Credit Bureau Asia reports 1H21 net profit rose 5.5 percent amid credit review demand

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Credit Bureau Asia reported Thursday its first half net profit, or profit attributable to the owners, increased 5.5 percent on-year amid strong performance for both the financial and non-financial institution data businesses.

Revenue for the January-to-June period rose 8.5 percent on-year to S$22.26 million, the company said in a filing to SGX.

The financial institution data business posted a 13.4 percent on-year increase in revenue for the first half to S$9.7 million, mainly on strong demand from the financial industry especially in new credit applications and credit reviews, Credit Bureau Asia said.

The non-financial institution data business reported first half revenue rose 4.9 percent on-year to S$12.6 million, while revenue from global credit risk management services increased 4.5 percent on-year to S$7.2 million, mainly on increased demand for compliance and risk management requirements from both local and global customers, the filing said.

Credit Bureau Asia declared an interim dividend of 1.70 Singapore cents, marking around 100 percent of the group’s profit after tax and minority interests (Patmi) for the period, exceeding its stated dividend policy in its November prospectus recommending at least 90 percent of net profit after tax attributable to its shareholders for 2021 and 2022.

Outlook

In its outlook, the company highlighted the impact of the Covid-19 pandemic and travel restrictions.

“Our business model is defensive to business cycles and pandemics and despite Covid-19, our business continues to grow and perform well during this period. However, travel restriction could present some inconvenience as we continue to seek opportunities and forge alliances to grow our business and footprint in the region,” Credit Bureau Asia said, although it noted virtual meetings have mitigated some of the impact.

“We are currently in discussions with several parties in the region for strategic collaboration to expand our business,” it added.

Subsidiary Credit Bureau Singapore began operating the Moneylenders Credit Bureau at the start of July, with positive contributions expected in the next financial year, the statement said. The company said it is also near agreements with digital bank licensees.

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