Credit Corporation (SI) Limited

"Credit Corporation (SI) Limited (CCSIL) recorded an operating profit of SBD12.37 million, 6% above budget and 11% above same period in 2015 and net profit after tax of SBD9.62M, 11% above budget and 11% above same period in 2015."

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Credit Corporation (SI) Limited

  Tony Langston
Managing Director

Credit Corporation (SI) Limited (CCSIL) recorded an operating profit of SBD12.37 million, 6% above budget and 11% above same period in 2015 and net profit after tax of SBD9.62M, 11% above budget and 11% above same period in 2015.

This is another strong result and reflects our position as the market leader in the finance market in the Solomon Islands. Whilst finance volume of SBD63.82 million has reduced by 48% compared to same period in 2015, interest margins and our debt recovery have been satisfactory. Net operating income of SBD20.63 million was above budget by 9% and 7% above the same period in 2015. Of this total SBD17.64 million represents net finance income and SBD2.99 million represents other income. This is attributed to good business growth and effective cost control measures enforced by the business, notwithstanding a rise in our provisions which is being well managed and subject to write back when bad loans are either paid out or regularised.

Total expenditure of SBD8.26 million was above budget by 13% and 1% above same period in 2015 respectively. A rise in loan provision levels and inflationary factors have contributed to this movement. The cost to income ratio (exclusive of loan provisions) is maintained at 22.48% slight increase of 2.85% compared to same period in 2015. A total dividend of SBD4 million was paid in 2016.
The balance sheet remains active with evidence of good movements on both our gross loans of SBD169 million and Interest Bearing Term Deposits of SBD96 million.
The quality of our loan book is satisfactory and well provisioned in line with Central Bank of Solomon Islands
(CBSI) guidelines. The level of liquidity in the financial system remains excessive resulting in low deposit rates being offered in the market and total credit to private sector continues to be running above SBD2 billion (Source: CBSI). Credit

Corporation continues to pay high interest rates on deposits compared to the banks. The Company’s financial position continues to remain strong with net assets of SBD47 million. Apart from growing the business, we continue to focus strongly on risk and compliance matters on all aspects of our business including regulatory and statutory requirements and the level of public confidence in our business remains strong.

 

Solomon Islands economy grew by 3.2% in 2016 with projected growth of 3.3% in 2017. Log, fish and palm oil continue to dominate the export market likewise food, machineries and fuel dominate the import market. The country’s foreign reserves allows for 10 months’ cover throughout 2016. Inflation rate stood at minus 2.8% as at last quarter of 2016 (source: CBSI).

Credit Corporation (SI) Limited continues to play a very important role in the Solomon Islands’ economy since its inception in 2005 by
delivering attractive and competitive financial services to individuals and business. It is well positioned to continue the same in the future. Lastly but not the least I take this opportunity to register our sincere “thank you” to Mr Garth McIIwain, CBE and Mr Robert Allport who resigned as Chairman and Directors of Credit Corporation (SI) Limited and the Credit Corporation Group on 9th December 2016 to pursue their own dreams.

These gentlemen have served diligently and contributed positively to the company for many years and we wish them and their families well in their future endeavors. On a similar note, I welcome Sir Wilson Kamit, CBE and Mr Tor Bowen as new Chairman and Group CEO for Credit Corporation (SI) Limited. Both gentlemen have each over 30 years’ experience in the Financial Industry and we look

forward to their positive contributions to the company in the future.

Tony B. Langston
Managing Director


Credit Corporation Solomon Islands staff