Credit Bureau Asia (CBA) TCU has reported earnings of $4.4 million for the 2HFY2022 ended Dec 31, 2022, 12.7% higher than earnings of $3.9 million in the corresponding period the year before.
This brings CBA’s earnings for the FY2022 to $8.4 million, up 7.2% y-o-y.
During the 2HFY2022, revenue increased by 8.8% y-o-y to $25.2 million as revenue from both its financial institution (FI) data business and non-FI data business grew during the period.
Revenue from the FI data business for the six-month period mainly grew due to the higher sale of reports. That was, in turn, mainly attributable to the increase in quantity of new credit application reports and bulk review reports sold to bureau members. Revenue from scoring products also grew. The higher revenue from the FI data business was offset by the decline in the business’ other revenue as a result of less customised product revenue from CBA data solutions.
Revenue from CBA’s non-FI data business grew as the business’ global credit risk management solutions revenue and revenue from the sale of reports from the Singapore Commercial Credit Bureau and other bureaus increased. Revenue from other auxiliary services, being sales and marketing solutions, receivables management, and other revenue also grew. Meanwhile, the business’ collection revenue remained “relatively stable”.
Other operating income for the period fell by 14.2% y-o-y to $499,073 due to the decrease in government grants and lower foreign exchange (forex) gains.
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Share of result of joint ventures inched up by 0.7% y-o-y to $662,238.
Profit before tax for the 2HFY2022 increased by 8.7% y-o-y to $11.7 million.
FY2022 revenue increased by 7.1% y-o-y to $48.6 million due to higher revenue from both the group’s FI data business and non-FI data business.
Other operating income for the FY2022 fell by 32.1% y-o-y to $911,514 fell due to the lower government grants issued and lower forex gains.
FY2022 share of result of joint ventures increased by 24.5% y-o-y to $1.5 million as the group’s share of results from its Cambodia investment grew due to the increase in quantity of credit reports sold to bureau members. Meanwhile, the group’s share of loss related to its Myanmar investment remained “relatively stable”.
FY2022 profit before tax increased by 5.3% y-o-y to $22.9 million.
“All key business units delivered revenue and profit growth riding on the opening of global economies, and we ended the year with a strong finish,” says Kevin Koo, founder and CBA’s executive chairman.
For the period, the board is recommending a final dividend of 1.7 cents per share, bringing CBA’s full-year dividend to 3.4 cents. The final dividend will be paid out on May 19.
“With Covid-19 becoming endemic, we are well positioned to capitalize from the resumption of economic activities across the globe,” notes Koo.
As at Dec 31, 2022, cash and cash equivalents stood at $34.7 million.
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In CBA’s statement, the group notes that its commercial credit and risk solutions business in Singapore and Malaysia continues to see “healthy demand” especially from overseas customers. This is in line with the improvement in business sentiments globally, adds the group.
During the FY2022, all five Singapore-licensed digital banks joined as members of Credit Bureau Singapore. This is expected to have a “material and positive contribution” to CBA’s revenue and profitability for FY2023, says the group.
In Cambodia, the group says it expects the business’ growth momentum to continue going forward. This is “fueled by an economy that is expected to grow by more than 5% in 2023”. Meanwhile, the business in Myanmar resumed its operations fully since November. “As the sole-licensed credit bureau in a country of more than 53 million people, we believe there is great potential for Myanmar Credit Bureau in the near future.”
Shares in CBA closed flat at 99 cents on Feb 23.
