NZ Finance holdings profit up 77%

By NZPA

Monday 23rd April 2007

Mortgage broking and finance company New Zealand Finance Holdings Ltd (NZF) lifted net profit after tax 76.9% to $6.73 million for the year to the end of March.

During the reporting period NZF made a one-off profit of $3.4 million when it sold down its shareholding in Mike Pero Mortgages, in which it retained 50%.

That stake was in a joint venture, with Liberty Financial, formed to carry out a full takeover of Mike Pero.

NZF said revenue from ordinary activities was up 78.3% to $43.15 million, with a fully imputed final dividend of 1 cent per share to be paid, giving a total of 1.75 cents for the year.

Chairman Richard Waddel said that during the year NZF raised $20 million in a capital notes issue, increased its funding from Westpac to $150 million, increased its loan book from $70 million to $96 million, and expanded its home loan book from $26 million to $76 million.

NZF was one of only a few non-bank financial institutions that could still boast it had no bad debt write-offs, he said.

Managing director John Callaghan said that as a result of the rapidly evolving relationship between the banking and finance industries, NZF was investing heavily in technology systems and staff.

Rationalisation in the finance sector would probably result in bigger companies getting stronger.

NZF's 51% investment in Finance Direct this month allowed NZF to diversify its product base and range, he said.

Finance Direct had developed flexible and innovative ways of borrowing for people wanting to buy property, consumer goods, or debt consolidation -- something it had not offered until now.

"There is a significant change occurring in the way people want to manage their money. Our continued investment and innovation will ensure we are always in the position to take advantage of these opportunities," Callaghan said.

NZF shares were unchanged at $1.42 at noon today, having ranged between $1.66 and 90c in the past year.

Comments from our readers

No comments yet