GFNZ boosts annual profit on widening margins, bigger loan book
GFNZ's net profit rose to $3.5 million, or 0.73c per share.
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GFNZ Group [NZAX: GFL] lifted annual profit 61% as the finance company's loan book increased and margins widened on the back of low interest rates.
Previously known as Geneva Finance, GFNZ’s net profit rose to $3.5 million, or 0.73c per share, in the 12 months ended March, from $2.2 million, or 0.48c, a year earlier, the company says.
That gain was principally from GFNZ's Geneva Financial Services, whose loan book rose 26 % to $48.8 million. At the same time, it widened its margins, generating $5.8 million of net interest income, or 63.3 % of total interest income, compared to $3.4 million, or 52.7 % of total interest income, a year earlier.
"This has been a pleasing year for the group and we are highly satisfied with the results, which position us well for the future," managing director David O'Connell says.
"The profit improvement and conservative balance sheet ensures the group is ideally placed for further growth opportunities, both organically or by way of acquisitions."
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. That facility was reviewed in June last year and extended through to July 2017.
The NZAX-listed shares last traded at 5.6c, down 20% so far this year, and valuing GFNZ at $27.6 million.
(BusinessDesk)
Paul McBeth
Mon, 13 Jun 2016
Mon, 13 Jun 2016
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GFNZ boosts annual profit on widening margins, bigger loan book
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