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Highlights

  • The company’s net interest income rose by 18.8% to NZD 3.19 million, up from NZD 2.69 million in 1HFY24.
  • Interest income surged 36.8% YoY, reaching NZD 8.59 million compared to NZD 6.28 million in the previous year.
  • GEN anticipates growth in its deposit book and greater market visibility through high-impact sponsorships and brand-building initiatives.
  • The company achieved a net margin of 14.5% in 1HFY25, more than double the 7% industry median.

General Capital Limited (NZX:GEN), a New Zealand-based financial services company, has two subsidiary companies, General Finance Limited and Investment Research Group Limited. In the first half of fiscal year 2025, (1HFY25), GEN reported a significant rise in interest income, despite operating in a volatile global economic environment. The company’s strategic initiatives and brand strength have fuelled significant improvements in key financial metrics.

Financial Performance in 1HFY25

The company’s net interest income climbed to NZD 3.19 million, an 18.8% increase from NZD 2.69 million in 1HFY24. Meanwhile, interest income rose even more sharply, jumping 36.8% to reach NZD 8.59 million, compared to NZD 6.28 million in the previous year.

During the reported period, General Finance, the company’s main subsidiary, demonstrated continuous growth and consistent development, validating the effectiveness of GEN’s strategic approach.

GEN expects to see growth in its deposit book and increased market visibility, driven by high-impact sponsorships and brand-building efforts.

Key Strengths and Challenges

The company reported a net margin of 14.5% in 1HFY25, more than double the 7% industry median. Similarly, its return on equity (ROE) climbed to 5.7% in 1HFY25, far exceeding the 1.9% industry median.

GEN’s current ratio declined slightly from 1.19x in 1HFY24 to 1.16x in 1HFY25 and the debt-to-equity ratio increased from 4.52x to 5.58x.

Outlook

The recent introduction of the Deposit Taker Act (DTA) and the Deposit Compensation Scheme (DCS) has further bolstered confidence in the non-bank deposit sector. As a result, GEN has seen growing interest from investors, and these regulatory changes are expected to sustain long-term sector growth and stability.

Share performance of GEN

GEN shares closed at NZD 0.29 per share on 6 March 2025. Over the past year, GEN’s share price has dropped by almost 5% and in the last three months, it has increased by approximately 10%.

52-week high of GEN is NZD 0.34, recorded on 28 November 2024 and 52-week low is NZD 0.185, recorded on 9 January 2025.

Resistance and support summary

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 06 March 2025. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.