Credit Corporation (Vanuatu) Limited
Credit Corporation (Vanuatu) Limited had another good year
of operations recording an operating profit of Vatu 68.24
million (K1.96 million), an increase of 26.01% over the 2009
profit of Vatu 54.13million (K1.55 million). The increase in
profit is an indication of the strong growth in our business as
reflected on the Balance Sheet with shareholders' equity
increasing to Vatu 420.69 million (K12.08 million).
The positive growth has been achieved on the back of an
improved economy during the first half of the year, with
increases in commodity exports supported by high
international prices. Tourism has continued to play a major
part with visitor levels showing an increase in the latter part of
the year which is the peak season for arrivals. The motor
industry has seen unexpected growth in the number of second hand dealerships now established in Port Vila. We continue to
enjoy good relationships with the major franchised car
dealerships and maintain a good share of the market.
Generally, the signs of improvement in the economy started slowly as predicted, however we have a niche market in this small but thriving economy and the business has again experienced steady growth over the year.
The increased level of growth has created the need for an additional staff position bringing the number of locally employed staff to five. The new position is a senior person with added responsibilities. During the year, we also took on a replacement staff member, an ex banker who has already proven resourceful.
The Reserve Bank of Vanuatu announced that annual GDP growth projections for 2010 were revised downwards to 3.0 percent, whilst the projection for 2011 has been revised upwards to 4.2%. Import cover remained well above the Reserve Bank's minimum comfortable threshold. Interest rates on deposits saw a slight decline whilst lending rates remained steady.
The year saw another change in Government through a vote of no-confidence, however generally these changes have little bearing on the business sector. In line with the Reserve Bank's growth projections, we look forward to another year of successful operations and increased profitability.
Orai Gairo
Port Vila
