Ann: Half Yearly Report and Accounts, page-2

On 16 December 2014, literally two weeks before the end of the calendar year, FSA release their profit guidance for the first half. At the time, they suggested it would be up somewhere between 12 and 17 per cent. It turned out to be 18.5 per cent.

For me, the most significant words in the half yearly report are ‘demand for products and services are growing’. I wait with interest for the profit guidance to be given for the full financial year. It could happen at any time and is likely to be the catalyst for a further rise in the share price. When this board tell you they are going achieve something, they do it. This is not the time to sell in my humble opinion.

Good to see the growth in the car loans. That is likely to be a winner in the years to come. Speaking of loans, they are spending money to promote their loan products. Did you note that an extra $1.3M in upfront employment related expenses was spent in the half promoting these loan products and that they expect loan growth in 2015.

If I had to come up with a negative, it would be the increase in the 90 days arrears from 5.89 to 7.76% for the business lending. I am sure the team will be tweaking things around the edges to ensure that this rate does not get out of hand.

I have full confidence in this board. The 3 cent dividend paid during the week was sweet. Hang in there, best of luck.