Papua New Guinean finance company Credit Corporation, the target of recent buyout interest from BSP, has posted increased profits of K106.11 million (US$50 million) in the financial year ending 31 December 2012.

Credit Corp’s Chairman, Garth McIlwain

The result represents a 252% increase on its 2011 profit result, although operating profit from the company’s core financing, property and dividend revenues increased by only 9%.

In a statement issued yesterday by Chairman Garth McIlwain, the POMSoX-listed company also valued its assets at over K1 billion (US$470 million) for the first time, due in part to improved valuations of the company’s property assets and stock market investments.

‘Ongoing trading prospects for 2013 are positive, with strong business volumes experienced during January and February 2013,’ said McIlwain. ‘The Board remains confident that 2013 will continue to produce good profitability.’

BSP made a non-binding K250 million (US$117 million) offer for Credit Corporation’s finance and leasing business at the end of January 2013, subject to due diligence. The offer, which Business Advantage PNG understands would require central bank approvals in four countries as well as the green light from PNG’s Independent Consumer & Competition Commission, has not yet been accepted by Credit Corporation’s board.

‘The Board is a long way from having strong feelings regarding the offer at this early stage,’ Credit Corporation Chairman Garth McIlwain told Business Advantage PNG.