Latest news with #Centrix
RNZ News
5 hours ago
- Business
- RNZ News
Households boosted by falling interest rates
Centrix said mortgage inquiries were up 22 percent, reflecting more activity in the housing market. Photo: Unsplash/ Artful Homes Credit bureau Centrix says households are starting to feel the benefit of lower interest rates and weaker inflation - but some people are still feeling the pinch. It has released its latest data, which shows demand for both consumer and business credit rose in May, up 4.9 percent and 8 percent respectively year on year. It was the fourth month in a row that overall consumer arrears were lower than in 2024. "The main thing we're seeing is the three-month trend of consumer arrears decreasing," said managing director Keith McLaughlin. "That's a really positive sign and it shows consumers are starting to feel the benefit of the reduction in the cost of living and also the reduction in interest rates. I think we're starting to see that flowing through to households now and they are managing their budgets a lot better." He said it always took a while for the impact of falling interest rates to be felt. "We are certainly starting to see a more positive attitude from consumers. I think more consumer confidence is coming back into the market. That in turn is flowing through into some of the businesses where they are now starting to see things improve slightly so across the board I think we've seen a bit of an improvement in the economy." The proportion of people who were behind on their borrowing fell to 12.43 percent of the consumer "credit active population" or about 483,000. That was down from 12.61 percent the month before. But the number of consumers who were more than 90 days overdue on a payment had risen to its highest level since July last year, at 83,000. Mortgage arrears improved to 1.49 percent, or 22,600 home loans past due, down 1400 on the month before. Centrix said mortgage inquiries were up 22 percent, reflecting more activity in the housing market. Approved new mortgage lending was up 22.5 percent in the April quarter compared to the same period last year. It remains 17 percent below the same period in 2021, during the property market boom. Centrix said people under 25 were feeling the most financial pressure because they had limited buffers and more exposure to instability. Middle-aged households were next most affected. The number of financial hardship cases increased and was up 13.3 percent but Centrix said that could be a positive sign of people highlighting difficulties with lenders and putting plans in place. Company liquidations remained high, up 30 percent on the previous year but Centrix said the rate of growth was starting to ease. There were 175 liquidations in April, and Centrix said the situation was particularly challenging for smaller firms in construction, property and hospitality. Over the past year, 730 companies in the construction sector were liquidated - an increase of 48 percent compared to the previous year. Property operators, cafés and takeaway food, and road freight companies were also commonly placed into liquidation over the past year. McLaughlin said he expected to see the improvement continue. "Mainly because we're also seeing credit demand increasing - as people go out and buy things either houses or cars or something on credit, that's staring to trend up again and that reflects consumer confidence going forward. If consumers feel as though they don't have the certainty of a job they certainly won't go out and spend money on credit." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Scoop
5 days ago
- Business
- Scoop
Built To Endure: MTF's Long-Term Strategy Delivers Growth In Tough Times
Press Release – MTF While many businesses are trimming budgets, MTF is increasing its investment in its people, brand, and technology to deliver long-term value to its shareholders and customers. Releasing its FY25 half-year report, Chair Mark Darrow commented: 'We're pleased to share our Half Year Report, highlighting continued growth and investment in our people, technology, brand, and local communities. At a time when rising costs and economic uncertainty are prompting many businesses to scale back, MTF is charting a different course; one built on resilience, values, and long-term thinking.' Backed by a unique business model and powered by strategic investment in brand and technology, MTF is showing that it is possible to grow responsibly without compromising affordability for customers. 'Now more than ever, Kiwis need financial partners who are local, and on their side,' says CEO Chris Lamers. 'We are not chasing short-term gains; we are building a business that stands the test of time and helps communities thrive. Looking ahead, we're focused on what matters most -delivering exceptional customer satisfaction, growing our market share, driving total shareholder return, and building for the future through continued investment in business technology and transformation.' Holding firm while others retreat In the face of economic pressure, MTF has: Grown revenue – while reducing administration overheads by 12 percent 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. Grown total assets up to $1.23b Refreshed the brand and increased marketing investment – driving greater awareness and preference in both vehicle and personal lending categories Achieved record originator earnings of $48.1m, up 9 percent on last six months Increased dividend by 43 percent to six cents per share 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. 'Our Originators aren't just writing loans – they are local businesspeople supporting their communities,' says Lamers. 'That model gives us strength, and more importantly, it gives us purpose.' 'In the past 12 months, MTF has increased its investment in technology and will be rolling out a new platform over the coming year. At the same time, a refreshed brand and increased marketing investment is driving greater awareness and preference for the business, showcasing the focus on small business and non-vehicle loans. 'The investment in a new platform is an investment in both technology and people, ensuring we can leverage new systems to deliver on enhanced analytics, using artificial intelligence to create better experiences for our team and our customers, as well as launch new products and continue evolving existing ones.' Lamers is frank about the pressures but remains optimistic: 'It's a competitive space, and we are realistic about the challenges. But our focus is on long-term, sustainable growth – where our customers and our shareholders have a great outcome, rather than chasing short-term wins at the cost of long-term performance.' Four years ago, MTF's Board set in place a new strategy – and that direction continues to deliver. 'The ongoing, consistent investment in business transformation and product diversification have played a key role in positioning the business to weather economic uncertainty while staying connected to customers and ready to adapt,' says Darrow. MTF's strategy stands in contrast to much of the industry – investing in future capability rather than scaling back, and choosing to grow with intention, not pressure. 'That why we will keep making lending about people – and why we'll continue to earn their trust in a changing world,' says Lamers. About MTF: MTF is 100 per cent New Zealand owned, and our history dates back to 1970. We provide innovative finance solutions to New Zealanders through our 54-strong franchise network, vehicle dealers and partners such as AMI. This has helped us grow into a business with assets of more than $1.23b. We are launching new products and partnerships while staying true to our core – that we are people helping people, powered by a world-class funding system. MTF has been recognised and rewarded as the top-rated finance company in New Zealand, in 2024 the company was awarded Reader's Digest Top Trusted Brand award in the car loan provider category and rated the top finance company on Trustpilot. MTF is listed on the NZDX.
