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PORT MORESBY, Papua New Guinea (PNG Post-Courier, October 4) - Credit Corporation Ltd. of Papua New Guinea has recorded an 80 percent jump in net profit for the first six months of this year.

The K7.6 million (US$2.3 million) increase compares to K4.2 million (US$1.3 million) recorded in the first half of 2003.

Total assets of the company also increased , to K276,970,181 (US$86,414,696) in the six months up to June this year from K259,091,454 (US$80,836,534) recorded at the end of the first six months of last year.

Chairman Sir Henry Robert said the corporation’s earnings per share increased by 80 percent to 31 toea per share.

Credit Corporation’s net tangible assets backing the ordinary share increased 37 percent to K2.27 per share compared to the same for last year.

"All segments of the corporation have performed strongly," Sir Henry said. "The increase in profitability of the finance company in Papua New Guinea is due to decreasing interest rates.

"Due to a strong balance sheet, Credit Corporation (PNG) Limited will be able to continue to maximize earnings in the years ahead. The effectiveness of the corporation’s business strategy has proved itself in difficult economic times and has ensured that the corporation has a bright future."

He said the corporation’s long-term investment in Bank South Pacific had again returned a pleasing result with BSP announcing an after-tax profit of K45.524 million for the first year.

Bank South Pacific recently bought out New Zealand-based Westpac Bank’s operations on Niue.

The increase in the bank’s share price contributed K3.4 million to the corporation’s total profit.

Sir Henry said Credit Corporation (Fiji) Limited continued to perform well with increased profits of $F1.509 million in the first six months of this year. This represented a 60 percent improvement last year from figures recorded in 2003.

"The property companies also performed well with PNG’s premier and best-maintained commercial building Credit House, remained fully tenanted," he said.

"The executive residential apartments are also fully tenanted after experiencing a softening of the residential market during 2003."

October 5, 2004

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