UDC Finance lifts profit by 11 per cent
25 November 2015
Media Release
UDC Finance lifts profit by 11 per cent
UDC Finance has increased net profit after tax to $57.1 million for the year to 30 September 2015, an 11% rise on the previous financial year.
Solid lending growth, improved credit quality and cost efficiency were key contributors to this record result.
UDC has lifted revenue by 6% to $122 million and seen its cost-to-income ratio fall to 26.5%, from 27.3% last year. Debenture investments are up 11% on last year, to $1.74 billion.
Wayne Percival, UDC’s CEO, said: “UDC has delivered another very good result, which reflects the strength of our team and their commitment to supporting customers across New Zealand.
“We have grown our loan portfolio and are developing further long-term partnerships in our key industries. Motor vehicle lending was a key contributor, with year-on-year growth of 14%, as well as growth in Road Transport and Construction.
“The quality of our customer businesses, coupled with smart and responsible lending, has driven an 11% reduction in provision expenses. Impaired loans are down 3% year-on-year.”
Mr Percival said UDC continued to deliver cost efficiencies through investments in technology that improve and streamline the customer experience, including taking advantage of capabilities available through the ANZ Group. The company has recently launched online access for its investment customers making it easier to manage their funds with UDC.
“UDC is underpinned by the best people in the industry who strive to deliver to customer needs and maintain UDC as the market leader in asset finance. We seek to do this by being a long-term partner that understands our customers’ businesses and can provide the finance, service and added value they need to reach their goals.
“We remain strong in regional centres throughout New Zealand, as well as focussing on opportunities in the major centres, particularly Auckland and Christchurch,” Mr Percival said.
“By continuing to grow both our lending and investments we’re helping New Zealand succeed – by financing equipment and vehicles for growing businesses, and providing Kiwis with opportunities to invest in New Zealand’s success.”
For media enquiries contact:
Pete Barnao
Communications Manager, Media
Tel: +64-9-252 6623 or +64-27-277 3139
Email: Pete.Barnao@anz.com
UDC Finance is a wholly owned subsidiary of ANZ Bank New Zealand Limited, and has a Standard & Poor’s* credit rating of AA-, in line with the major banks.
*Credit ratings issued by Standard & Poor’s Ratings Services are solely statements of opinion and not statements of fact or recommendation to purchase, hold or sell any securities or make any other investments decisions. Latest ratings can be found at www.standardandpoors.com