Sub-prime lender Kensington Group has more than doubled its new lending in the first half of this year. Pre-tax profits for the six months to 31 May were up 11% from £13.3m to £14.8m.
The lender’s pipeline for offered new business on 31 May was over £320m. Its average new business loan to value ratio is 77%, with the number of accounts in arrears at 11.8%, down from 13.7% in the first half of last year.
John Maltby, chief executive officer of the Kensington Group, said: ‘Costs are under control and credit quality remains sound, supported by a continuing focus on prudent lending, which includes avoiding concentration in the higher risk areas of the housing market. We are a leading specialist in an attractive and growing specialist market and with a new business offer pipeline that is over 70% higher than a year ago, we are confident of future growth.’
In other results, adverse credit specialist igroup has said June 2003 was its best ever month for new lending, comfortably passing the £300m mark. Jonathan Sadler, sales and marketing director at igroup, said: ‘What makes it especially pleasing is that June was also a record month for new business instructions into the group from our introducer-partners.’