Dunedin-based Motor Trade Finance has almost doubled its after-tax profit for the year.
For its full-year trading to September, the new and used car financier booked $8.2 million profit, compared with $4.6 million a year ago.
Profit before commission payments to dealers was up 13%, to $39.3 million, from maintaining strong interest margins, asset growth and gains from funding efficiencies. MTF managing director Angus Bradshaw said growth in finance receivables was funded through securitised borrowings, which increased by $32 million to $350.1 million.
Capital, as a percentage of total assets, remained steady at 17.5%, or $77.1 million, and was sufficient to underpin projected growth over the near term.
''We expect demand for new and used vehicles to continue to improve, as domestic economic and labour market conditions improve,'' Mr Bradshaw said in a statement. Business and consumer confidence was continuing its slow recovery, but had broadened beyond the Canterbury region and would drive an increased appetite for credit, he said.
Administration expenses increased 27%, including $1 million for legal fees from defending High Court proceedings brought by the Commerce Commission, while MTF's written-off bad debts were down, from $1.4 million a year ago to $300,000.
Projects completed during the year included development of a new web-based origination system, and launch of smartphone and tablet applications for customers.
