Growth forecast

Kontiki Finance Ltd chairperson Daryl Tarte Picture: JONACANI LALAKOBAU/FILE

A FIJIAN majority owned company established in 2014 to provide Fijians with competitive and accessible financing for both consumers and small to medium size businesses has experienced immense growth over the past few years and is forecasting further growth.

Today Kontiki Finance Ltd’s net profit has increased 72 per cent to $5.365 million, making it one of the fastest growing listed companies in Fiji.

The company released its annual report for 2018 yesterday and company’s board chairman Daryl Tarte said this had been a milestone year for them.

Mr Tarte said the increase in profit enabled them to return a maiden interim dividend to its shareholders of one cent per share in July 2018.

“It is also pleasing to note that the group achieved an impressive return on shareholders’ equity of 37 per cent for a second consecutive year,” he said.

Mr Tarte said the company’s listing on the South Pacific Stock Exchange on July 4, this year enabled many more Fijians to be part of its growth story.

“The listing also lowers our company tax rate from to 10 per cent (from 20 per cent), a saving which directly benefit you, the shareholder,” he said.

“Other highlights include the opening of service centres in Lautoka and Labasa, extending our presence to customers in the West and North of Fiji.
Plus Kontiki Finance continues to form strong community partnerships in rugby, lawn bowls, surfing and child welfare,” he said.

He said support from deposit holders remained strong, supporting their lending growth.

“Term deposits have grown by 67 per cent over the year to more than $135m,” he said.

The company expects its profit to build strongly in the coming year.

“It is important to note that our share of the consumer and small to medium enterprise lending market (excluding home loans) is approximately just 10 per cent — leaving a long runway of potential growth ahead as we continue to build our brand and presence across Fiji.

In the background is a consensus that growth in the Fijian economy will remain strong, with the RBF Economic Review forecasting that the Fiji economy will grow by 3.2 per cent during 2018.

“With this momentum behind us, we are confident that your involvement with Kontiki Finance will continue to be rewarding, and I thank you for the faith you have shown in our company.”

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