Allied Nationwide saw NZ$100m in maturing payments
28th Oct 08, 3:42pm
Allied Nationwide has reported that it paid out over NZ$100 million in maturing deposits as a consequence of the global financial crisis. Despite this, it reported that the finance company finished the year in good shape due to its acquisition of Speirs Finance. In the Chairman's address to the Allied Farmers AGM, John Loughlin said that the company's ability to match debenture maturities with loan repayments, and a program of remaining liquid saw Allied Nationwide finish the year in good shape. "The purchase of Speirs Finance means the finance company has NZ$400 million of assets and has access to a NZ$250 million securitisation program, backed by BNZ up to NZ$150 million," Loughlin said of Allied Nationwide. "We are positioned with a business that has moderate scale, a diversified lending book, a diversified funding book, a quality management team and an ability to draw from the capabilities of four businesses," he said. Also announced at the AGM was the resignation of Group Chief Executive David Bale, after two years in the job. Allied Nationwide is looking for a successor. "During David's tenure we have seen the closure of the Allied Pine sawmill, the purchase of Nationwide Finance, the sale of the Wool division, the development of the MyLiveStock system, the South Island expansion, and the purchase of Speirs Finance," Loughlin said. "Throughout the current uncertainties it is important to remember that the recession will end and there will be a need for innovative, medium risk lending to enable economic growth, and also a need for depositors to have access to higher yielding investments. Thus there will be a place for Finance companies in tomorrow's economy."