Goldfields Money shares rise despite downgrade

Goldfields Money shares jumped on the Australian Securities Exchange today, despite the regional lender forecasting a drop in full-year profit.

Goldfields Money, with was formerly known as Goldfields Credit Union prior to listing on the ASX last year, said today it expected its full-year net profit to come in slightly below the $103,511 net profit it lodged for the half year ended December 31.

Managing director David Holden said while the lender’s profits were short of its target, continued investment was delivering encouraging balance sheet growth.

“Goldfields Money will complete its first year as an ASX-listed company having made significant progress,” Mr Holden said.

“It will commence FY14 as a significantly stronger authorised deposit-taking institution and continues to have before it a range of growth opportunities.

“It’s a matter of systematically managing the growth in deposits and loans in targeted market segments, whilst being cognisant of both generating an appropriate margin and risk profile.

At close of trade today, Goldfields Money shares were up 27.7 per cent. Trading at 98 cents.

Since listing in May last year, Goldfields Money has grown its total assets by $3.6 million per month

The lender has also provided more than $4 million per month in loans in the second half of FY2013.