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Financial Summary

2016 Operating Results

  • Net portfolio income increased by 16% to $317.4m, underpinned by a 47% increase in receivables primarily resulting from the acquisition of F&P Finance on 29 February 2016. Increases in receivables in the Interest Free Cards and NZ Leasing businesses were offset by a decrease in receivables in other segments, due to a higher mix of consumers.
  • Impairment losses increased by $34.1m to $78.6m. The biggest factor contributing to the increase was the additional provision of $23.8m recognised against major single exposures in the Enterprise portfolio and other one-off provisions that were recognised across other receivables portfolios and enhancements made to our collective provision models. Excluding these one-off amounts and when measured as a percentage of average receivables, impairment losses increased to 3.5% from 3.1% in the prior year.
  • Operating expenses increased by 45% to $157.5m. However, excluding the impairment of goodwill of $8.5m and software one-off expenses of $17.6m incurred in the current year and the acquisition costs associated with the F&P Finance business of $7.4m, expenses increased by 14%. This was driven by the full year consolidation of TRL and four months’ operating costs associated with the F&P Finance business of $13.1m. Excluding F&P Finance operating costs, total operating expenses increased by 4%.
  • Sales volume grew by 19% to $1,350m, driven by the volume from F&P Finance. The New Zealand Leasing and the Australian Cards businesses continue to drive the volume growth of the Group.

2016 Operating Results Image
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