The non-bank company, that is looking to diversify its business into insurance, posted a profit of $2 million for the six months ended September 30, compared to a $1.3 million profit a year earlier, after it gained $1.3 million from a write-back in impaired loans and made $1.6 million on its interest rate swap contracts.

"It is important to understand that the write back of impaired loans means that we took a very conservative view on the possible losses from impaired loans in March," managing director John Callaghan said in a statement. "The gain on interest rate swap contracts relates to the group's home loans which was signalled in the annual address to shareholders in August."

NZF is looking to offer a new insurance range targeted at domestic customers, including home, contents and car insurance, to move away from its dependence on finance company operations.

The company's revenue slumped 21.5% to $16.8 million, as its finance company earnings declined 22% and its mortgage and insurance broking revenues dropped 20%. Still, the company grew its total assets 6.9% to $301.67 million through its home loans division.

Callaghan said the conditions would remain difficult and it will be "a challenge to continue to produce consistent results."

NZF's board decided against declaring a dividend, saying it was "more prudent to retain cash in the current market conditions."