Moneybarn has increased its profits by 44.7% in the first of 2016 compared to the same period in 2015, according to interim results released by parent company Provident Financial Group. The subprime lender saw first half pre-tax adjusted profits of £13.6m in the year to 30 June, up from £9.4m in 2015.
New business volumes also rose, increasing by 42.5% compared to the first half of 2015, reportedly due to an extension of its product offering to include lending up to retail value, and access to the parent group’s funding.
Annualised return on assets remained static, with the half year 2016 results showing 12.9%. The annualised risk adjustment margin hardly changed, decreasing by 0.5% since 2015 to 24.1%.
Provident Financial, which also includes Vanquis Bank and a consumer credit division (CCD), saw first half pre-tax adjusted profits up 17.6% to £148.9m. Annualised return on assets for the group largely stabilised, moving to 15.7% from 15.6% in 2015.
Peter Crook, chief executive at Provident, said: “I am pleased to report that all three businesses have delivered excellent performances through the first half of the year and contributed to the strong increase in adjusted profit,”
“The group is fully funded through to May 2018…[this] provides the foundation for continuing to deliver on the group’s medium-term growth objectives as well as trading soundly through any slowdown that may emerge from the uncertainties currently present in the UK macroeconomic outlook.”
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