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: Friday, March 29th, 10:40AM

Investments

rss
Latest Headlines

Asset Finance turns profitable ahead of govt guarantee expiry

Whakatane-based lender Asset Finance turned profitable in the year through March as it prepares for life after the government's deposit guarantee in just over two months.

Thursday, July 15th 2010, 8:34PM

by Paul McBeth

Asset posted a pre-tax profit of $659,000 in the year ended March 31, compared to a pre-tax loss of $367,000 a year earlier, and now has to contend with getting through the end of the government's guarantee. Last year, the firm flagged it would not seek entry into the government's extended scheme, saying the price was too prohibitive and limited its opportunities to source funding.

"Despite the fact that it is now not able to offer a crown guarantee, the company has continued to receive deposit funds at a level comfortably sufficient to sustain current and projected lending growth," the company said in a statement.

The end of the government's cover has been a problem for most non-bank deposit takers, and has been cited by Standard & Poor's as a major liquidity threat to the sector.  As at September 30, Asset's total loan book exceeded its deposits by more than $6 million, though much of that was the period up to the end of March. In the period covering the October 12, when the guarantee expires, Asset projected a shortfall of $1.2 million from its incoming loans to cover its maturities.

The company said slow growth in its depositor funding and lending loan book underpinned its increased revenue, alongside a "significant reduction" in loan write-offs and provisioning for impaired loans.

 

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

« Bublitz lashes out over Mutual Finance receivershipMarac merger with building societies could go ahead this year »

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