ANZ Bank finance company, UDC Finance, says that even though it is one of the few finance companies to survive, it still faces plenty of competition.
UDC chief executive Tessa Price said the banks are now competing in the finance company space and there are still plenty of specialist lenders.
UDC Finance's net profit rose 27% to $23.8 million in the six months ended March compared with $18.7 million in the same six months last year.
Ms Price said the result was driven by strong growth in revenue with bad loans dropping 29% as new lending grew 5%.
UDC's cost-to-income ratio fell 11%.