Close Brothers Motor Finance saw little growth in their loan book for motor finance, with an increase of just 0.8% year-on-year to £1.72bn in January 2017, according to its preliminary half year results.
The average loan size of a motor finance product at Close Brothers as of 31 January 2017 was £6,000, with a typical loan to value ratio of between 75% and 85%, and maturity of 2-4 years.
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Close Brothers’ income from banking rose 10% year-on-year in 2017 to £274m, and achieved a 13% increase in adjusted operating profit to £122.7bn over the same period.
Net return on its loan book was 3.7%, almost unchanged from the 3.6% realised the year before, and return on equity rose slightly to 23% from 25%, for the same period.
Across the organisation, adjusted operating profit increased by 21% to £134.2m year-on-year as of 31 January 2017. Retail finance, which includes motor finance, saw a 3% increase in profit over the same period, and 2.4% growth of its loan book over the six months to the end of January 2017.
Close Brothers claimed that they maintained a disciplined approach to lending, and that the UK motor finance market remained competitive.
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By GlobalDataClose Brothers Motor Finance was named Bank Owned Independent Finance Provider of the Year at the Motor Finance Awards in Frankfurt last week.
