Sharechat Logo

UDC turns in a solid first half for ANZ

Friday 28th June 2019

Text too small?

Specialist commercial lender UDC Finance increased first-half net profit 6 percent but sees slower growth in lending in the period ahead as the economy cools.

Net profit climbed to $34.7 million for the six months to March 31, from $32.7 million a year earlier. Total revenue for the period lifted 11 percent to $73.4 million and total lending stood at $3.3 billion at balance date, from just over $3 billion a year earlier.

"Continued consumer and business investment in motor vehicles, plant and machinery" drove that growth "during a period of more caution in the New Zealand economy," chief executive Wayne Percival said.

“Businesses are approaching investment in new equipment and vehicles with more consideration. The prospects for many of the key industries we focus on, such as forestry, road transport and the construction sector remain positive."

Inquiry levels at last month's National Fieldays also reflected "a sound outlook for the broader primary sector,” Percival said in a statement.

UDC said provision expenses for the period totaled $7 million and there were "no individually significant write-offs."

Net cash inflows at $188.0 million were considerably down on the comparable period, which showed net positive cashflow of $232.0 million.

UDC, previously earmarked for sale by ANZ, earlier this year stopped taking new investments and said it would repay its secured debentures as part of a review of its funding sources. 

In notes to its half-year accounts, UDC says it is winding up the debenture programme and expects to repay "all existing secured investments in or up to late 2019."

ANZ announced the sale of UDC in January 2017 as part of a strategic effort to simplify the business and focus on the group's core banking activities. But the $660 million sale to China's HNA Group was rejected by the Overseas Investment Office later that year and ANZ's alternative plan for an IPO were also dropped.

 

(BusinessDesk) 

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Gold Report 16th July 2019
NZ dollar rises after CPI meets expectations; US dollar weakens
Yili's Westland takeover gets OIO approval
Govt eyes 2025 for farm-level emissions pricing
Govt won't "die in a ditch" for 100% renewable target
NZ 2Q CPI +0.6% on quarter, +1.7% on year
16th July 2019 Morning Report
Suspect company faces liquidation after director dies
NZ dollar holds gains; focus on domestic inflation data
MARKET CLOSE: NZ shares slip as fears over slowing Chinese growth weigh; AMP slumps

IRG See IRG research reports