Asset financier UDC (owned by ANZ) has announced strong profits, off the back of rising vehicle lending and growth in road transport and construction.
Net profit after tax increased to $57.1 million for the year to 30 September 2015, an 11% rise on the previous financial year.
UDC has lifted revenue by 6% to $122 million and seen its cost-to-income ratio fall to 26.5%, from 27.3% last year. Debenture investments are up 11% over last year, to $1.74 billion.
The chief executive of UDC, Wayne Percival says the company has seen strong profits from motor vehicle lending.
“We have grown our loan portfolio and are developing further long-term partnerships in our key industries,” says Percival. “Motor vehicle lending was a key contributor, with year-on-year growth of 14%, as well as growth in Road Transport and Construction.
“The quality of our customer businesses, coupled with smart and responsible lending, has driven an 11% reduction in provision expenses. Impaired loans are down 3% year-on-year.”
Percival says UDC continued to deliver cost efficiencies through investments in technology that improve and streamline the customer experience, including taking advantage of capabilities available through the ANZ Group.
The company has recently launched online access for its investment customers making it easier to manage their funds with UDC.
“UDC has the best people in the industry who strive to deliver to customer needs and maintain UDC as the market leader in asset finance,” says Percival.
“We seek to do this by being a long-term partner that understands our customers’ businesses and can provide the finance, service and added value they need to reach their goals.
“We remain strong in regional centres throughout New Zealand, as well as focussing on opportunities in the major centres, particularly Auckland and Christchurch,” says Percival.
