Loans are available for many worthwhile purposes including debt consolidation, education, vacations etc, which can be repaid in convenient monthly installments to suit your budget.
Massy Finance GFC Ltd recorded after tax profits of $8.0Mn for financial year ended 30 September 2017, representing a decrease of 3.6% from prior year. Revenue from interest income declined by $3.1Mn or 6.8% from the previous year. Our new business was impacted by an increasingly price-aggressive, competitive market and an economic climate that remains challenging reflecting a 15% decline in vehicle sales.
Given the outlook for 2017 and a surplus cash position, we reduced our borrowings from our parent company by $30Mn or 38%. This contributed to the overall decline in interest expense by 2%. Additionally, Recovery efforts were intensified with positive results; a 24% reduction in impaired loans and a 47% decline in loans past due but not impaired, year on year to fiscal 2017.
Our capital adequacy continues to be in excess of the 8% current regulatory requirements, with an increase by 2% year on year from 22% in 2016. The same can be said when considering the capital adequacy minimum, as the Central Bank progresses the implementation of a revised capital methodology more aligned to Basel II/III.
We anticipate changes to our provisioning and credit-risk attributable to the change in accounting standards from IAS 39 to IFRS 9 in 2018/19 and will continue to develop the framework required to efficiently navigate the process.
Despite challenges faced during this economic downturn, we continued to invest in our business operations including technology, attracting and retaining top talent and seeking new business opportunities, including efforts to expand our lending and deposit footprints.
Our core IT infrastructure is scheduled for launch in our new financial year and will allow for more efficient operational processes, better analytics, enhanced Compliance, AML/ATF, Regulatory and Financial Reporting and an improved customer experience.
Our 2017 performance is a clear reminder of how quickly expectations and conditions can change and the importance for us to be nimble and maintain focus on the strategies for competitive advantage positioning.
We will continue to explore opportunities which add value to our customers and are in line with our riskreward framework. Customer feedback has been and will continue to be key as we execute our Customer Service philosophy. We will also continue to engage the Financial Services Business Unit in joint initiatives aligned to our strategic objectives while leveraging the wider Massy Ecosystem in the context of a difficult economic climate