ANZ.NZX - Anyone holding?

[Snoopy]

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.

The December 16th 2014 UDC Prospectus release, at last gets the details of what happened at UDC during FY2014 out into the public arena.

https://www.udc.co.nz/pdf/udc-prospectus-2014.pdf

The 'profit before tax' is listed as $71.768m (p35). But this includes a provision for credit impairment of $11.733m which I would remove to get the picture of ongoing operational performance. So I get EBT of $83.501m.

Now go to note 4 (p44) on interest expense. There is underlying interest over and above what is due to debenture holders of $16.783m.

So total underlying EBIT = $83.501m + $16.783m = $100.28m

Now turn to page 46 (note 8) and you will see total loans and advances of: $2,272.281m

So the operating margin based on the end of year loan balance book is:

$100.28m/$2272.281m = 4.41%

A significant improvement on FY2013 and it continues the improvement from a 3.87% margin in FY2012

SNOOPY