Listing candidate UDC posts 8% lift in first half profit

Heavy machinery financier UDC has reported a strong first half result. Photo / Supplied

UDC Finance, whose owner ANZ New Zealand has earmarked for a possible share market float, has delivered an 8 per cent rise to $32.7 million in the first half to March, the bank said.

Overall revenue was $66.3m, an increase of 10 per cent, driven by increased lending, off the back of an improving economy, a buoyant motor vehicle sector and people investing in plant and machinery.

The result was achieved against a backdrop of tighter margins.

UDC chief executive Wayne Percival said UDC's lending passed the $3 billion mark for the first time during the period.

"We're pleased with this result and also very grateful for the ongoing support we've received from our customers during a period of uncertainty about our ownership," Percival said in a statement.

The outlook continues to be positive in many of the key industries we focus on, such as forestry, road transport, construction and the motor vehicle sector, he said.

Sentiment at the recent National Fieldays agricultural event at Mystery Creek also reflected a good outlook for machinery and equipment sales across the broader primary sector.

At 0.15 per cent, of the provision expenses for bad of doubtful debt remained low.

"The overall quality of the lending book remains strong and there were no individually significant write-offs in the period," ANZ said,

In March, ANZ Bank New Zealand said it's exploring an initial public offering for UDC Finance after a planned $660m sale to Chinese conglomerate HNA Group was rejected by the Overseas Investment Office in December.

The bank said then that an initial public offer as "part of a range of strategic options for UDC's future" as part of ANZ's strategy to simplify the bank and improve capital efficiency.