Geneva Finance lifts annual profit 45% on increased lending

Friday 05 May 2017 09:54 AM

Geneva Finance lifts annual profit 45% on increased lending, rising premiums

By Rebecca Howard

May 5 (BusinessDesk) - Geneva Finance lifted its full-year profit by 45 percent on increased lending and higher premium income from its insurance business.

The Auckland-based company, which provides finance and financial services to the consumer and small-to-medium business markets, said net profit rose to $5.1 million in the 12 months ended March 31, with revenue from ordinary activities up 22 percent. The company also said it will distribute a 2 cent per share dividend, up 33 percent on its maiden special dividend paid in August last year.

"The profit growth was primarily attributable to the growth in interest income from the receivables ledger, the maintenance of interest yields, control of asset quality and the growth in revenues of our insurance operations where net premium income was up 60 percent on March 2016," said managing director David O'Connell.

Geneva Finance specialises in car loans and personal loans up to $65,000 plus fees and insurance, according to its website.

O'Connell also said the company's Quest insurance operation entered a deal after the March balance date with Janssen Insurance to underwrite all of Janssen's motor vehicle-related product sales throughout New Zealand. The deal is expected to more than double Quest's gross written premium in the March 2018 year, he said.

The company's solid net profit coupled with its conservative debt ratios reinforces that the group is well positioned for an acquisition, O'Connell said. However, while it has looked at a number of options they have not met its acquisition criteria, he said.

The stock, which is listed on the NZAX, last traded at 50 cents.

(BusinessDesk)

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