tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Tuesday, July 16th, 7:46PM

Investments

rss
Latest Headlines

F&P Finance doing better than expected

Fisher & Paykel Finance managed to boost its revenue over the past year and avoid the trouble seen by some of its contemporaries by staying out of property development and sticking to consumer credit.

Tuesday, August 18th 2009, 10:05PM

by Paul McBeth

Chairman Gary Paykel told shareholders at the annual meeting the finance unit "stuck to its knitting" by concentrating almost exclusively on point-of-sale consumer credit, and had managed to lift its operating revenue as interest rates came down in a tight credit environment.

Still, the credit crunch didn't leave the finance company unscathed, with F&P Finance needing to write down more bad debt and boost its level of provisioning against rising levels of delinquencies.

The unit "operated in a niche market in which it has sound industry knowledge, an established track record, and unique skills and competencies," Paykel said.

Chief executive John Bongard said the expiry of the government's retail guarantee deposit "will likely have an impact on the level of funding" and that there were still uncertainties as to whether it will end in October next year, or be extended under new terms.

"We shall position our retail investment funding to maximise this opportunity once we are aware of how the current scheme is changed," he said.

The Reserve Bank's soon-to-be-announced requirements for non-bank deposit takers will force the unit to boost its capital, acquire a credit rating, appoint independent directors and meet new reporting requirements. Still, Bongard said the finance company is well-placed to meet these extra burdens.

F&P Finance recently introduced new fraud detection software to help reduce bad debts, but still expects ongoing defaults while the economy remains in a downturn, he said.

 

Paul is a staff writer for Good Returns based in Wellington.

Tags: finance companies

« General Finance improves quality of its loan bookWestpac warns of waning rates »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
Today's Best Bank Rates
Rabobank 5.25  
Based on a $50,000 deposit
More Rates »
News Bites
Latest Comments
Subscribe Now

Deposit Rates newsletter

Previous News

MORE NEWS»

Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com