2 Dec 2013

Net profit up 13% at UDC Finance

11:50 am on 2 December 2013

UDC Finance says a resurgent economy and tight control of costs helped it lift annual net profit by 13%.

UDC, which is owned by the ANZ Bank, lifted its profit for the 12 months to September to $43 million from $38 million the previous year.

Net interest income rose 8.6% while other operating income jumped 81%, largely because of a big increase in lending and credit facility fees.

The company's operating expenses fell marginally in the year.

In the September year, lending to the forestry sector by UDC climbed 35%, lending to the transport and storage sector rose 28% and construction lending was up 16%.

Chief executive Tessa Price says the company played to its strengths and streamlined the business to better deliver for customers.

She says the growth has continued into the current year with October being a record month for new loans.

Ms Price says the gathering growth in the New Zealand economy is now extending to all sectors and that when UDC is growing, the economy is growing.

She says rising confidence means firms are increasingly ready to invest in vehicles, plant and equipment.