Finance & Leasing Association11 November 2016
New figures released today by 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 |
Note to editors:
- FLA members in the consumer finance sector include banks, credit card providers, store card providers, second-charge mortgage lenders, motor finance providers, personal loan and instalment credit providers.
- In 2015, FLA members provided £110 billion of new finance to UK businesses and households. £81 billion of this was in the form of consumer credit representing almost a third of total new consumer credit written in the UK in 2015.
