Automotive finance specialist Money3 is finally starting to see a boost to its bottom line from two years of acquisitions and asset growth.

Yesterday, the company reported a net profit of A$19.9 million for the six months to December - an increase of 26.8 per cent over the previous corresponding period.

In previous financial reports, profit was down in the year to June and down in the December half 2019. These were the result of cost blowouts and higher bad debt charges.

Money3 turned itself into an auto finance specialist in 2019 and has been bulking up since then.

In 2019 it acquired Go Car Finance in New Zealand and sold its small amount credit contract business.

Last November it set up a warehouse facility with Credit Suisse and in December it acquired Automotive Financial Services.

Earlier this month it acquired GMF Australia, formerly the local subsidiary of General Motors Financial Co.

Since 2018/19 the loan book has grown from $373 million to $550 million currently. New loan originations were up 9.3 per cent to $151 million during the December half.

The company said its existing debt facilities would support loan growth to $800 million.

The company got expenses and bad debts under control during the half. Expenses were down 1.5 per cent to $19.4 million and bad debts were down 21.6 per cent to $7.6 million.

Credit quality improved. The proportion of impaired loans fell from 90 bps in 2019/20 to 10 bps in the December half, while the proportion of sub-standard loans fell from 2.6 per cent to 2.1 per cent over the same period.

The company said it will pursue further acquisitions to achieve wider distribution and an increased product range.