PGG Wrightson Finance has increased its annual profit, despite a rise in bad loans.
The company, owned by the listed rural services firm PGG Wrightson, made $8.9 million in the year to the end of June, up from $7.8 million in the previous year.
Total loans fell by 5% to almost $531 million, but retail deposits have risen 15% since November, and its reinvestment rate remains strong at about 80%.
PGG Wrightson Finance chief executive Mark Darrow says the results are positive given the global financial crisis and the difficult trading conditions in the agricultural sector.
Mr Darrow says money set aside for bad loans increased to almost $9 million dollars during the year, largely because of exposure to the dairy sector.
But he says the company continues to limit its dairy exposure to about a quarter of its portfolio, which is less than the industry average of more than 60%.
PGG Wrightson Finance is covered by the Crown's Extended Retail Deposit Guarantee Scheme.