Credit Bureau Asia Limited Responds to SIAS Queries: Key Updates and Insights
Credit Bureau Asia Limited Responds to SIAS Queries: A Deep Dive into Operational and Financial Matters
In a recent announcement, Credit Bureau Asia Limited (the “Company”) addressed several queries from the Securities Investors Association Singapore (“SIAS”) regarding its annual report for the financial year ended 31 December 2024. The responses provided valuable insights into the company’s operations, financials, and future plans.
Key Developments and Licenses
The company revealed that its subsidiary, Credit Bureau (Singapore) Pte Ltd (“CBS”), has been issued a license by the Monetary Authority of Singapore (MAS) to carry on a consumer credit reporting business, effective 1 April 2025. This license, as per the Credit Bureau Act 2016, enables CBS to broaden its services, subject to MAS approval.
New License and Business Expansion
In response to SIAS queries, the company clarified that the license issued to CBS is new and distinct from existing licenses held by the group. The management noted that the group regularly reviews its product and service offerings to cater to market demands. Currently, they provide consumer credit reports with Financial Institution (FI) data and various commercial credit reports with non-FI data to their diverse customer base.
Impact of Global Economic Slowdown
Regarding the potential impact of macroeconomic volatility on its business segments, the company assured that its defensive business model has been resilient during external economic factors such as the 2018 financial crisis and the 2020 Covid-19 pandemic. However, the company cannot guarantee complete immunity to future economic downturns.
Vietnam Market Entry and Progress Update
The company also provided updates on its joint venture with FiinGroup JSC in Vietnam, which was established four years ago. Although discussions are ongoing, there has been no tangible progress made towards commencing operations in the country.
Attendance of Directors at Board Meetings
The company provided explanations for absences and participation of its directors in board meetings and committee discussions. Notably, the Executive Chairman and CEO, Mr. Koo Chiang, was absent from a board meeting due to an overseas business trip. The company confirmed that absent directors did not participate remotely via tele or videoconferencing.
Financials and Cash Allocation
At the end of 2024, the company held $67 million in cash and bank balances, an increase of $9.7 million from the previous year. The board also considered increasing dividend payouts or returning capital to shareholders through various means.
Key Takeaways for Investors
Some key highlights and potential concerns for investors include:
- The company obtained a new license from MAS for consumer credit reporting, which may enable it to broaden services.
- The company’s defensive business model helps mitigate risks during economic downturns.
- The group has made progress in discussions with FiinGroup JSC for a potential joint venture in Vietnam.
- The Board will continue to review options for returning capital to shareholders.
Disclaimer
This article is based on publicly available information and company announcements. The information provided is for general awareness and educational purposes only. It should not be considered as investment advice or a recommendation to buy or sell shares. For accurate and up-to-date information, please consult official company announcements and financial reports.
Readers should note that:
The information provided is for general awareness and educational purposes only.
The article does not constitute an offer to buy or sell shares.
Share prices may fluctuate based on various market and economic factors.
Always conduct your own research or consult with a financial advisor before making investment decisions.
For those who are unfamiliar, here is a brief business overview of Credit Bureau Asia Limited:
Credit Bureau Asia Limited operates in the credit reporting industry, providing services to both consumer and commercial credit risk segments. The company has two main business segments: the financial institutions (“FI”) data business and the non-FI data business.
Will this information move the share price?
The information provided may be of interest to shareholders, particularly regarding the company’s licensing, business operations, and potential impact of macroeconomic factors on its operations.
What you need to know about Credit Bureau Asia Limited’s recent developments
The company operates two main business segments: the financial institutions (“FI”) data business and the non-FI data business, serving both consumer and commercial credit risk segments.
Key Points:
- CBS was issued a license by MAS to carry on a consumer credit reporting business.
- The company provides consumer credit reports with FI data and various commercial credit reports with non-FI data.
- The group has a defensive business model, which has been resilient during external economic factors.
- The company holds \$67 million in cash and bank balances as of 2024.
- No decisions have been taken regarding increasing dividend payouts or share buybacks.
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The information provided in this article is based on publicly available data and company announcements. Readers are advised to conduct their own research or consult with a financial advisor before making any investment decisions.
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