Vehicle credit drives UDC profit
By Jonathan Underhill
UDC Finance had an 11 percent gain in full-year profit that the finance company owned by ANZ Bank New Zealand attributed to lending growth, including stronger motor vehicle credit.
Profit rose to $57.1 million in the 12 months ended September 30, from $43M a year earlier, the Auckland-based lender said in a statement. Revenue rose 6 percent to $122M.
The finance company hasn't released its full financial statements for the latest year.
In the one-page statement it said debenture investments rose 11 percent to $1.74 billion and cost-to-income ratio fell to 26.5 percent from 27.3 percent. Motor vehicle lending rose 14 percent, and it had growth in lending to the road transport and construction sectors, it said.
Its provision expense fell 11 percent and impaired loans fell 3 percent.
UDC was reducing costs by spending on technology and was taking advantage of "capabilities available through the ANZ Group," chief executive Wayne Percival said.