B.N.Z. Finance Co. doubles profit

Press, 8 November 1978, Page 22

B.N.Z. Finance Co. doubles profit

BNZ Finance Company,! Ltd, has achieved a group audited net profit of ,$411,000 for the six months to September 30. This result is an increase of 95 per cent over the $211,000 for the corresponding period last year but then only a three months contribution from First New Zealand International Lid, was included. The latest profit was after tax provision of $304,000 ($148,000) minority interests $3OOO ($15,000) capita! profits $25,000 (nil). A new genera! pre-tax provision has been made for financing losses of $90,000

lover and above that required to write-off accounts which are considered irrecoverable. The directors think such a provision. which is in accordance with the generally accepted industrx practice. is prudent given the inc reased levels of activity No write offs have yet been (Considered necessary. During t ie si - months the group experienced continued ' support from investors, and a demand for its expanded services, particularly in the lin n ey-market where trading conditions were buoyant. Measures have been taken in the money-market subsi-i 1 diaries to hedge against

interest rate changes which max occur. i<e directors are owfident that the group "■ ' achieve a satisfactory profit for the yea: to March 31 The directors base declared an increased inter im ordinary dividend of 6.0 c a share (5.0 c out of lax paid profit to be payable on December 5, ex dividend November 17. The new shares issued the recent one-for-four share issue will not rank for this interim dividend In the absence of any unforscen events the dirccors expect that the final divi dend will be maintained a: no less than 7.5 c a share.