Non-Standard Finance takes advantage of Provident struggles to grow loan book

Unsecured consumer lending group Non-Standard Finance reported loan book growth, impairment levels and risk-adjusted margins ahead of expectations on Wednesday.
In its Wednesday trading update, NSF said its net loan book had grown 20% year-on-year to £143.7m, the rate of impairment to revenue had dropped from 19.6% to 17.9% and its risk-adjusted margin increased from 35.7% to 37.3%.
Taking advantage of the disruption to its much larger rival, Provident Financial, NSF’s home credit arm, ‘Loans at Home’, enjoyed rapid growth as net loan books had increased 40% to £38.1m since the end of June, leading the firm to open 20 new offices around the country and recruiting 437 experienced agents from Provident to take its total to 1,002.
The branch-based lending arm, Everyday Loans, opened its twelfth new branch earlier in November, taking its total to 53 across the UK and intended to open a dozen more by the midway point of 2018.
“As we enter the seasonally important Christmas period for our home credit division, we remain confident about the group’s prospects,” management said in the statement.
Loan books at George Banco, the guarantor lending operations that was acquired in August, also increased 33% on the previous year to £43.8m, with the other TrustTwo guarantor lender also performing well.
The group had gross borrowings of £186.5m, a cash balance of £10m and committed but undrawn facilities of £73.5m at the end of October.

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