BNZ Fin lift to $9M

Press, 14 October 1986, Page 31

BNZ Fin lift to $9M

PA Wellington BNZ Finance, Ltd, has announced a 66.1 per cent lift in tax-paid profit to $9,272,000 ($5,581,000 the previous corresponding period) for the six months ended September 30.

Gross income was $102.29 million ($80.30 million). The directors declared a 3.125 c a share dividend, payable on November 11. Tax of $8,235,000 ($4,396,000) had been provided for, the chairman, Sir George Chapman, said in a statement.

Amounts owed to the company had been reviewed, and all those considered doubtful were written off.

At September 30 the leftover amount of the provision for financing losses stood at $7 million compared with $4.8 million at September 30, 1985.

“Whilst this is a high level of provision by industry standards, the directors consider this to be a prudent level of provision in view of the rapid changes taking place in the New Zealand economy,” Sir George said.

He said that term receivables grew strongly during the half year with weak demand from the rural sector being more than offset by strong de-

mand from those other sectors of the economy in which BNZ Finance is more heavily involved.

During September, 1986, BNZ Finance disbursed loans totalling $32 million for the month, a record for the company, and a substantial increase on the $l2 million of new business written during the month of September, 1985.

Sir George said that with shareholders’ funds of over $62 million as at September 30, the company was in a strong financial position with moderate gearing, substantial reserves and high levels of liquidity.