NZF writes down value of Mike Pero joint venture
NZF Group, which recently launched the country's first residential mortgage-backed securities in three years, has posted a full-year loss after it wrote-down the value of a joint venture with Mike Pero Mortgages.
Monday, 31 May 2010
The financial services company made a full-year loss of $4.6 million, compared to $3.4 million a year earlier, after it was forced to impair the value of its MPMH joint venture with Mike Pero Mortgage's by almost $7 million. Excluding the impairment loss, NZF turned around its operating performance to report a $3.4 million profit, from a $4.8 million loss in 2009.
Managing director John Callaghan said the impairment loss came from a reassessment of short-term growth rates and projections to its profitability due to changes in MPMH's KiwiSaver sales and marketing strategy following the global financial crisis, and had no cash impact.
NZF is looking to raise $100 million from institutional investors by securitising a chunk of its loan book in a bid to inject new funds into its mortgage business. Over the 12 month period, NZF boosted its home loans portfolio to $200.5 million from $174.1 million, and it said it will focus its lending on first mortgage securities, which make up about 96% of its loan book.
The financial institution reduced its total gross impaired assets to $11.8 million in the year, from $16.8 million, and more than halved its total past due assets to $12.6 million. Its property finance loan portfolio has been cut to $61.5 million from $84 million.
NZF increased its facility with Westpac to $225 million from $200 million, and extended its expiry date to Oct. 18 this year. It repaid its $40 million facility with Commonwealth Bank of Australia in February.
Commenting is closed
Find a Rate
4 May 2015
24 April 2015
21 April 2015
20 April 2015
12 April 2015
Cash PIE Rates
Weekly Updates including news and commentary
Disclaimer - Every possible effort has been made to keep the information in the tables and on this site as accurate as possible, however, neither the publisher, Tarawera Publishing, nor anyone engaged to compile the rates and this site accept any liability for inaccuracies or any loss suffered as a result. It is strongly advised that readers check loan details with providers. The full terms and conditions of this site can be found here.
© Copyright 1997-2015. Tarawera Publishing Ltd. All Rights Reserved.