Scoop
5 days ago
- Automotive
- Scoop
Built To Endure: MTF's Long-Term Strategy Delivers Growth In Tough Times
Releasing its FY25 half-year report, Chair Mark Darrow commented: 'We're pleased to share our Half Year Report, highlighting continued growth and investment in our people, technology, brand, and local communities. At a time when rising costs and economic uncertainty are prompting many businesses to scale back, MTF is charting a different course; one built on resilience, values, and long-term thinking.' Backed by a unique business model and powered by strategic investment in brand and technology, MTF is showing that it is possible to grow responsibly without compromising affordability for customers. 'Now more than ever, Kiwis need financial partners who are local, and on their side,' says CEO Chris Lamers. 'We are not chasing short-term gains; we are building a business that stands the test of time and helps communities thrive. Looking ahead, we're focused on what matters most -delivering exceptional customer satisfaction, growing our market share, driving total shareholder return, and building for the future through continued investment in business technology and transformation.' Holding firm while others retreat In the face of economic pressure, MTF has: Grown revenue - while reducing administration overheads by 12 percent 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. Grown total assets up to $1.23b Refreshed the brand and increased marketing investment - driving greater awareness and preference in both vehicle and personal lending categories Achieved record originator earnings of $48.1m, up 9 percent on last six months Increased dividend by 43 percent to six cents per share 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. 'Our Originators aren't just writing loans - they are local businesspeople supporting their communities,' says Lamers. 'That model gives us strength, and more importantly, it gives us purpose.' 'In the past 12 months, MTF has increased its investment in technology and will be rolling out a new platform over the coming year. At the same time, a refreshed brand and increased marketing investment is driving greater awareness and preference for the business, showcasing the focus on small business and non-vehicle loans. 'The investment in a new platform is an investment in both technology and people, ensuring we can leverage new systems to deliver on enhanced analytics, using artificial intelligence to create better experiences for our team and our customers, as well as launch new products and continue evolving existing ones.' Lamers is frank about the pressures but remains optimistic: 'It's a competitive space, and we are realistic about the challenges. But our focus is on long-term, sustainable growth - where our customers and our shareholders have a great outcome, rather than chasing short-term wins at the cost of long-term performance.' Four years ago, MTF's Board set in place a new strategy – and that direction continues to deliver. 'The ongoing, consistent investment in business transformation and product diversification have played a key role in positioning the business to weather economic uncertainty while staying connected to customers and ready to adapt,' says Darrow. MTF's strategy stands in contrast to much of the industry - investing in future capability rather than scaling back, and choosing to grow with intention, not pressure. 'That why we will keep making lending about people - and why we'll continue to earn their trust in a changing world,' says Lamers. MTF is 100 per cent New Zealand owned, and our history dates back to 1970. We provide innovative finance solutions to New Zealanders through our 54-strong franchise network, vehicle dealers and partners such as AMI. This has helped us grow into a business with assets of more than $1.23b. We are launching new products and partnerships while staying true to our core - that we are people helping people, powered by a world-class funding system. MTF has been recognised and rewarded as the top-rated finance company in New Zealand, in 2024 the company was awarded Reader's Digest Top Trusted Brand award in the car loan provider category and rated the top finance company on Trustpilot. MTF is listed on the NZDX.
