Asset Finance, which withdrew from the Crown Retail Deposit Guarantee Scheme last November, has seen its fourtunes bounce back to the tune of NZ$1 million enabling the Whakatane based consumer and small business lender to record an annual pre-tax profit.
The company said its pre-tax profit for the year to March 31 was NZ$659,408 compared to a loss of NZ$367,299 in the year to March 2009. Asset Finance said the 2009 loss stemmed from loan write-offs, impairment provisions and reduced loan income as it ran its loan book down to match reduced depositor funding.
"As economic conditions have improved during the 2010 financial year Asset Finance has seen gradual growth in both its depositor funding and its lending book leading to increased loan income while, at the same time, the company has achieved a significant reduction in loan write offs and impairment provisions," Asset Finance said.
Major restructuring had also lifted profitablity through a significant reduction in overhead costs.
Founded by Clive George and headquartered in Whakatane, Asset Finance also has operations in Auckland, Hamilton, Rotorua, Tauranga, Tokoroa, Hawera, New Plymouth, Palmerston North, Wanganui, Masterton and Wellington.
"In November 2009 Asset Finance announced that it was withdrawing from the Crown (Retail) Deposit Guarantee Scheme and 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."
Asset Finance has no loan exposure to the property development sector.