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Credit Bureau Asia sees 5.5% rise in 1H2021 earnings; declares maiden dividend of 1.7 cents

Amala Balakrishner
Amala Balakrishner8/5/2021 06:43 PM GMT+08  • 3 min read
Credit Bureau Asia sees 5.5% rise in 1H2021 earnings; declares maiden dividend of 1.7 cents
The group has declared an interim dividend of 1.7 cents per share – which represents about 100% of its PATMI of $3.9 million.
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Credit Bureau Asia (CBA) reported earnings of $3.9 million in its 1HFY21 ended June, a 5.5% increase from the $3.7 million posted in the year before.

On a fully diluted basis, this translates to earnings per share of 1.70 cents, compared to 1.85 cents in 1HFY20.

With this, the group’s net asset value per ordinary share came in at 20.54 cents on Jun 30, up from 18.93 cents on Dec 30.

Revenue for the first six months of the year grew 8.5% to $22.3 million on the back of strong performance of both its financial institution (FI) and non-financial (non-FI) institution data businesses.

Revenue from the group’s FI data segment was up 13.4% to $9.7 million thanks to strong demand from the financial industry such as in new credit card applications and credit reviews.

Similarly, revenue from its non-FI data segment was up 4.9% to $12.6 million. A key lift was from its global credit risk management solutions (+4.5% to $7.2 million) that was driven mainly by demand from increased compliance and risk management requirements from both local and global customers.

Aside from this, the segment saw an increase in the sale of reports under the Singapore Commercial Credit Bureau (SCCB) and other bureaus (+1.8% to $3.7 million) as well as higher revenue from other non-ancillary non-FI data services (+14.2% to $1.7 million).

In this time, the group’s employee benefits expenses were up by 8.7% to $5.6 million, due to an increase in headcount in the IT and data analytics function of its FI data business. Meanwhile depreciation and amortisation expenses were stable at $2.1 million.

Other operating expenses were up by 5% to $4.78 million in 1HFY21.

Such expenses from the FI data business was up 2.8% to $1.39 million due to increase in royalty expenses following the acquisition of a subsidiary as well as higher customer entertainment and administrative expenses.

Other operating expenses from its non-FI data business was up 6% to $3.4 million on the back of higher IT security related expenses and foreign exchange losses.

CBA’s share of joint ventures was up 17.1% to $0.53 million in 1HFY21.

“Our share of results related to our Cambodia investment increased by $0.12 million, driven by increase in quantity of credit reports sold to bureau members due to the picking up of credit activities and the introduction of K-Score in the end of last year,” the group explains in its results filing.

Over in Myanmar, its share of losses was up $0.04 million following higher operating costs.

As at June 30, CBA’s cash and cash equivalents stood at $50.6 million, up from $24.5 million in the year before.

The group has declared an interim dividend of 1.7 cents per share – which represents about 100% of its PATMI of $3.9 million.

The maiden pay out exceeds the group’s dividend policy stated in its prospectus of recommending at least 90.0% of net profit after tax attributable to its shareholders for the financial years ending FY2021 and FY2022.

Going forward, CBA says its “business model is defensive to business cycles and pandemics and despite Covid-19, our business continues to grow and perform well during this period”.

It notes that travel restrictions could present some inconvenience as it looks to forge alliances and expand its business and footprint in the region.

Still it expects positive contributions from the commencement of its subsidiary’s operations at Moneylenders Credit Bureau.

The subsidiary – Credit Bureau Singapore - is now close to finalising agreements with the Digital Bank Licensees.

As for its investments in Myanmar, the group says it is working closely with the relevant stakeholders and preparing Myanmar Credit Bureau to be fully operational before the end of FY2021.

Shares in CBA closed down 2 cents or 1.52% at $1.30 on Aug 5, before its results announcement.

Cover image: file photo

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