was expected to grow by 3.5% in 2016,
however the recent devastation of many parts of Fiji by
Cyclone Winston is expected to put a major dampener on
growth this year as Fiji recovers. Cyclone Winston’s impact
on agriculture alone is expected to exceed F$200 million
(K281.97 million), however luckily the main core of tourist
industry operations has been spared major damage.
The company’s finance book is well provisioned and
provisions sufficient to cushion against potential losses
which may arise from major shocks such as Cyclone Winston.
Understandably there has been a major slowdown in business
immediately post Cyclone Winston, however hopefully this
will prove to be a short term situation and business will
return to normal by mid 2016.