UDC posts higher annual profit

Last updated 11:53 02/12/2013

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UDC Finance has posted a $43 million profit after tax for the year to September 30, up 13 per cent on the back of strong lending growth and tight cost management.

The asset- and vehicle-finance company grew new lending by 7 per cent in the year.

Chief executive Tessa Price said the results reflected gathering growth in the New Zealand economy; "which we're now seeing extend to all major sectors".

Particularly strong growth areas included forestry, up 35 per cent, transport and storage, up 28 per cent, and construction, up 16 per cent.

Car loans were also up 18 per cent, after UDC joined with Suzuki New Zealand to offer Suzuki Finance-branded products through its dealer network.

Revenue rose 9 per cent to $97.7m, while expenses remained flat at $30.9m.

The ANZ Bank subsidiary made a strong start to the new financial year, with a record month for new lending in October.

UDC was one of only three big deposit-taking finance companies to survive the collapse of the sector.

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- Fairfax Media

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