Motor Trade Finance (MTF) says its annual net profit fell nearly 25 percent, even though revenue jumped 30 percent.
The finance company's net profit for the year ended September fell to $6.2 million while sales rose to $415.5 million.
MTF said the bottom line included unrealised losses as well as the $1.1 million cost of defending itself against legal action over fees brought by the Commerce Commission and a $400,000 cost for a special meeting over this issue in August.
The retiring managing director, Angus Bradshaw, explained the profit decline.
"The unrealised gains or losses on the financial instruments, that's just an accounting entry, so it doesn't affect the underlying profit."
The company said underlying profit was steady at $6.7 million.
However, the underlying result actually fell 4.3 percent from $7 million the previous year.
MTF has been appealing two High Court judgements that some of the fees it charged on 39 representative loans were not reasonable.
In the latest year, it earned $10.5 million in fees.