ANZ's UDC Finance boosts first half profit 11% ahead of sale to China's HNA
ANZ announced the planned sale of UDC in January.
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ANZ Bank New Zealand's UDC Finance unit lifted first-half profit 11 percent as it prepares for its sale to China's HNA Group,
Net profit rose to $30.2 million in the six months to March 31, from $27.3 million a year earlier. Revenue was flat at $60.4 million, and the company said the profit growth was "driven by low provision charges and lending growth across a range of industries." Full accounts have not been published, with the only details available on a one-page statement.
ANZ announced the planned sale of UDC in January. The deal is subject to various approvals and is expected to be completed late in the second half of the year, and will deliver a net gain to ANZ of A$100 million. The sale price was $235 million above UDC's net assets, or a price-to-book ratio of 1.6 times, at the point it was announced.
UDC's loan book expanded to $2.73 billion as of March 31 from $2.48 billion a year earlier. Bad debt provisions dropped 61 percent, the company said.
"We're well positioned as we move into a new period of HNA Group ownership, which will bring more growth and investment to UDC," chief executive Wayne Percival said. "UDC is experiencing growth in lending to vital sectors including transportation, construction and forestry."
Hainan, China-based HNA, which evolved from a regional airline to a global conglomerate with more than US$90 billion of assets, plans to preserve UDC's existing operations, keeping all staff and customers, it has said.
(BusinessDesk)
Sophie Boot
Tue, 06 Jun 2017
Tue, 06 Jun 2017
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ANZ's UDC Finance boosts first half profit 11% ahead of sale to China's HNA
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