Finance company profits rise

UDC Finance has recorded a net profit after tax of $25.7 million for the six months to March 31, an increase of 8% on the corresponding half last year.

The result was 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%.

“As economic recovery has gained pace in New Zealand and globally, businesses are now operating from a solid base of confidence," UDC chief executive Tessa Price says. UDC achieved particularly strong lending growth in forestry (new lending up 53% on the same period last year); and car loans, with new car lending up by over 70%.