Motor Trade Finance Limited Analysis

Overview

Motor Trade Finance Ltd (MTF) is a dealer owned finance company, providing vehicle finance to the customers of its dealer shareholders.

Formed in 1970, it has grown from a cooperative to an investor owned company. MTF operates by franchising, it listed its first debt security on NZX since June 1994.

In July 2006 MTF listed $40 million preference shares on NZX under the ticker of MTFHC on NZX.

In February 2016 it changed name from Motor Trade Finances Limited to Motor Trade Finance Limited. The ticker code remained as MTF.

Performance

The following information was extracted from Motor Trade Finance Ltd's half year results, released on 30 May 2025:

Holding firm while others retreat

In the face of economic pressure, MTF has:

• Grown revenue - while seeing a 12 percent reduction in administrative overheads through disciplined cost management.

• Reduced key customer fees - including establishment, maintenance, and settlement fees - while choosing not to pass on rising costs to borrowers, protecting affordability at a time of increasing financial strain.

• Increased market share in personal lending - with year-on-year growth of more than 20 percent, as reported by Centrix.

• Continued investment in a new technology platform - laying the foundation for long-term efficiency, scalability, and customer experience improvements. The programme achieved a significant milestone in the first half, with the ability to process loans now live.

• Total assets up to $1.23b.

• Refreshed its brand and increased marketing investment - driving greater awareness and preference in both vehicle and personal lending categories.

• Record originator earnings of $48.1m, up 9 percent on last six months.

• Dividend increased by 43 percent to six cents.

At the heart of MTF’s approach is its franchise & approved dealer model, with 54 locally owned franchises and 164 active dealers embedded in communities across the country. As shareholders in the business, MTF’s Originators bring an ownership mindset to everything they do - driving accountability, agility and a deep understanding of local needs - enabling MTF to remain close to its customers while scaling effectively.