ANZ's UDC finance unit increases first half profit 11%

Wednesday 3rd June 2015

UDC Finance, the finance company owned by ANZ Bank New Zealand, lifted first half profit 11 percent as it grew lending for road freight and car loans.

Net profit rose to $28.4 million in the six months ended March 31, from $23.8 million a year earlier, the Auckland based lender said in a statement. Road freight lending increased 15 percent from the year earlier, while car loans grew 13 percent.

"Through our lending to sectors such as road freight we’re helping businesses deliver to strong demand from consumers whose confidence, supported by low interest rates and a high dollar, is also feeding sales of big ticket items such as cars,” chief executive Tessa Price said.

UDC said debenture stock grew by 6 percent to $1.63 billion, while loans and advances increased 7 percent. Profitability was helped by a low cost to income ratio, a measure of its margins, and as it wrote off less loans, with the provision expense falling to $4.9 million in the first half from an $11.7 million expense in the last financial year.

The finance company had $2.35 billion in assets as at Sept. 30 last year, and $2.01 billion of liabilities, according to its annual financial statements.

BusinessDesk.co.nz

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