UDC Finance Lifts Profit By 31 Per Cent

Media Release

13 December 2012

UDC Finance Lifts Profit By 31 Per Cent

UDC Finance’s net profit after tax rose to $37.9 million for the year ended 30 September 2012, an increase of 31 per cent on the previous financial year. This was driven by a lift in lending activity and an increased focus on cost management.

Tessa Price, UDC’s CEO, said: “These are pleasing results which reflect the hard work and commitment shown by the team throughout the year. UDC continues to go from strength to strength as New Zealand’s leading finance company.

“It has been another year of quality lending growth within our business. Our lending book has grown by around 3.5 per cent to over $2 billion and new lending increased by 7.5 per cent this financial year.

“These results also reflect new signs of confidence in the economy with businesses showing a readiness to invest in vehicles, plant and equipment.

“We continue to concentrate on our core business of financing these requirements as New Zealand companies gear up to take the economy forward. Our focus will remain on understanding the needs of our customers so we are best placed to help them grow.

“Through our investors we are proud to be helping New Zealanders support New Zealand businesses.”

Ms Price said UDC's focus on quality lending and proven strengths in credit assessment and asset management also contributed to the increased profitability and a 15.3 per cent growth in revenue.

These efficiencies in the business, driven by lower costs and provisions have also seen UDC achieve pre-GFC levels of profitability.

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ENDS

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