Thanks to Belgarian for pointing me in the right place to uncover the equivalent figures for UDC. UDC is ANZ's wholly owned finance subsidiary and probably a better measuring stick for some of those other NZ listed finance companies.
https://www.udc.co.nz/pdf/UDC_Prospectus.pdf
The 'profit before tax' is listed as $59.664m (p35). But this includes a provision for credit impairment of $7.123m which I would remove to get the picture of ongoing operational performance. So I get EBT of $66.787m.
Now go to note 4 (p43) on interest expense. There is underlying interest over and above what is due to debenture holders of $16.623m.
So total underlying EBIT = $66.787m + $16.623m = $83.07m
Now turn to page 45 (note 8) and you will see total loans and advances of: $2,065.117m
So the operating margin based on the end of year loan balance book is:
$83.07/$2065.11 = 4.02%
That is almost twice the margin of the underlying ANZ bank in NZ, which is not what I was expecting. I will have to consider.
1/ whether I have made a mistake.
2/ what all this means for the likes of the potential of Heartland.
SNOOPY
Bookmarks