UDC Finance posts higher profit
One of the few remaining major finance companies has posted an increased after-tax profit of $37.9 million for the year to September 30.
UDC Finance, a wholly owned subsidiary of ANZ Bank, lifted its profit by 31 per cent and its revenue by 15 per cent from last year .
The improved result returned the company to levels of profitability seen before the global financial crisis.
The company said a lift in lending activity and an increased focus on cost management had driven the result.
"Our lending book has grown by around 3.5 per cent to over $2 billion and new lending increased by 7.5 per cent this financial year," said UDC chief executive Tessa Price.
She said the "pleasing results" reflected new signs of confidence in the economy, with businesses more prepared to invest in vehicles, plant and equipment.
"We continue to concentrate on our core business of financing these requirements as New Zealand companies gear up to take the economy forward."
Unlike much of the finance company sector which imploded after the financial crisis, UDC does not deal in speculative property investments.
It was one three big finance companies to survive the crash, along with would-be bank Heartland and Fisher & Paykel Finance.