The Dunedin-based company yesterday reported a profit before commission and fair value movements of $22 million for the six months ended March, up 6% on the previous corresponding period. Commission paid to its motor vehicle dealer shareholders also improved 6% to $16.6 million.
Unrealised loss on fair value of financial instruments was $800,000, to provide a reported profit of $3.2 million compared with $3 million in the pcp.
Chief executive officer Glen Todd said sales remained steady at $202.5 million.
''MTF's traditional market of used car finance has come under pressure with the high New Zealand dollar making new cars an attainable proposition for consumers and the car lending market generally remains very competitive.''
That was reflected in the market share for the period, measured by the Personal Property Securities Register, which had reduced marginally to 12.2%, he said.
Operating expenses, excluding bad debts, as a percentage of assets under administration, improved to 2.8% in the first half of the financial year.
''We continue to focus on strong cost management while investing in areas that will ensure the business' future success.''
Securitised borrowings increased $18.7 million to $452.6 million, with securitisation facilities totalling $487.2 million and $34.6 million undrawn at balance date. MTF had committed bank facilities of $45 million with $20 million drawn down at March 31.
The funding position remained sound, with sufficient facilities to fund forecast growth, Mr Todd said.
The ''Warehouse'' facility had an expiry date of August 30, 2015 and the rollover process was under way.
The facility had a strong track record, demonstrated by two AAA medium-term note issues in the past three years and keen demand expressed for future issues from satisfied investors.
MTF's internal development focus continued to be driven by impending changes to updated consumer laws and regulations.
The Responsible Lending Code was released on March 17, with the code and lender responsibility principles being hurried into force on June 6, Mr Todd said.
The code set out guidance on everything from advertising of credit through to repossession and continued the theme of pushing the responsibility for enforcement back on to lenders.
The company's digital loan origination platform would focus on creating simple and effective ways for the MTF network to meet its responsibilities.
MTF had filed for leave to appeal to the Supreme Court the Court of Appeal decision to dismiss the appeal by Sportzone Motorcycles and MTF.
Mr Todd said the case was significant and had implications for the lending industry as the principles would be incorporated with the Responsible Lending Code.
''MTF is disappointed with the decision and is concerned the court failed to address some key aspects of the case.''
