NZI Finance successful year

Press, 5 July 1983, Page 30

NZI Finance successful year

PA Wellington NZI Finance, Ltd’s successful 1982 year was largely because of client loyalty, despite Government regulation and intervention, the chairman, Sir Austin Wilson, says in the annual report for the year ended March 31.

A record net tax-paid profit of $3,486,000, up 35.9 per cent on the previous year, was made by the company, as reported earlier. Since balance date NZI Finance and NZI Securities have become wholly-owned by the New Zealand South British Group, Ltd, Sir Aus-

tin said. The outstanding 24.5 per cent share in the company was previously held by the Hongkong and Shanghai Banking Corporation. The general manager, Mr M. J. Wells, said that he was concerned at the ad hoc application of controls and regulations by the Government within the financial sector, and the introduction of two highly competitive, Government-sponsored deposit schemes, which created a difficult trading environment.

“In spite of its actions, the Government has throughout the year re-

iterated its long-term desire to continue the deregulation of the industry which commenced in 1976. “The issuing of additional licences for foreign exchange dealers and the tender system proposed for Government stock are signs of the Government’s good faith on the question of deregulation,” said Mr Wells. The company’s lending activities continued to be concentrated on the commercial, industrial, and agricultural sectors, he said. The average size loan within the company’s portfolio has increased, with a consequent reduction in the

administrative costs per dollar lent. “Although general liquidity was tight on occasions, the company had no difficulty in supplying existing clients as well as assisting many new borrowers,” commented Mr Wells. NZI Securities substantially increased fee-earning activities, particularly in overseas loans and corporate advice.

“Through prudent financial consolidation and careful planning, our companies are well positioned to capitalise on movements within the economy as they occur.*’