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


UDC profit surges as bad loans halve

UDC profit surges 570% as bad loans halve

By Paul McBeth

Dec. 20 (BusinessDesk) – UDC Finance Ltd., the non-bank lender owned by ANZ National Bank, posted a 570% jump in full-year profit, reflecting a reduction in provisioning for bad loans.

The Auckland-based firm had a net profit of $18.2 million in the year ended Sept. 30, compared to $2.7 million a year earlier. Its provision for bad debts fell to $17.3 million from $35.5 million.

“UDC will continue to stick to its core business of plant, equipment and motor vehicle finance to help New Zealand grow,” chief executive Chris Cowell said in a statement. “We will continue to support our customers and as the economy starts to grow and businesses begin to invest again we are ready to provide the finance they need.”

ANZ National, UDC’s parent, reported a similar surge in net profit for the year after it cut its provisioning for bad debt by half, though doubled its past-due loans.

UDC grew its loan book 7.6% to $1.97 billion over the period, though borrowings increased to $1.83 billion as at Sept. 30 from $1.58 billion a year earlier. Since then, the finance company repaid a further $150 million of its facility with ANZ.

Interest income dropped 11% to $175.9 million, with just $1.7 million of that coming from ANZ. Interest payments sank 24% to $98.6 million, with fees paid to the parent rising to $29.9 million from $19 million a year ago.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Retail: International Websites To Pay GST

New rules would be aimed at imported goods valued at or below $1,000. Customs would retain responsibility for collecting GST on imported parcels valued more than $1,000. More>>


High-Level Advice: PM’s Business Advisory Council Membership Announced

The Prime Minister’s Business Advisory Council brings together a mix of experts, six women and seven men with small to large business experience, from across New Zealand, to provide advice. More>>


Improving: Report Shows New Zealand Air Quality 'Good'

Our air 2018, produced by the Ministry for the Environment and Stats NZ, shows that while some previously known issues persist, progress has been made and levels of some pollutants are declining. More>>


Greenpeace: Govt Extends OMV Exploration Permit

The Government has just granted oil giant OMV a two-year extension to drill in the Great South Basin, despite issuing a ban on new oil and gas exploration permits in April. More>>


Collective Bargaining For Contractors: Working Group's Model For Screen Sector

A recommended model to allow collective bargaining for contractors in the screen sector has today been unveiled by the Government-convened Film Industry Working Group. More>>


Kauri Dieback: DOC Closing Tracks To Protect Trees

The Department of Conservation will close 21 tracks across kauri land to help prevent the spread of kauri dieback. An additional 10 tracks will also be partially closed and the open sections upgraded... More>>