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New loans of $297 million for the six-month period to March 31 constitute the second-best figure in MTF Finance’s more than 50-year history.
Yesterday, the Dunedin-based company released its results for the first half of the 2022 financial year, saying the growth in sales was pleasing as it came at a time when credit demand was contracting.
The company’s market share had had positive gains in the first half of the year since the Credit Contracts and Consumer Finance Act came into force, as other companies had struggled to a greater degree to implement timely compliance changes, it said in a statement.
The first half of the year saw the pilot and/or launch of new products with the aim of providing franchises with additional unsecured product and rejuvenating the dealer market.
Coupled with the start of core technology investment and the build of a new personal loan product, operational spend had increased as previously signalled.
That affected profit after tax, which decreased slightly by 2.5% from the same period last year, to $4.3 million.
That short-term effect had been planned for as part of the longer-term transformation of the business which the board had begun last year, MTF said.
Underlying profit after tax decreased by 28% to $2.87 million, in line with expectations.
Total amounts paid to shareholder originators, including commission, fees and payment waiver, decreased 3.9% to $34.7 million.
Commission paid to shareholder originators decreased 1.1% to $22.2 million.
Expenses increased 25.2%, primarily due to factors aligning to the business’ strategy and reinvestment in itself for growth.
The year-on-year increase was inflated due to the business having taken measures to reduce spending in prior periods to get through the initial shock Covid-19 sent through the economy, the pre-pandemic increase representing 12.7%.
"The pandemic did not strain our business in the manner originally provided for and timing is right for us to progress our strategic intent, while remaining cognisant of our shareholder originators need for cashflow certainty," the company said.