Credit Direct borrowing soar high by 15.9% as assets decrease to 2.5bn in 2021 financial results

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By Philemon Adedeji

Credit Direct Limited, a member of FCMB Group PLC as reported 15.9 per cent increase in its borrowings to N17.264 billion achieved in 2021 from N14.893 billion achieved in 2020 in its statement of financial position ended 30th December 2021.

This is even as the company assets(property, plant and equipment) decreased to 2.6 per cent from N2.553 billion achieved in 2020 to N2.486  billion achieved in 2021, As other assets  declined to 10.2 per cent N509.8 million achieved in 2020 to N457.9 million achieved in 2021.

Also, net impairment credit for the financial assets of the company depreciated to 21.9 per cent, from N1.691 billion in corresponding period 2020 to N1. 320 billion recorded in the previous year ,2021.

The growth in borrowings drives dividend payable to shareholders to N1.560 billion  in 2021, from N1.300 billion dividend paid in 2020, reflecting an increase of 20 per cent.

Deferred tax liabilities reported by the company increased largely to a 46.4 per cent, from N95.4 million in corresponding period 2020 to N139.8 million in previous year 2021, as current income tax liabilities gained a 17.8 per cent to N1.18 billion in 2021 from N999.9 million generated in the corresponding year 2020.

But, employees benefits had a challenge during the period under review which depreciated to a 143 per cent to N7.091 million in previous 2021 from N8.276 million derived in 2020.

However, the company total liabilities stood at the sum of N21.3 billion in 2021 from N18.37 billion in 2020, representing an increase of 15.9 per cent.

The company reported loans and advances which given out in 2020 to N20.8 billion from N23.370 billion given out in the previous year, an increase of 12.5 per cent.

Similarly, total assets declared by the company stood at the sum of  N29.423 billion in 2021 from N26.051 billion recorded in 2020, representing a growth of 12.9 per cent

In addition, cash and equivalent of the company grew significantly to 41.9 per cent which moved  to N2.84 billion in 2021 from N2.001 billion in 2030.

From the profit and loss figures, the company net revenue reported rose a bit to a 3.6 per cent from N10.074 billion recorded in 2020 to N10.434 billion recorded in 2021,as interest income of the company appreciated by  4 per cent from N9.370 billion in 2020 to N9.747 billion achieved in 2021.

Profit After Tax for the period gained a 31.5 per cent which increased to N2.007 billion in previous year of 2021 from N1.527 billion in corresponding year 2020.