Dunedin's NZX-listed finance company has announced a 61% increase in its profit after tax for the year ended September 30.
MTF Finance released its full-year result to the market yesterday, with the company posting an $8million profit after tax.
The result reflected the proactive measures by MTF last year to address uncertainty and forecast increase in credit risk, the company’s announcement said.
"Whilst lingering economic uncertainty remains, the strong sales performance, record low unemployment and our Covid-19 loan rehabilitation programme assisting affected customers means that MTF Finance is able to release some of last year’s Covid-19 credit risk allowance," the company said.
MTF’s underlying profit after tax, which removed the volatility of unrealised fair value movements including the credit risk allowance, dropped slightly to $7.45million, down from $7.5million in 2020.
Commission paid to shareholder originators increased 6.2% to a record high of $45.4million.
The company’s sales increased by $58.4million, or 12%, on the back of what it said was a strong recovery following the initial shock of Covid-19 in New Zealand and subsequent lockdowns.
MTF would be reinvesting in the business through a substantial upgrade to its IT systems and infrastructure over the next two to three years.
The company’s board had approved a final dividend of 2.83 cents a share for payment on November 30.
