Lending model ‘resilient’
MTF Finance has reported a strong half-year result for the six months ending March 31, which it says reflects “disciplined growth, continued investment and the resilience of its local lending model”.
As Kiwis continue to navigate cost-of-living pressures, cautious spending and economic uncertainty, the company says demand remains strong for lenders “who understand local communities and can offer practical, responsible support”.
For the six-month period, it reported underlying profit after tax of $4.7 million, up from $4.1m, $407.7m in new lending and $47.4m in originator earnings. Total assets came in at $1.2 billion while net asset-backing per share was $3.64m.
Noel Johnston, pictured, acting chairman, says the result reflects the strength of MTF’s business model and its long-term investments.
“Over the past six months, many households and businesses have continued to feel financial pressure,” he adds. “While we saw signs confidence was slowly improving in some areas, people were still being careful with their money.
“Against that backdrop, this result demonstrates the resilience of our model, the quality of our network and confidence we have in the future. We continue to invest in things that matter long term – technology, customer experience, brand and product capability – while maintaining strong financial discipline.”
Chris Lamers, chief executive officer, says: “It has remained a difficult environment for many households and businesses.
“We’ve continued to see customers reassessing spending, delaying major purchases and looking for lenders that genuinely understand their circumstances. However, we did see the much-promised green roots start to grow prior to the Middle East conflict.
“Where our model continues to stand apart is originators who own their own franchise, and live and work in the communities they serve.
“They know their customers, understand local conditions, and can have real conversations about what’s affordable and appropriate. As volatility returns to the economy, that human connection matters more than ever.”
MTF says the strong first-half result was supported by disciplined cost management, lower cost of funds and strengthening the business for long-term growth.
The company has also continued investing in MTF Connect, its multi-year business transformation programme “designed to modernise technology, improve efficiency and create a more seamless customer experience”.
“As expectations evolve, we need systems and technology that allow us to move faster, support customers better and continue improving the experience we deliver,” explains Lamers. “Transformation of this scale is a significant investment, but it’s critical to ensuring we remain competitive.”
With a network of 55 locally owned franchises and approved dealers, MTF says its “people first” approach remains a key point of difference in a market where many customers still value local relationships.
“New Zealand’s economy is still rebuilding confidence,” says Johnston. "But businesses built on strong relationships, responsible lending and long-term thinking are the ones that endure. Our focus remains clear – supporting customers, strengthening our network and continuing our ambition to make lending about people again.”
