Geneva posts $7.7m loss
The loss in the six months ended September 30 was $7.7 million, from a loss of $100,000 a year earlier, the company said in its first-half report.
“We are experiencing once in a life time changes to financial markets on both the global stage and within New Zealand,” it said. “It is difficult to know the extent to which the current recession will impact the company’s performance, both in terms of collecting receivables (particularly the “old ledger”) and sourcing of new lending.”
Geneva has divided its loan book in two, with the new ledger comprising people with better credit records and the old made up of lower quality loans. The first half loss includes $9.4 million of additional provisions for the old loan book.
As at September 30, old ledger loans were $43.7 million, or 43% of the total. The company has a moratorium on some $138 million of deposits from 4,000 investors.
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