Strong Revenue Growth And Returns For Originators Underpins MTF Finance’s Half Year Result

MTF Finance has reported a growth in new loans of 7 percent and originators (franchises and vehicle dealers) earnings up 17 percent to $47.5m and its loan book has grown 10 percent to $1.1b.

This sustained growth comes off the back of a record FY2023 where sales grew 40 percent, and in a challenging economic environment.

Announcing the result, Chair Mark Darrow said, “MTF Finance continues to take a long-term view of the business, andbusiness and is investing heavily in its technology platforms, investing in brand building and growing organisational capability to ensure the next 50 years is even stronger than the previous fifty.”

Says CEO Chris Lamers, “We continued to see good growth in the first half of this year and have maintained our focus on returns for our originators, who are also shareholders, and shoulder the majority of the risk when writing a loan.”

The heavy investment in technology and people capability resulted in a 25% year on year decrease in underlying profitability, now at $4.6 million, but takes a long term view of adding enterprise value.

Lamers adds, “We are committed to improving and expanding our network to help more customers with a diversified product range such as the launch of home loan brokering and maintaining our commitment to personalised service, based in the local community. This is what motivates the team to continue to show up each day to push MTF ahead in the pursuit of being New Zealand’s most loved non-bank lender. Ultimately, we aim to make lending about people again. This is reflected in our 10,000+ customer reviews on Trust Pilot and our recognition as the most trusted car loans provider in New Zealand in the 2024 Readers Digest Trusted Brands Survey.”

Towards the second half of the year, MTF believes that the economic headwinds will impact lending volumes in the short term. Lamers adds, “The high quality of MTF’s lending decisions is supported by arrears (31 days +) remaining at 0.85 percent, well below the industry average. We remain committed to making the right decision for our customers and anticipate lending volumes will continue to soften for the rest of the financial year.”

Chair Mark Darrow “The continued diversification of MTF Finance’s product range not only creates future growth opportunities but helps it manage through different economic cycles. We expect this year to finish similar to the record FY23 year in terms of loan volumes, and it sets the business up well for 2025.”

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