GFNZ first-half profit soars 423% on lending growth

Monday 14th December 2015

GFNZ Group, the finance company formerly known as Geneva Finance, posted a 423 percent jump in first-half profit as the lender benefited from an expanded loan book.

Net profit rose to $1.5 million, or 0.31 cents per share, in the six months ended Sept. 30 from $288,000, or 0.07 cents, a year earlier, the Auckland-based company said in a statement. Net interest income climbed 71 percent to $2.5 million, and the lender's loan book expanded to $48.9 million as at Sept. 30 from $35.7 million a year earlier. Revenue grew 31 percent to $5.8 million.

"Overall, the $1.5 million after-tax profit is a satisfying result that represents an improvement on the reported results of the two prior periods," managing director David O'Connell said. "The group is now actively looking to build on the success of the core business and explore expansion opportunities."

GFNZ was one of the few finance companies to survive the sector's collapse last decade, freezing interest payments on its debenture stock in November 2007, when it owed some $132.4 million to investors. Those investors have since been repaid, including $40 million in interest, as the lender slashed staff numbers and closed branches around the country.

The firm, which also operates insurance and debt collection services, specialises in car and personal loans of up to $50,000, and draws most of its funding from a securitisation facility with Westpac Banking Corp.

The NZAX listed shares rose 5.9 percent to 5.4 cents, and have climbed 65 percent this year.

BusinessDesk.co.nz

Comments from our readers

No comments yet