While many finance companies continue to face difficult times, PGG Wrightson Finance has reported its loan book reaching $500 million.
Group general manager of financial services Michael Thomas said the company's deposit reinvestment rate was 80 per cent during the past six months. That reflected a loyal investor
client base who associated strongly with the brand and understood the lower risks in the rural sector.
He said the reinvestment rate was a key to the recent success of the business, along with a strongly diversified funding base.
Since Pyne Gould Guinness and Wrightson merged, the loan book had grown at an annual compound rate of 25 per cent, compared with growth in the overall rural finance sector of 15 per cent, Thomas said.
The $60 million Wrightson Finance loan book and the $225 million PGG Finance book were merged in September 2005, with the two finance companies merging formally in March 2006.
- NZPA
