Finance firm boosts market share
MTF has reported an increase in its share of New Zealand’s specialist lending market despite having to contend with economic headwinds in the past financial year.
The finance company told attendees at its annual general meeting (AGM) that a continued focus on customer-centric lending has also “positioned it as a dominant force in vehicle financing”.
It says MTF is now responsible for one in five vehicle loans in New Zealand, according to Centrix market share data, making the dealer channel the firm’s fastest-growing sector.
Chris Lamers, pictured, chief executive officer, says this achievement is a result of its strategic investments and “our ability to remain agile, embrace transformation, and prioritise customer relationships”.
The AGM on February 11 heard how MTF recognises the importance of digital innovation and its business transformation programme is progressing on schedule.
It adds significant improvements are expected over the next 12 to 18 months, including several artificial intelligence models to support lending to consumers.
“The acquisition of The Lending People has provided valuable technology infrastructure, forming the backbone of MTF’s enhanced digital lending systems,” the company notes.
“While the direct channel has faced challenges, the company remains focused on leveraging digital-first solutions to reach a broader customer base.”
MTF’s future directors programme also continues to build leadership capability within the organisation, with six originators having completed the programme.
The business, in partnership with the Institute of Directors, announced Stephen Coutts and Julia Bentley have been appointed as future directors to the MTF board.
The board told investors it remains committed to preserving and growing shareholder value and says the company is well-positioned for sustained success in an improving economic landscape.
Noel Johnston has been re-elected for another term on the board, “bringing continuity and experience to MTF’s leadership as it navigates the future”.
“As we move into FY25, our focus remains on refining our strategic plan to navigate an evolving financial ecosystem,” adds Lamers.
“With regulatory changes, technological advancements, and shifting consumer expectations, MTF is committed to staying ahead of the curve, delivering exceptional value to our customers, partners, and shareholders.”
The pledge comes after MTF reported 10 per cent growth in the 2024 financial year to finish with more than $1.1 billion in receivables and total assets exceeding $1.2b.
Profitability remained strong, with underlying profit after tax of $9.6 million, and it distributed a record $91.6m in commissions and fees to its originators, which was up by seven per cent from the previous year.
In terms of customer numbers, these increased 12 per cent year-on-year from 63,500 to 71,000.
Mark Darrow, chairman, reiterated a previous message that 2024 demonstrated the company’s resilience against headwinds.
“Despite economic challenges, the company along with our originators performed extremely well,” he says. “This is a testament to the strength of our model, our strategy, the commitment of our team, and the enduring trust of our customers.”
