Geneva Finance has reported a 23.8% decrease in pre-tax profit for the first half of the year, with a pre-tax profit of $2.5 million.
This decline was higher than the range of 13% to 15.5% that the company had previously advised to the market.
The shortfall in profit was attributed to additional insurance claims reserves and an increase in the cost of funds.
Geneva Financial Services, the lending business, saw a 29% decline in pre-tax profit, while Quest Insurance Group reported a 27.1% increase in pre-tax profit.
Federal Pacific Tonga, in which Geneva Finance has a 60% stake, performed well and reported a pre-tax profit of $0.9 million.
However, Stellar Collections, which manages the GFSL receivables ledger, reported a loss of $0.2 million.
Overall, the company's after-tax profit for the period was $1.8 million, down 30.8%.
Geneva Finance's total assets increased to $185 million, and its equity to total assets ratio stood at 21%.
The company said the half-year result was disappointing, primarily due to rising interest costs, but it expects the insurance business to continue performing well in the second half of the year.
Geneva Finance also announced the appointment of Laurence Goodman as a non-independent director.
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