BNZ Finance profit up 70 per cent

Press, 19 April 1986, Page 21

BNZ Finance profit up 70 per cent

PA Wellington Significant structural changes in the economy would ultimately impact on all sectors of business activity, BNZ Finance, Ltd, said, announcing a 70 per cent lift in final profit. The company’s profit for the year ended March 31, was $14,063,000 ($8,234,000). Gross income leapt to $191,585,000 ($76,877,000) while tax doubled to $12,818,000 ($6,325,000).

The directors recommended a final dividend of 3.75 cents a share (3.75) payable on all shares (including those alloted in the one-for-four bonus and one-for-five bonus issues) on June 3. Books close May 22. The chairman, Sir George Chapman, said that while the effect on BNZ Finance’s customers would be difficult to assess, they could face more difficult trading conditions as the economy slowed. The company’s total assets almost doubled during the year, from $545.6M to SI.IB. While all bad debts at March 31 had been writ-

ten off, increasing the level of provision for financing losses to S7M ($4.3M) was considered prudent by directors.

The board was conscious of the need to maintain high liquidity, particularly in view of the level of short-term deposits held by the company.

Special attention was applied in achieving an appropriate matching of the maturities of the assets and the liabilities of the company. As well as the substantial lines of credit available, BNZ Finance liquidity reserves were held in short-term deposits, and a substantial portfolio of negotiable securities. Total assets of $1077M included short-term cash deposits of SII3M and a commercial bill and transferable certificate of deposit portfolio with a market value of SSO2M. The company was also holding New Zealand Government securities with a market value of SI47M. Sir George Chapman said BNZ Finance was justified in viewing the future with confidence.