General Capital (GEN:NZ) subsidiary General Finance update

General Capital Limited
Level 8, General Capital House,
115 Queen Street, Auckland CBD
PO Box 1314, Shortland Street,
Auckland, New Zealand. 1140.
Phone +64 9 304 0145


General Capital (GEN:NZ) subsidiary General Finance update.

General Capital Limited advises that its subsidiary General Finance Limited, a licensed Non-bank
Deposit Taker, will upload its quarterly report for the quarter ended 30 September 2021 to the
Disclose Register today.

The attached unaudited quarterly report shows that General Finance’s business has continued to grow
with the achievement of new record levels in its total assets and Net Profit After Tax (NPAT).
 Total assets were $79.1m as at 30 September 2021, up 11.0% from 30 June 2021 and 22.6%
from 31 March 2021.
 NPAT for the quarter ended 30 September 2021 (Q2) of $323k was 46.7% up on Q1 NPAT,
and also significantly higher than the full year NPAT for the prior financial year ended 31 March
2021.
 General Finance’s capital ratio was 16.07% at 30 September 2021, which is double the
minimum requirement.

Mr. Brent King, Managing Director, explained that this report is required as General Finance Limited
holds a Non-bank Deposit Taker licence and the reporting is a requirement of the Financial Markets
Conduct Act 2013.

“It has been another very positive quarter for General Finance. We will continue to advise the market
each time General Finance Limited uploads a document to the Disclose Register”, said Mr. King.

The information can also be found at www.disclose-register.companiesoffice.govt.nz.

For further information contact:

Brent King
Managing Director
General Capital Limited
+64 21 632 660
Brent.King@gencap.co.nz

29 October 2021

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Issue 24 29 October 2021

GENERAL FINANCE LIMITED
Quarterly report as at 30 September 2021


KEY RATIOS



Capital Ratio


30 September 2021


Our capital ratio calculated in accordance
with the 2010 Regulations*

16.07%

Minimum capital ratio required by our
Trust Deed if the issuer has a credit rating

8%


Minimum capital ratio that must be
included in the trust deed under reg 8(2) of
the 2010 Regulations* if the issuer has a
credit rating

8%


The capital ratio is a measure of the extent to which General Finance is able to absorb losses without becoming
insolvent. The lower the capital ratio, the fewer financial assets General Finance has to absorb unexpected losses
arising out of its business activities.




Related Party Exposures


30 September 2021


Our aggregate exposures to related
parties as calculated in accordance with
the 2010 Regulations*

1.58% of capital

Maximum limit on aggregate exposures to
related parties that we must not exceed
that is included in our Trust Deed

10% of capital

Maximum limit on aggregate exposures to
related parties that we must not exceed
that must be included in our Trust Deed
under reg 23(3)(b) of the 2010
Regulations*

15% of capital

Related party exposures are financial exposures that General Finance has to related parties. A related party is an
entity that is related to General Finance through common control or some other connection that may give the party
influence over General Finance (or General Finance over the related party).


* Deposit Takers (Credit Ratings, Capital Ratios, and Related Party Exposures) Regulations 2010

Issue 24 29 October 2021




Liquidity

30 September 2021


Our liquidity calculated in accordance with
the quantitative liquidity requirements
included in our Trust Deed

9.72 times

The minimum liquidity requirements
required by our Trust Deed

A liquidity cover ratio of 1.25 times

Liquidity requirements help to ensure that General Finance has sufficient realisable assets on hand to pay its debts
as they become due in the ordinary course of business. Failure to comply with liquidity requirements may mean that
General Finance is unable to repay investors on time and may indicate other financial problems in its business.






SELECTED FINANCIAL INFORMATION

Quarter to
30 September
2021

Total Assets
79,104,398

Total Liabilities
72,206,687

Net Profit / (Loss) After Tax
322,633

Net Cash Inflow / (Outflow) from Operating
Activities (4,251,641)

Cash and Cash Equivalents
14,954,428

Term Deposits
1
Capital (per 2010 Regulations)
950,000
6,824,282


1
New Zealand Registered Bank deposits with original term of greater than 183 days.

Issue 24 29 October 2021

HOW THE RATIOS HAVE BEEN CALCULATED


CAPITAL RATIO

Position at 30 September 2021



Capital


Gross capital 6,897,711

Less deductions 73,429

Total capital 6,824,282



Risk

Risk Weighted
Exposures Exposure Weight Exposures

NZ Registered Bank Deposits 15,904,428 20% 3,180,886
Residential mortgages:

LVR 70% and under 53,198,159 35% 18,619,356
LVR 70% - 80% - 50% -
Second mortgages 107,481 150% 161,222
Other loans with qualifying security
over land and buildings:

LVR 70% and under 9,464,216 100% 9,464,216

Other assets 356,685 350% 1,248,398
Deductions from capital 73,429

-

Total credit risk weighted exposures
(A)

32,674,078

Total assets (B) 79,104,398

Operational and Market Exposures (A+B)/2x0.175

9,780,617


Total Exposures

42,454,695

Capital Ratio

16.07%
(being Total Capital/Total Exposures)


1
Refer to Deposit Takers (Credit Ratings, Capital Ratios, and Related Party Exposures) Regulations
2010.

Issue 24 29 October 2021

AGGREGATE EXPOSURE TO RELATED PARTIES

Loans and other on balance sheet exposures to related
parties (A) 107,957
Other related party exposures (B) Nil
Capital 6,824,282
(A + B) / C 1.58%

*Related party exposures are calculated by dividing total related party exposures by Capital
(per 2010 Regulations).


LIQUIDITY

Liquidity (A) 15,904,428

3 month expected loan receivables (B) 14,763,474

3 month expected gross deposit redemptions (C) 3,156,042

(A + B) / C 9.72 times




*The Liquidity Cover Ratio is calculated by dividing Liquidity plus the 3 month expected loan
receivables, by the 3-month expected gross deposit redemptions.