A 53% increase in forestry lending has seen UDC Finance record a net profit after tax of $25.7 million for the six months to 31 March 2014.
This was an net profit after tax increase of 8% on the corresponding half last year. The result was also driven by continued lending growth, a decreased cost-to-income ratio and improved asset quality.
Against the same period last year, UDC has grown new lending by $89 million, or 16%, and reduced its cost-to-income ratio by 7%.
“UDC has continued to play to its strengths as New Zealand’s leading finance company, building further on the growth and momentum we’ve achieved, with an increase in lending across our core segments,” says UDC chief executive officer Tessa Price.
“As economic recovery has gained pace in New Zealand and globally, businesses are now operating from a solid base of confidence. They have more work, are growing, and we are now seeing pent up demand for assets being converted into decisions to invest in plant and equipment.”
UDC achieved particularly strong lending growth in forestry with new lending up 53% on the same period last year; and new car lending up by more than 70%.
“As we move forward, our focus remains on our core business of financing companies’ requirements as they invest in assets to take their business forward. We’re reinvesting in technology and training to make it easier for customers to do business with us,” says Price.
“We’ll continue to work hard to understand the needs of our customers, to help them grow and build long-term resilience into their businesses.”
