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 full year results, released on 25 November 2025:

Investing in people continues to pay off for MTF Finance shareholders. The company has posted another year of strong performance and strategic progress, maintaining record originator earnings of $91.6 million, industry-leading customer satisfaction and low arrears.

At the same time, MTF has continued to strengthen its foundations - increasing the number of people working on the frontline in New Zealand communities, relaunching its brand and rebuilding its technology platform, which is now in the early stages of rollout.

The MTF Board has declared a dividend of 17.5 cents, a slight increase on 2024, along with a special dividend of 10 cents per share. The special dividend recognises the continued strong business performance, and the near completion of the Business Transformation programme, which has been delivered at a cost well below initial estimates. This brings the total dividend to 27.5 cents per share.

MTF’s unique human-led lending model once again proved its resilience – achieving a Net Promoter Score (NPS) of 81.9, compared to 16 for the finance industry, market-leading arrears of just 1 percent over 31+ days and maintaining total assets of $1.2 billion.

Key Highlights

• Sales and Performance: The year marked MTF’s third-strongest sales performance on record, with $792.2 million in new loans.

• Originator Earnings: Maintained record earnings of $91.6 million.

• Receivables: Finance receivables closed the year at $1.098 billion, down just 1.6 per cent on FY24.

• Shareholder Returns: The combination of underlying profit and originator earnings was more than $100 million for the second consecutive year.

• An NPS score of 81.9, compared to a financial services industry of just 16 in New Zealand.

• Dividend: The Board approved total dividends of 27.50 cents per share for the period – up 58 per cent on FY24.