Latitude reports 341% surge in first-half profit
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The news: Consumer finance company Latitude has posted a 341% leap in first-half profit to $39.7 million.
The numbers: The company booked $7 billion in gross receivables, its highest level in five years, as spend and lending volumes across its pay and money divisions rose 12% year on year to $4.2 billion.
Net interest margins were up 142 basis points year on year. Latitude attributed this to targeted pricing initiatives and lower funding costs as cash rates reduced in Australia and New Zealand.
The company declared an interim dividend of 4 cents per share, having paid no interim dividend this time last year.
The context: Latitude's managing director and chief executive Bob Belan said retail trading gained momentum during the first-half period, with interest rate reductions driving "pleasing consumer confidence".
"Consumers became more comfortable purchasing on credit," he noted, supporting a 13% rise in Latitude's credit card purchase volumes to $3.5 billion. New partnerships also contributed to this increase, he said.
The source: ASX
