Geneva delivers ‘solid performance’

Geneva Finance is entering the 2026 financial year with a positive outlook, underpinned by “solid performance” across its core business units.

Quest Insurance, one of its divisions, continues to perform strongly, benefiting from stable demand and effective distribution through its dealer network, report chairman Robin King and Malcolm Johnston, managing director.

“The business remains focused on deepening relationships with existing partners while expanding its reach through direct channels, supported by agile product development and responsive service delivery,” they say in the company’s annual report.

“In the New Zealand lending operations, the priority remains on growing a high-quality loan book that delivers sustainable returns. This includes refining credit-assessment practices and enhancing customer engagement.”

A key strategic initiative across the group is implementing and automating core processes through the application of technology. 

“Investment in digital capability is expected to improve operational efficiency, reduce turnaround times and enhance customer experience. 

“The group remains focused on reinforcing its core finance and insurance operations, while positioning for sustainable long-term growth through innovation, operational excellence and a strong customer approach.”

Profits on the increase

The Geneva Group reported an audited pre-tax profit of $6 million for 2024/25, an increase of $2.4m and by 65.9 per cent when compared to the previous financial year. 

The company says the improved result is attributed to enhanced performance from Quest and its Tonga finance operations. 

The New Zealand lending operations, impacted by high loan delinquencies, led to an increased impairment charge for the year matching the 2024 charge. 

Quest continued to perform well with net profit before tax of $7.3m in the past fiscal year meaning it continued its annual double-digit growth trend. Gross written premiums increased by 20.4 per cent to $55.8m, driven by robust market demand and expanding distribution channels. 

Claims costs remained stable, reflecting continued underwriting discipline. Investment income rose by 13.7 per cent to $2.1m, supported by strong cash flows and positive term-deposit rates. 

Quest also maintained a solid liquidity position with cash on-hand increasing by 40 per cent to $42.1m. Its solvency ratios remained strong, underscoring its “sound financial position and commitment to long-term stability”. 

King and Johnston report the past year’s result “demonstrates Quest’s continued momentum in the market, underpinned by prudent financial management and a deliberate focus on strengthening our operational foundation to support future growth”.

They add: “In 2025, the positions of financial controller and manager of risk and compliance were created to ensure a specific focus on these areas was enhanced. Both report to the CEO of Quest.”

The Kiwi lending operations, meanwhile, reported a $3.4m loss for the year ending March 31, 2025, which was $3.2m better than the $6.6m loss in the prior year. 

“This improvement is mainly driven by the recharge of insurance-related costs now being passed onto the insurance operations from the beginning of the current year.” 

Loan-loss provisioning hit $4.7m in 2024/25 – an identical charge to the 2024 year. Lending for the full year increased by 4.6 per cent to $55.6m. 

Additionally, dealer floorplan funding grew by 4.5 per cent to top $15.1m for the year. Net receivables after provision increased from $110m to $117.3m for 6.4 per cent growth.

The company says its key focus for lending now is improving the quality of loans approved and growing the loan book. Recent changes processes, including the appointment of a new credit manager in January 2025, will support this objective.

The implementation of a new lending applications onboarding platform is under way and is expected to be completed within 2026’s second quarter. The Tonga operation reported a $2.1m pre-tax profit, up $300,000 and 18.9 per cent on last year.

Taking green approach

Geneva Finance says it remains mindful of its environmental footprint and is committed to operating in a manner that supports sustainability. 

“As part of this commitment, when the company relocated its operations, a deliberate effort was made to secure environmentally responsible premises,” states the annual report. 

“The company entered into a lease for its new office at Sylvia Park, Mount Wellington, Auckland, which holds a six-star Green Star Design and As Built NZv1.0 certified rating. 

“This certification reflects the building’s high performance in areas such as energy efficiency, water conservation, indoor environmental quality and sustainable materials use. 

“Geneva continues to explore opportunities to improve environmental outcomes across its operations including energy use, waste reduction and digital transformation initiatives that reduce reliance on paper-based processes.”

Financial summary for 2024/25

After-tax profit: $4.5m, up by $2.35m and 105 per cent. Revenue: $75.6m, up by $9.6m and 14.6 per cent. Total group assets: $212.2m, up by $15.7m and eight per cent. Operating costs: $10.8m, down by $2.9m and 20.9 per cent. Return on equity: 11.19 per cent, up 5.92 per cent and by 89 per cent.

Funding: $87.3m drawn on $100m securitisation facility, $610,000 bank facility repaying by July 31, 2025, and $16m wholesale investor debt, which includes director and shareholder loans.

The board declared an interim dividend of 1c per share, which was paid on December 20, 2024. A final dividend of 1.5c per share was declared in respect of the year ending March 31, 2025, which was paid on July 25. 

“These payments reflect the group’s continued commitment to delivering value to shareholders while maintaining a balanced approach to capital management and reinvestment in core business growth,” say King and Johnston.

About the company

Geneva Finance offers lending products including personal loans, vehicle finance, and insurance. 

Loan origination is conducted through three primary distribution channels. These are “direct” via Geneva’s digital platforms and contact centre, “broker” through accredited finance brokers and “dealer” in partnership with car dealerships.

About 83 per cent of lending is directed toward vehicle finance with the rest being unsecured personal loans. Geneva’s finance products include hire-purchase agreements and personal loans, which are secured by registered security interests over personal assets such as cars and, in some cases, mortgages over homes.

As of March 31, 2025, the company’s New Zealand receivables ledger totalled $123.8m prior to provisions for deferred revenue and doubtful debts. 

This included receivables held by the Geneva Warehouse Trust and was spread across 9,224 loans with an average size of $12,500. Its combined net-book value of receivables after provisions was $117.3m. 

The Tongan operation’s receivables ledger stood at $10m prior to provisions and was spread across around 1,882 loans with an average balance $5,600. The wide distribution of loans by number and “relatively small size reflects a broad spread of credit risk”. 

Quest Insurance provides automobile insurance products irrespective of whether Geneva has provided finance. Its largest products by volume are comprehensive vehicle insurance and mechanical breakdown insurance. 

In the past fiscal year, Quest recorded $55.7m in gross written premiums and maintained about 140,000 active policies. Quest holds an AM Best financial strength rating of B and an issuer credit rating of bb+, both with stable outlooks. Geneva Finance employs around 73 staff in Auckland.