Why to consider these 2 NZX financial stocks in 2022?

Highlights

• The financial sector is the segment of a country’s economy that provides financial services to retail and commercial customers.
• Marlin notified on 6 January that the undiluted net asset value as at 31 December 2021 stood at $1.2558.
• Geneva reported a pre-tax profit of $4 million for six months to 30 September 2021. 

The financial sector is the segment of a country’s economy that offers financial services to retail and industrial customers. The sector involves many different industries like insurance firms, banks, real estate brokers and investment houses.

The financial sector is the key driver of an economy and provides a free flow of liquidity as well as capital.

Let’s skim through the performance of 2 NZX financial stocks till date.

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Marlin Global Limited (NZX:MLN)

Listed investment company Marlin Global makes investments in developing firms based outside of NZ and Australia.

Marlin notified on 6 January that the undiluted net asset value as at 31 December 2021 stood at $1.2558. The Group also noted that 47,256,870 warrants had been on issue and might be applied on 20 May 2022 as of 31 December 2021.

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The actual exercise price of each warrant is $1.28 minus the dividend announced per share by the company. Marlin also informed that dividends of 7.43cps had been declared to date and one more dividend was likely to be declared in the rest of the period until the exercise price.

Meta Platforms (10%), Alphabet (7%) and Tencent (7%) held the largest portfolio holdings as at 31 December 2021.

On 10 January, at the time of writing, MLN was trading at $1.47, down 0.68%.

Geneva Finance Limited (NZX:GFL)

NZ-owned finance entity Geneva Finance offered finance and financial services to SME and consumer credit markets.

Geneva reported a pre-tax profit of $4 million (+22% on pcp) and a PAT of $3 million in line with pcp for six months to 30 September 2021.

DO READ: How did 2 NZ banks fare in 2021?

The financial impact of the lockdown is shown in half-year results to a certain degree and the rest is reflected in lower future profit growth. Geneva paid an interim dividend of 1.25cps on 30 November 2021.

GFL remains confident of its business strategy ahead.

On 10 January, at the time of writing, GFL was trading flat at $0.73.

Bottom Line

New Zealand has a relatively resilient financial system that is well positioned to tackle a crisis situation.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)