It was a pleasure and a privilege to be appointed Chairman of Credit Corporation PNG two months ago and to have this opportunity to provide an overview of the many positive developments which have occurred within the Group over the past year.
I look forward to playing a part in Credit Corporation’s ongoing prosperity as we continue to deliver for our customers and our shareholders into the future.
FY18 was truly an eventful year for Credit Corporation. It was a year in which your new Board focused on stabilizing and enhancing the Group’s financial performance, and commenced planning for a stronger future for the Group.
As we celebrated our 40th anniversary, the Group marked this milestone with solid financial achievements and laid strong foundations for the future.
To establish these foundations, the Board set a new strategic direction for the next five years, which was accompanied by a refreshed corporate vision – to be the best performing financier in every market in which we operate in terms of customer experience and profitability
Delivering for our customers
As the largest Pacific-originated finance company, Credit Corporation has a proud history of operating in and delivering for our customers. Building on our long-standing commitment to our customers, the new Board’s refreshed strategic direction focused on enhancing the customer experience in our finance business. This will include development of a broader range of lending products that deliver for our customers while supporting greater business efficiency.
Given our deep knowledge of expertise operating finance businesses in regulated markets throughout the South Pacific, we hope to create a customer experience that will appeal to retail and business customers at any stage of life.
This approach will deliver benefits for customers, as well as shareholders and employees, further cementing Credit Corporation’s long-standing commitment to helping customers achieve their financial objectives.
Delivering for our shareholders
Beyond a year of intense activity aimed at reshaping our organisation and improving the customer experience, Credit Corporation’s people also delivered a strong financial performance.
The Group recorded a 33% increase in net profit after tax of K98m in FY18. The core profit also increased by 14% to K86m reflecting a stable performance of the underlying business.
The Group achieved growth in the loan book within the finance division, along with improved occupancy driving enhanced rental income in the property division.
During the year, the Board declared an interim dividend of 6 toea per share, representing a 50% increase on the previous corresponding period. In keeping with previous practice, the Board is expected to declare a final dividend after it meets in June 2019. Credit Corporation has now declared a dividend to shareholders for 40 consecutive years.
For the past 40 years, Credit Corporation’s people have been focused on lifting performance and enhancing shareholder value.
The success of these efforts has been demonstrated by the fact that K1,000 invested in Credit Corporation at inception would be worth at least K166,000 today, representing a return of 18% per annum*.
The current Board and management team is committed to ensuring this enviable track record of returns continues into the future.
New skills and experience
We have strengthened our management team by bringing in new executive talent to ensure we have the right leaders in place to deliver on our refined strategy.
Peter Aitsi was appointed CEO of the Group and also to the Boards of the Group’s finance companies operating in Fiji, Vanuatu and Solomon Islands. Peter has made a tremendous contribution since joining the Group, driving the development of the Strategic Plan, setting new staff performance benchmarks linked to our strategy and budget and bringing into the organisation a highly professional management team with the skills and experience to deliver on our business objectives.
The Group has also appointed a new Chief Financial Officer Jeff Undah and a new Head of Credit David Wenham. The Group is also currently recruiting for a General Manager for its property division.