Major automotive lender Heartland Bank’s profits are up 14% to $29.1 million for the half year ending December.
The company’s motor vehicle loans – through its subsidiary Marac Finance – rose by $27.1 million.
That’s a 4% increase, taking the total to $794.5 million.
Overall its loan book grew 7.1 percent to $3.33 billion.
Higher levels of early repayments for motor vehicle loans also helped push its net interest margin down to 4.44%, compared with 4.52% in June.
However, there were also slightly higher write-offs in the motor vehicle loan book, which sits at 0.7%.
In its report to the NZX, the company remains positive about the future of its motor vehicle lending business.
“Heartland remains optimistic about continued growth in the motor vehicle loan book with its comparatively lower cost of funds continuing to provide an advantage over non-bank competitors in the motor vehicle finance market.”
The directors of Heartland have resolved to pay an interim dividend of 3.5 cents per share.
