MTF Finance has today reported a net profit after tax of $11.6 million for the 12 months to 30 September 2023, up 38 per cent on the previous year, with lending assets increasing by 32 per cent to $1.010 billion.
Underlying profit after tax has increased by 71 per cent to $11.3 million with total lender earnings up 27 per cent to $85.5 million.
MTF Finance says the result reflects the continued focus on community lending and expanding its vehicle dealer network and digital offering. The outcome is a stellar year for MTF Finance lenders, in which they have been able to support more New Zealanders to access safe lending solutions than ever before, and projects the company into the top tier of non-bank lenders.
This unique community-based lending model where MTF Finance franchises and vehicle dealers make the lending decision, recorded record low arrears at less than half the industry average, which is a strong measure of how the company’s lending approach creates better customer outcomes and supports customers over the long-term, not just when they first get the loan.
It has also supported a record growth year that has delivered unprecedented momentum, with lending up 40 per cent year-on-year to $846 million, up from $607 million in September 2022.
“As a New Zealand-owned and operated organisation, MTF Finance has a proud history spanning more than 50 years and we are focussed on helping New Zealanders get ahead by making lending about people again,” says Chirs Lamers, Chief Executive Officer of MTF Finance.
The firm added that the combination of strong lending growth and well-managed operating expenses allowed the company to hold interest rates as low as possible for customers, as well as deliver record returns to lenders.
“Key to achieving this was a clear strategy designed to deliver growth and resilience during a tough economic climate,” says Mark Darrow, MTF Finance Chair.
“We grew our reach, adding franchises to reach a total of fifty-one around the country, with two more opening in November, bucking the trend when others are closing local branches. We also grew the motor dealer channel with more focus in this area and completed a Fintech acquisition. It has been a busy and successful year.”
The purchase of The Lending People in February 2023 gave MTF Finance customers access to a new online digital lending channel, while franchise branches continued to provide dedicated financial advice and solutions at a local level.
Looking forward, Lamers says the company will continue to be close to its customers, to ensure it is proactive in looking after customers as economic conditions continue to harden with increases in wholesale interest rates and inflation fuelling a cost-of-living crisis.
The company plans to launch the brokering of home loans through its franchise network and will continue to enhance its product offering through both existing and new partnerships. There will be an increased focus on community engagement through an evolving Environmental Social and Governance (ESG) strategy.