2015 was an extremely challenging year for Credit
Corporation (Vanuatu) Limited, with the company returning
an operating profit of Vatu 35.35 million (K955,820) for the
year, a 44% decrease on the prior year result.
During March 2015, Tropical Cyclone Pam, a category 5
cyclone devastated Vanuatu. Very few business escaped
unscathed and it will be some years until the country fully
recovers from the devastation caused. Although the business
sector is recovering, it is a slow process. Credit Corporation
has moved quickly to assist our clients on a case by case
basis and hopefully with this assistance their business will
return to normal as quickly as possible.
All areas of the Vanuatu economy are under pressure with
many hotels still to reopen and as a follow on tourism
numbers are significantly down on previous years. It is hoped
that with more and more hotels reopening and the airport
being brought up to international standard the economy will
start to improve.
As a result of the cyclone, our arrears are a concern. However
processes were put in place during the year to manage
and improve on this difficult situation and our portfolio is
adequately provisioned. Operational expenses have been
well controlled in 2015 and although the company loan book
reduced in 2015 the company remains in a strong financial
position with total assets of Vatu 665.98 million (K18 million)
and shareholders’ funds of Vatu 458.43 million (K12 million)
as at 31 December 2015.
It is hoped that the Vanuatu economy will continue to record
positive growth as the global economy improves and the
country’s recovery continues. The bulk of this rebuilding
is being funded by development partners. Several large
infrastructure projects are getting underway and tourism
and agriculture are slowly recovering so there should be
some growth in 2016, although inflation is forecast to rise in
line with these expectations of stronger growth.
While 2015 was not a successful year for Credit Corporation
(Vanuatu) Limited we seem to have seen the worst of it and
2016 looks to be a better year as we will be rebuilding and
expanding our business, promoting new products, training
staff, revisiting clients and targeting well run business in the
small to medium size sector.