UDC Finance boosts firsthalf profit

ANZ Bank New Zealand’s UDC Finance unit lifted firsthalf profit 11% 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 onepage statement.

ANZ announced the planned sale of UDC in January. The deal is subject to various app rovals and is expected to be completed late in the second half of the year, and will deliver a net gain to ANZ of $A100 million. The sale price was $235 million above UDC’s net assets, or a pricetobook 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 6%, 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 trans portation, construction and forestry.’’

Hainan, Chinabased HNA, which evolved from a regional airline to a global conglomerate with more than $US90 billion of assets, plans to preserve UDC’s existing operations, keeping all staff and customers, it has said. — BusinessDesk