Monday, February 26, 2024

Credit Bureau Asia FY2023 Earning Result

Credit Bureau Asia ("CBA") reported their FY2023 earning result this morning [here].  Here is a quick dive into the numbers:

Numbers in S$ million unless stated otherwise.
Twelve Months Ending 31 Dec 2023 31 Dec 2022 % Change
Revenue 54.17 48.62 11.4
Profit Before Tax 26.68 22.85 16.8
Net Profit 22.02 19.29 14.2
EPS (in cents) 4.27 3.65 17.0
DPS (in cents) 3.70 3.40 8.8

CBA operates credit bureaus in Singapore, Cambodia and Myanmar.  Revenue earned here is categorized under financial institution data ("FI Data").  CBA reported broad-based increase in revenue to the Singapore FI Data business, as well as revenue in tandem with growth of the Camobodia economy.  Revenue from the sale of reports increased to S$23.0M (FY22: S$20.0M), up 14.9% y/y, mainly attributed to the increase in bulk review reports and new credit application reports sold to bureau members.  Revenue from consumer direct and employment check increased 38.5% as a result of increase in price and quantity of reports sold to consumers and employers.

CBA also has joint venture partnerships with Dun & Bradstreet which provides customers with a range of business information and risk management services.  Revenue earned here is categorized under non-financial institutional data ("Non-FI Data").  CBA reported their Non-FI Data business continues to expand in Singapore and Malaysia.  Revenue from CBA's global credit risk management solutions increased to S$17.5M (FY22: S$15.5M), up 13.3% y/y, mainly driven by demand from increased compliance and risk management requirements from both local and global customers.  Revenue from sale of reports under CBA's Singapore Commercial Credit Bureau and other bureaus increased to S$8.3M (FY22: S$7.4M), up 10.9% y/y, mainly as a result of increase in quantity of report sold and number of customers.

The company is looking to increase market penetration by introducing new products and services to customers.

My Thoughts
CBA's revenue between FI Data business and Non-FI Data business is roughly evenly split (S$25.78M vs. S$23.03M).  I believe the launch of digital banks in Singapore is one primary contributor to the FI Data business.  FI Data profit margin is higher (59.7%) versus Non-FI Data (50.2%).  Happy to see the company making headway.  A bump-up in the final dividend to two cents is a pleasant gift.  Will continue to monitor for opportunities to stock up.

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