Credit Corporation (Fiji) Limited
Fiji’s GDP grew by an estimated 3.2% in 2018, making nine consecutive years of positive growth, and it is set to increase by 3.9% in 2019. Economic sectoral performances were generally upbeat, with production from the primary and manufacturing industries on the rise and visitor arrivals up to record levels. Motor vehicle sales continue to be strong, with new and second-hand motor vehicle registrations increasing by 19.4% and 11.4% respectively in 2018. With the National Elections now over, business confidence is expected to normalise and stable economic conditions are predicted to continue into 2019. There is ongoing competitive pressure in the asset finance marketplace through competitors offering lower interest rates and fees as they attempt to build market share. With greater levels of competition in Fiji, the focus will be on retaining our existing clients by fully leveraging the Group’s branch network and extracting full value in terms of improved levels of customer service as we implement the upgrade of our operating platform.
Fiji’s Performance in FY18
Credit Corporation Fiji’s lending volumes grew to a record $86.5m (K135.7m) in FY18, representing a 17% increase on the previous corresponding period. The business unit achieved NPAT of FJD$9.9m (K15.5m), representing a 18% increase on the prior year, which was ahead of expectations. It is anticipated that margins will come under further pressure as liquidity tightens in 2019 due to increased competition in the market.