However, the company had not been immune from the United States subprime mortgage crisis.
Interest margins had decreased and expenses had increased because of matters over which Dunedin-based MTF had very little control, he said.
The company distributed $25 million to its dealer shareholders in the six months ended March 31.
Total assets increased 6.5% to $620.3 million. Capital, including perpetual preference shares, at balance date was $51.8 million, to give capital percentage of 7.9%.
MTF had changed the way it presented its financial report to comply with international reporting standards. Profit now appeared in the income statement rather than the statement of changes in equity, Mr Bradshaw said.
The changes, and others required under the reporting standards, had made no difference to underlying profitability or cash flow.
Interest margins had come under pressure from rising interest rates, driven largely by a Reserve Bank focused on the housing market as the only source of inflation. Cost of funds had risen by 0.68%.
Asked about arrears, Mr Bradshaw said MTF loan arrears were well under control.
"As we have said before, lending on motor vehicles is not a problem, provided you lend to the right people and manage it properly. All arrears are in the bands we expect but the pressure on arrears will come.
"We are in daily contact with dealers who run over to keep them under control. Dealers are working well with us, which makes live easier for both parties."
In the period, MTF made full provision for losses from one shareholder of $400,000 who failed to meet obligations at balance date.
MTF's main focus remained on motor vehicles, with less than 4% of its loan book in business equipment and marine loans, he said.
Given a slowing economy, MTF would not expand further outside vehicle lending until it was confident the economic outlook and the company's experience provided a solid base for expansion.
At balance date, MTF had 58,000 loans outstanding with an average balance of $10,000.
The loans were spread throughout New Zealand, primarily in provincial areas where dealers were more likely to know the borrower and be able to react if the loan did not perform, Mr Bradshaw said.
"There is no doubt the economy is under pressure and we do not expect to see any relief in the next 12 months. Although new business is ahead of last year, we anticipate that this will soften over the winter.
"It is inevitable that we will see some pressure on arrears and we are confident the controls we have always had in place will ensure that our customers and our transacting shareholders will manage through any downturn."
Funding was expected to remain difficult but MTF had the full support of its bankers, Mr Bradshaw said.
