First City optimistic

Press, 2 July 1985, Page 26

First City optimistic

PA Auckland First City Finance, Ltd, intends to make a tax-paid profit of $600,000 in the year to March, 1986, and hopes to double the $347,000 profit reported for the March 31, 1985, year. The prediction was made by the chairman, Mr D. W. Johnson, who told shareholders at the annual meeting that the company had excellent results in May and June, with deposit levels ahead of budget. Lending business had continued at a steady level, with rates now showing a reasonable margin on the funds involved. Mr Johnson predicted lending rates would fall, in line with the drop in deposit rates, but said there would be a lag before they did so. Mr Johnson said the bulk of the company’s $3.15 million portfolio of Government securities had been sold in April on a buy-back agreement. Under that agreement First City will buy back the securities in April, 1986, at the same price at which they were sold.

By then it is expected market yields will have fallen. In the meantime the proceeds have been re-in-vested at a margin which enhances profitability.

Mr R. E. O’Shanassy has been appointed central regional manager for the Hygrade Packaging Company’s case division. Mr O’Shanassy will manage the company’s divisions in Levin and Hawke’s Bay. He was divisional manager of the Hygrade case division in Hastings and before that was marketing manager for New Zealand Glass Manufacturers.