Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Motor Trade Finances Limited releases 2007 result

From: Motor Trade Finances Limited (MTF)

Mediapak: Metropak


Motor Trade Finances Limited (MTF) releases 2007 result

MTF transacting shareholders earned $48.6m, through their participation in MTF, in the year to 30 September 2007. This includes distributable profit of $36.8m, and an additional $11.8m in fees and payment waiver premium, paid direct. Although this is down on 2006, last year’s figure included provisions of $3.9m, taken to profit in readiness for adoption of International Financial Reporting Standards (IFRS). Highlights include:

• new business increased by 2.4% to $454.7m
• underlying profit distributable to transacting shareholders increased to $36.4m (last year: $35.7m),
• expense, as a percentage of average total assets, was lower at 1.74% (last year: 1.78%)
• return on assets increased to 8.6% (last year: 8.4%)
• average earnings per transacting shareholder increased by 7%, to $70,000
• profit after tax decreased to $38.6m (last year: $40.0m)

Total assets increased by 3.5%, to $602.0m, in line with the sales growth experienced in the last half of the year.

The balance sheet remains sound, with capital, including perpetual preference shares, of $53.9m and a capital percentage of 9.0%.

All credit measures remain well within target, with arrears levels amongst the lowest seen in recent times. MTF lends primarily on motor vehicles, with credit risk diversified by the large number of relatively small loans spread across a large number of borrowers, throughout New Zealand. All loans are managed and guaranteed by the transacting shareholders. MTF monitors the performance of each transacting shareholder and each portfolio of loans on a regular basis and carries out regular reviews of lending policy and process.

Commercial paper, issued through the securitisation programme, continues to be rated A1+/P-1 (extremely strong/superior) by Standard & Poor’s/Moody’s, a reflection of the quality of paper written by transacting shareholders and of our continuing focus on credit quality. Internationally, the knock-on effect from the US sub-prime mortgage collapse has changed the market for commercial paper, at least in the short-term. MTF has always had facilities in place should commercial investors withdraw from the market, and this has enabled MTF to continue to fund new and existing business for the foreseeable future, albeit at the higher margins that have become the new reality. There are indications confidence is returning and investors are now tentatively re-entering the market. At the date of this report 75% of MTF securitisation requirements are funded through euro commercial paper, with the remainder provided by bank funded bills of exchange.

Looking to the future, we expect credit quality to remain strong, not only because of a strong economy but also because we have the systems and people in place to ensure we manage it well.

On the funding side, we expect that interest rates will increase before they fall, largely because of continued inflation pressure, making New Zealand an attractive destination for foreign investors. We cannot be certain how debt markets will behave, with some commentators predicting more shocks to come.

Although it is still early in the new financial year, new business figures are ahead of last year and we are in a strong position to meet whatever the year decides to throw at us.
ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news