MTF Finance has announced its half year 2023 results which shows that profit and market share have reached record levels.
The firm experienced a considerable growth in market share from 11 to 15 per cent during the six month period, while increasing underlying profit after tax by 117 per cent to $6.2 million.
It also saw a notable expansion in its presence within the non-vehicle lending market with the number of customers increasing by 8 per cent.
Year on year growth of 23 per cent in retail receivables from $763 million to $879 million.
Interim dividend was up 77 per cent, reflecting an annualised dividend yield of 6 per cent.
“MTF Finance has experienced a period of growth well above what the market has grown at. While numerous businesses are adopting a conservative approach and scaling back, we continue to have confidence in our distinctive community-based lending model,” says Chris Lamers, CEO of MTF Finance.
”As a result, we have successfully assisted a greater number of New Zealanders, setting us apart in these uncertain times. During these challenging times, our customers rely on us to be there for them, and we are unwavering in our dedication to the communities we serve.
”We remain committed to supporting them through both prosperous and difficult periods, demonstrating our steadfast commitment to their well-being.”
While the economic outlook is uncertain, MTF Finance is confident of continued strong performance in the second half of the financial year.
“We have worked on reducing the cost to run the business, which is now at record lows as a ratio of income,” added Lamers.
”We have increased access to funding and capital and are confident we can maintain this strong growth rate. We have entered the personal loan market, which is showing strong growth, and through partnerships, we have expanded our insurance offer. We have a strong roadmap of new products, partnerships and locations to expand into that we expect to continue to grow despite the economic environment.”
Arrears continue to trend lower than pre-covid levels, now at 0.7 per cent, showing the strong focus on loan quality and ensuring that customer care is prioritised to create great customer outcomes, all in the pursuit to make lending about people again.
