Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

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

 

UDC Finance posts record net profit

Media Release

For release: 8 December 2016

UDC Finance posts record net profit

UDC Finance has posted a record net profit after tax of $58.5 million for the year to 30 September 2016, a 3% increase on the previous financial year.

A key contributor to the result was strong lending growth across a diverse range of industries, improved credit quality and a focus on containing costs.

Improved lending quality and lower provisions were partly offset by a decline in net interest margin, resulting in revenue being down 1% on the previous year.

Wayne Percival, UDC’s CEO, said: “During 2016 UDC helped customers throughout New Zealand - particularly in the motor vehicles, forestry, transport and construction sectors – take advantage of sustained economic growth and strong business opportunities.

“The housing and infrastructure build across New Zealand, along with record new car sales, created robust demand for our asset financing expertise, and drove the good result for our business.

“Strong competition among banks for quality lending and deposits put pressure on margins. However, that is now stabilising and with good lending growth we are well positioned heading into the new financial year.”

Focus on cost control through efficiencies that improve and streamline the customer experience saw total expenses reduce 2% compared to FY15 and cost-to-income reduce to 26.3%.

While cost productivity remained a priority, UDC continued to invest in its on-line proposition through UDC Live in order to meet customers’ needs.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

The quality of customer businesses, coupled with responsible lending, resulted in a 29% reduction in provision expenses (to $7.4 million) and overall credit quality remains high.

“We have the best and most experienced asset finance team in New Zealand, and our focus remains on understanding the needs of our customers and ensure they’re in the best position to take advantage of growth and build long-term resilience and value in their businesses,” Mr Percival said.

--

UDC Finance is a wholly owned subsidiary of ANZ Bank New Zealand Limited, and has a Standard & Poor’s* credit rating of A-.

*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


© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.