Otago Daily Times
05-05-2025
- Business
- Otago Daily Times
Overdue mortgage payments hit eight-year high
By Susan Edmunds of RNZ The proportion of home loan payments past due is at the highest level since at least 2017, new Centrix data shows. The data released Monday showed 24,000 home loan accounts with payments owing, up 700 on the previous month and 7 percent on the year before. In total, 1.58 percent of home loans were in arrears, up from 1.55 percent in February. The number more than 90 days overdue was holding steady. Economist Shamubeel Eaqub said mortgage stress should be nearing its peak, because home loan rates had dropped significantly and living costs were not rising as quickly, compared to incomes. Centrix managing director Keith McLaughlin said home loans were the biggest financial commitment many people had and the main pain point for households. Many small business owners were also facing tax bills at this time of year and cashflow became tight, he said. "They probably have difficulty paying their mortgages and their tax at the same time, so it is a bit of a crunch time, particularly for those owners of small businesses who have a business secured over a home loan." He agreed the stress should ease, as the reduction in the OCR started to flow through to more money in people's pockets. New mortgage lending rose by 23.3 percent, compared to the same period a year earlier, driven by increased market activity, but it remained 18 percent below the levels seen during the 2021 property market boom. Kiwibank chief economist Jarrod Kerr said the lift in arrears was a byproduct of the recession of recent years. He said the arrears rates had not reached concerning levels, but some people were experiencing pain. "Businesses and households… we'll see it continue into the second half of this year. We're expecting the labour market to get a bit better heading into 2026, but there's still a lot of uncertainty out there that is weighing on business owners' minds. "Even though we're optimistic that, in the second half of this year, things will pick up, businesses are not there yet, and uncertainty kills growth and hiring intentions." He said conditions were likely to worsen before they got better. "It's concerning, but not at levels that would really worry us from a stability point of view. Banks put money aside for this sort of thing and we're not drawing down on that yet." Some 14,400 accounts of all types were reported in financial hardship in March, a decline of 200 from the previous month, but up 11.5 percent year-on-year. Although financial hardship cases have risen since November 2022, this has slowed won in recent months. Mortgage payment difficulties accounted for 45 percent of these cases, followed by credit card debt at 30 percent and personal loan repayments at 17 percent. The highest rate of financial hardship was among people aged 35-49. The areas with the highest arrears rates overall were Kawerau, Opotiki, South Waikato and Ruapehu. The data noted that 22,000 borrowers aged over 65 had a mortgage bigger than $500,000 and 16 percent of all people 65-plus had a home loan. Company liquidations were also up 35 percent over the past year, with transportation companies and construction firms particularly affected. Construction and hospitality businesses had increases of more than 50 percent in the number of liquidations year on year. McLaughlin said that was the result of households with tight budgets cutting back on discretionary spending. "Many businesses in New Zealand have found their cost base going up, as the cost of goods have gone up, rents, rates insurance. Consumers have been keeping their money in their pockets, because they haven't had the disposable cash, and that's impacted businesses' ability to get cash across the counter and meet their obligations." That was likely to continue for some time, he said. "I think there's still a bit of pain to come. I think businesses tend to struggle a bit more in winter, as people tend to hold back on their spending, tend to stay home more - things like new renovations, new purchases tend to get put on hold over the winter period. "I would expect to see, perhaps in September/October, a bit more stimulation into the economy, which would flow through to businesses."
NZ Herald
29-04-2025
- Business
- NZ Herald
More than half of Kiwis worry about money weekly as financial pressures remain
'These results show that while there's potential for optimism, many households are still feeling the pinch,' said FSC chief executive Kirk Hope. 'The data reflects that financial pressure hasn't disappeared.' Financial issues also had an impact on the wellbeing of those surveyed, with 59% reporting their mental health had been affected. Younger generations remain the groups that worry about money more regularly, with 35% of Gen Z worrying about it daily compared with Gen Y (30%), Gen X (31%), and Baby Boomers (16%). Job security dropped, with 80% reportedly feeling either completely, very or reasonably secure in their current employment, down from 85% in 2024. 'Job security remains high but there is a small downward trend,' the report said. Only 44% of New Zealanders said they feel financially prepared for retirement, down 6% from last year. 'At present, fewer than half of Kiwis feel financially prepared for retirement – a phase of life that should be defined by security and peace of mind,' Hope said. KiwiSaver remains the top investment New Zealanders have, with 81% of Kiwis enrolled – more than double the 40% who hold cash investments like term deposits. 'With KiwiSaver being the primary investment vehicle for most New Zealanders, it's essential that we re-examine settings around contributions and enrolment,' Hope said. 'Ensuring people can maximise the benefits of KiwiSaver is critical not just for their retirement, but for the long-term financial wellbeing of the country.' A recent BNZ Voice survey found squeezed households were resorting to high-interest credit fixes to juggle back-to-school and work costs. More than a third (37%) said they were turning to high-interest lending such as buy now, pay later services and credit cards to cover costs. The biggest start-of-year expenses were stationery (53%), transport (42%), school and work uniforms (42%) and technology-related costs (40%). Meanwhile, financial hardships in February were 16% higher year on year compared with a year ago, according to Centrix data.
