Profits up at F & P Finance

Fisher and Paykel's finance unit boosted profit by 20 per cent last year, after its parent company was bought out by the Chinese company Haier. Photo / NZ Herald
Fisher and Paykel's finance unit boosted profit by 20 per cent last year, after its parent company was bought out by the Chinese company Haier. Photo / NZ Herald

Fisher & Paykel Finance, whose parent F&P Appliances was bought out by China's Haier last year, boosted annual profit 20 per cent on lending growth on its Q Card and cheaper funding from its debentures.

Net profit rose to $19.9 million in the 12 months ended March 31 from $16.6 million a year earlier, according to financial statements lodged with the Companies Office. Net interest income gained 7.6 per cent to $42.7 million.

The Auckland-based lender boosted net receivables to $439 million as at March 31 from $395.5 million a year earlier, underpinned by 18 per cent growth in its net finance receivables, made up primary of loans on its Q Card. The card is accepted at retail stores including Warehouse Group, Big Save Furniture, Rebel Sport, JB HiFi, Mitre 10 Mega and Dick Smith.

F&P Finance grew its deposit base to $135.2 million as at March 31 from $111.4 million a year earlier, and cut its weighted average interest rate to 6.4 per cent from 7.4 per cent a year earlier. It had bank debt of $203.4 million at the end of the period, compared to $245.5 million a year earlier.

Since the March 31 balance date, F&P Finance lost its wholesale funding arrangement with Smiths City. The Christchurch retailer repaid the $70.9 million bulk finance receivable in April, which made up about 16 per cent of F&P Finance's loan book, and accounted for $8.7 million in net interest income.

F&P Appliances pulled out $15.7 million in the 2013 financial year, up from $15.1 million a year earlier.

Haier retained the finance unit after taking control of F&P Appliances, having looked at divesting the lender when launching its takeover.

- NZ Herald

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