AGC well ahead

Press, 6 May 1981, Page 29

AGC well ahead

Australian Guarantee Corporation (N.Z.), Ltd., announced a 32.3 per cent leap in tax-paid earnings to $2.3 million for the six months to March 31. The company, which is a wholly-owned subsidiary, of Australian Guarantee Corporation, which in turn is a subsidiary of the Bank of New South Wales, reported prospectus borrowings totalling $183.1 million as at March 31. Gross receivables were $243.0 million, and net receivables rose to $176.1 million. The Australian parent announced a 16.1 per cent increase in tax-paid group operating profit to $A31,950,000 for the March half-year. The result was reached after provision of $32,333,000

for tax and minority interest of $383,000. Net receivables of $2858 million were 16.1 per cent up from the same time the previous year. The interim dividend is a Steady 8.75 per cent payable on June 12, ex May 18. The directors say the increased group profit is mainly because of the improved profit of the commercial division, particularly property finance where “average exposure” increased significantly. They point out that a continuation of the shortage Of funds and the effect of competition for funds on the market will keep pressure on profitability. However, increases in lending rates and increases in exposure, should result in further increases in group profit.