Whilst Bank South Pacific (BSP), the company that failed to acquire Credit Corporation (CC) earlier this year announced a sound financial year ending results for 2013, CC and its subsidiaries, in a show to boost investor confidence, netted a profit after tax of K59.11 million for the year ended 31 December 2013.
The Group recorded a core operating profit of K85.20 million for the year, 6% above the 2012 result.
“The 2013 financial year was one of achievement and strong performance for the Credit Corporation (PNG) Limited Group. The growth of the Papua New Guinea economy, driven largely as a result of the US$19 billion Exxon Mobil led PNGLNG project continued during 2013.
“This project has resulted in continuing demand for both our core businesses of finance and property. This demand is however expected to slow with the PNGLNG project rapidly moving from its construction phase into production” says Robert Allport, the chief executive officer of CC.
However, CC, like any other major shareholders of BSP, has been hit by the recent decline in BSP share prices that had some negative impacts on the company’s investment portfolio.“Included in the 2013 result is an adjustment of K6.86 million which was booked against the profit and loss account due to a negative adjustment in the Group’s investment property portfolio. Also a negative adjustment of K1.73 million was made largely due to the reduction in value of BSP shares on the Port Moresby Stock Exchange. We also incurred extraordinary expenditure of K1.92 million owing to the BSP offer to purchase the finance company subsidiaries of the Group that was rejected by shareholders at a Special Meeting on the 16th October 2013” says Allport
Despite that, the company’s shareholders’ equity has grown to a record K1.042 billion.
The company’s on ‘Market Share Buy Back Scheme, introduced in 2010 is also being extended to 2014 which Allport notes has become popular with shareholders because of no brokerage or other fees being charged.