The consumer auto financing arm of Lloyds TSB, Black Horse Motor
Finance, has “achieved its H1 objectives”, said business
development manager Nigel Williams.

The unit sits within Lloyds TSB’s Asset Finance division, which
grew its pre-tax profits for the six months to June 30 2008 by 52
per cent, to £35m (half-year to June 30 2007: £23m). Black Horse’s
results were not reported separately.

Williams said Black Horse was “pleased” with the progress it
made during H1, with special emphasis on success achieved by its
Rate for Risk product, which charges differing rates to
point-of-sale finance customers, depending on their credit rating
and risk profile.

“Rate for Risk is delivering significant amounts of new business
at much improved margins,” Williams said.

“Other financial institutions [other than motor financiers] base
their prices on exactly the same criteria, and if you do not follow
suit, you are not able to write business, or writing it at the
wrong price. Neither option is very palatable,” he concluded.

Motor Finance Issue: 45 – July 08
Published for the web: August 1 08 16:40