Road transport and construction lending helped UDC Finance post record net profit after tax of $69.7 million for the financial year to September 30.
This is up 7% year-on-year with total revenue up 10% to $150.3m and total lending up 5.5% to $3.4 billion.
This was driven by commercial lending which grew by $100m (8%) and motor vehicle lending which increased $91m (6%).
“The New Zealand economy remains fundamentally in good shape, and despite a slower automotive sector as well as reported lower business confidence, UDC has had a positive result,” UDC chief executive Wayne Percival says.
“UDC has continued to focus on our core business of supporting the industries that form the backbone of the country.
“While businesses are approaching investment in new vehicles and equipment with more consideration, the prospects in key industries such as road transport and construction remain positive.”
“In the coming year UDC will continue to focus on the high-demand road transport and construction sectors, particularly in the Auckland market.
“The year ahead will also see some big changes for the finance sector with a number of legislative changes, including to the Credit Contracts and Consumer Finance Act and the increased capital requirements for banks.
“While these changes may create some challenges, they also create opportunities in the market and put a strong focus on ensuring we continue to deliver good customer outcomes,” Percival says.
