GIC Group (Global International Credit Group Limited, 01669) reported that profit attributable to shareholders for the six months ended 30 June 2026 fell 21.9% year-on-year to HK$21.82 million, driven by a 35.4% slide in interest income to HK$27.19 million as the loan book continued to contract.\n\nRevenue contraction reflected a 40.5% reduction in the average month-end balance of gross loans receivable to HK$438.10 million, following ongoing portfolio de-risking. Gross loans receivable plus repossessed assets stood at HK$418.50 million, down 20.1% from end-2025.\n\nAsset quality improved markedly: the Group booked a HK$5.64 million net reversal of impairment losses on loans, interest receivables and repossessed assets, compared with a HK$1.18 million charge a year earlier. Net interest margin expanded to 12.0% from 11.2% on higher lending rates.\n\nAdministrative expenses increased 14.4% to HK$11.88 million, mainly on higher staff costs. Finance costs, comprising lease-related interest, rose to HK$0.12 million. The effective tax rate eased to 13.4% from 15.2%.\n\nThe balance sheet remained debt-free with no outstanding interest-bearing borrowings. Cash and cash equivalents grew to HK$504.16 million from HK$400.80 million at end-2025, equivalent to 52.12% of total assets. Financial assets at fair value through profit or loss amounted to HK$11.83 million, or 1.2% of total assets.\n\nThe Board declared an interim dividend of HK2.2 cents and a special interim dividend of HK3.3 cents per share (total HK5.5 cents). Shareholders on record as of 18 September 2026 will receive payment on or about 9 October 2026.\n\nLooking ahead, management intends to leverage improved asset quality to resume selective loan growth, supported by a “robust” liquidity position. No material acquisitions, disposals or pledged assets were reported, and the Group remained free of contingent liabilities.
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