UDC lifts first-half profit 8% on more car loans, forestry lending

Tessa Price, UDC Finance Chief Executive

Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.

Launch Radio player

UDC Finance, the finance company owned by ANZ Bank New Zealand, lifted first-half profit 8 percent as it grew lending in car loans and forestry.

Net profit rose to $25.7 million in the six months ended March 31 from $23.8 million a year earlier, the Wellington-based lender said in a statement. The finance company grew new lending $89 million, or 16 percent, without providing details of the size of its loan book. Those gains were driven by a 53 percent gain forestry lending and a 70 percent increase in new car lending. The lender shrunk its cost-to-income ratio, a measure of its margins, by 7 percent, it said without being more specific.

"We are now seeing pent up demand for assets being converted into decisions to invest in vehicles, plant and equipment," chief executive Tessa Price said.

According to its 2013 annual report, the lender's loan book was $2.07 billion as at Sept. 30, with $374.3 million in agriculture, forestry and fishing, $387.4 million in transport and storage loans, and $282.4 million in construction lending.

The ANZ-backed finance company is one of the few survivors from the sector collapse through the second half of last decade. Earlier this month, its Auckland-based parent posted a 27 percent gain in first-half cash profit to $887 million.

(BusinessDesk)


This article is tagged with the following keywords. Find out more about MyNBR Tags

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7499 0.0012 0.16%
AUD 0.9615 -0.0003 -0.03%
EUR 0.6798 0.0010 0.15%
GBP 0.4918 0.0007 0.14%
HKD 5.8156 0.0078 0.13%
JPY 89.9750 0.0700 0.08%

Commods

Commodity Price Change Time
Gold Index 1198.1 -2.780 2015-03-05T00:
Oil Brent 61.0 -0.250 2015-03-05T00:
Oil Nymex 52.5 1.050 2015-03-05T00:
Silver Index 16.1 0.000 2015-03-05T00:

Indices

Symbol Open High Last %
NZX 50 5856.8 5892.0 5856.8 0.59%
NASDAQ 4979.9 4993.5 4967.1 0.32%
DAX 11427.6 11532.8 11390.4 1.00%
DJI 18096.9 18160.3 18096.9 0.21%
FTSE 6919.2 6968.6 6919.2 0.61%
HKSE 24235.8 24294.4 24193.0 0.01%
NI225 18814.8 18965.9 18751.8 0.97%