A.A. Finance almost doubles profit
PA Wellington A.A. Finance, Ltd, the lending vehicle for the Automobile Association, earned a net profit of $160,656 in the year to March 31, almost doubling the previous year’s $80,554, to give an earning rate on average shareholders’ funds of 26 per cent. The ratio on paid-up capital was 32 per cent. Net advances increased by more than S2M to $8,318,287 and total assets from $7,437,910 to $9,892,554, or 33 per cent. “A.A. Finance sets its lending rates at lower than general market levels, in order to give A.A. members a more favourable service, and while we pay fully competitive market interest rates on borrowed funds, we can still trade profitably and produce a satisfactory result,” says the chairman (Mr J. A. Connolly) in the annual report. Interest rates are continuing to rise as the Government stock issues, designed to absorb excess liquidity, force the market up. “Although the directors realise the need to keep pace with the market, we also endeavour to maintain stability in rates offered, by keeping the same rates throughout the currency of a prospectus. “We believe that if rates are varied frequently investors tend to become confused while stable interest rates, we feel, engender the confidence investors require to place their funds in the
longer investment periods. “The ability to repay investments as they fall due, is of vital importance and the directors maintain constant supervision to ensure that the company will have no difficulty meeting its obligations,” he says. Looking to the year ahead, Mr Connolly says although there appears to be little prospect of 'any major improvement in the economy
the directors have again adopted a budget providing for continuing growth. The company, which has completed four full years of operation, has an issued and paid-up capital of $500,000 with shareholders’ funds totalling $684,275 ($578,469 in 1978). The shares are not listed.
There are about 600,000 A.A. members throughout New Zealand.
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/CHP19790712.2.139
Bibliographic details
Press, 12 July 1979, Page 18
Word Count
323A.A. Finance almost doubles profit Press, 12 July 1979, Page 18
Using This Item
Stuff Ltd is the copyright owner for the Press. You can reproduce in-copyright material from this newspaper for non-commercial use under a Creative Commons BY-NC-SA 3.0 New Zealand licence. This newspaper is not available for commercial use without the consent of Stuff Ltd. For advice on reproduction of out-of-copyright material from this newspaper, please refer to the Copyright guide.
Copyright in all Footrot Flats cartoons is owned by Diogenes Designs Ltd. The National Library has been granted permission to digitise these cartoons and make them available online as part of this digitised version of the Press. You can search, browse, and print Footrot Flats cartoons for research and personal study only. Permission must be obtained from Diogenes Designs Ltd for any other use.
Acknowledgements
This newspaper was digitised in partnership with Christchurch City Libraries.
Log in