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Merchant Finance Launches Products To Assist SMEs

  Merchant Finance Limited has just launched a suite of innovative products designed to assist our small and medium enterprises. Reserve Bank of Fiji Governor Barry Whiteside launched the product
05 Mar 2016 08:30
Merchant Finance Launches Products To Assist SMEs
From left: Merchant Finance Limited chief executive Napolioni Batimala, Fijian Holdings Group chairman, Iowane Naiveli, Reserve Bank of Fiji Governor Barry Whiteside and Merchant Finance chairman, Isikei Tuituku during the launch of new products at the Holiday Inn Suva. Photo: CHRISTINE NIKOLA

 

Merchant Finance Limited has just launched a suite of innovative products designed to assist our small and medium enterprises.

Reserve Bank of Fiji Governor Barry Whiteside launched the product this week.

He said this was a testament to the confidence of our financial institutions as they continue to evolve and develop products that specifically meet the needs of a developing market.

Mr Whiteside said credit institutions in Fiji, like Merchant Finance, have typically operated on a smaller scale when compared to the banks.

He said credit institutions are relevant to customers in specific sectors – motor vehicles and other transportation equipment and machinery easily come to mind.

“Their scope of business has tended to be higher risk than the traditional banks and their cost of funds has also been higher,” he said.

“They have to work hard to keep their customers over the longer term as many tend to graduate to the banks as they become more successful.

“Indeed competition across the whole banking system has noticeably stepped up in the last five years and customer allegiance is almost a thing of the past.

“No doubt each bank and credit institution is now being judged by its level of service.

“Despite the intense competition, I think it is fair to say that our credit institutions have persevered in their niche areas and continue to perform well, backed by strong capital positions and satisfactory earnings performances.

“The combined balance sheet of the credit institutions recorded an annual growth of 33 per cent over 2015, to reach $335 million, with Merchant Finance Limited contributing almost half.

“At the end of last year, combined credit institutions’ net profit before tax stood at $18 million with capital and reserves growing 13 per cent to $72 million.”

 

Merchant Finance

This year, Merchant Finance enters its 24th year of serving the people of Fiji as a licensed credit institution.

The company has grown significantly, with an asset book of $21 million in 1992 to a publically reported $134 million in June 2015.

The profitability of the institution has also increased over the years noting an ‘all time high’ of just over $8 million in its last financial year.

Feedback:  christine.nikola@fijisun.com.fj

 

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