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The latest figures from the Finance & Leasing Association (FLA) show growth of 7% in consumer finance new business in September, compared with the same month last year. In Q3 2016, new business was also up by 7% compared with the same quarter in 2015.
Credit card and personal loan new business together grew by 8% compared with September 2015, while growth in retail store and online credit new business was flat. New business in the second charge mortgage market grew 4% by value and fell 1% by volume over the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said “Consumer confidence has been relatively robust in recent months, which is reflected by the consumer finance market’s solid performance in the third quarter. New business growth of 10% in the first nine months of 2016 was slightly ahead of the FLA’s single-digit growth expectations for 2016 as a whole.”
Table 1: New consumer credit lending
|
|
Sep 2016 |
% change on prev. year |
3 months to Sep 2016 |
% change on prev. year |
12 months to Sep 2016 |
% change on prev. year |
|
Total FLA consumer finance (£m) |
8,773 |
+7 |
22,371 |
+7 |
86,876 |
+10 |
|
|
|
|
|
|
|
|
|
Data extracts: |
|
|
|
|
|
|
|
Retail store and online credit (£m) |
531 |
0 |
1,522 |
+1 |
6,680 |
+3 |
|
Credit cards & personal loans (£m) |
3,736 |
+8 |
11,118 |
+8 |
44,160 |
+9 |
|
Second charge mortgages (£m) |
77 |
+4 |
223 |
0 |
892 |
+15 |
|
Car finance (£m) |
4,048 |
+9 |
8,319 |
+8 |
31,123 |
+14 |