You are using an older browser version. Please use a supported version for the best MSN experience.

UDC posts record profit as car sales soar

NZN 8/12/2016 Edwin Mitson

ANZ's UDC finance unit has posted a record annual profit, driven by booming car sales and strong growth in forestry, transport and construction.

Net profit rose 3 per cent to $58.5 million in the year to the end of September, though ANZ said revenue was hit by a fall in the interest margin it could achieve, dropping 1 per cent.

No revenue figure was given by ANZ and full accounts have not been published, with the only details available a one-page statement, but a 1 per cent decline from the previous year's $122m suggests revenue was around $120.8m for the year.

The Auckland-based lender has been subject to intense speculation that it will be sold. The chief executive of Heartland Bank, Jeff Greenslade, last month told investors he believe UDC would be an "ideal fit".

Wayne Percival, UDC's chief executive, said the company had looked to help businesses take advantage of the strong economic growth in New Zealand.

"The housing and infrastructure build across New Zealand, along with record new car sales, created robust demand for our asset financing expertise, and drove the good result for our business," he said.

Strong competition among banks for quality lending and deposits had put pressure on margins, he added.

Provisions for bad debts fell 29 per cent to $7.4m.

image beaconimage beaconimage beacon