1st Nov 2016 17:23
(Correcting to clarify headline.)
LONDON (Alliance News) - Non-Standard Finance PLC said Wednesday its trading is "broadly" in line with expectations, with its loan book expanding strongly in the third quarter but costs in its home collected credit line rising faster than planned.
The subprime lender reported that at September 30 the loan book of its Everyday Loans business stood at GBP120.0 million, an 19% increase year on year, which represents 75% of the company's combined loan book. Non-Standard Finance said its new business has an average yield of 56%, up from 51% at the time of its acquisition of Everyday Loans.
On its Loans at Home arm, Non-Standard Finance said the value of its net loan books has increased by 23% to GBP27.5 million over the nine months to September 30. The company noted such strong growth has meant impairment and agent support costs, "higher than planned in the third quarter", but said those costs are now reducing.
Non-Standard Finance said it expects to have around 750 agents lending to approximately 95,000 customers by the year end, with the home collected credit business accounting for 20% of its combined loan book.
The Trusttwo business loan book stood at GBP8.2 million at September 30, and Non-Standard Finance said it expects accelerated growth to start in November.
"Overall, the group's performance is broadly in-line with expectations and as we draw up our budgets for 2017 we remain focused on striking the right balance between growth and profit, continuing our progress towards achieving an overall target annual loan book growth of 20% and a 20% return on assets in each of our operating businesses," said Non-Standard Finance.
Shares in Non-Standard Finance closed down 5.4% at 66.00 pence.
By Adam Clark; [email protected]
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