The latest figures released by the Finance and Leasing Association (FLA) have shown that consumer finance new business grew by 10 per cent year-on-year in March compared to March 2016.
The full data for the first quarter of 2017 as a whole showed growth of 6 per cent when compared to the same quarter last year.
New credit card and personal loan business together grew in March by 7%, compared with the same month in the previous year. Retail store and online credit new business increased by 5%, and new business on second charge mortgages grew 8% by value and 15% by volume over the same period.
Head of Research and Chief Economist at the FLA, Geraldine Kilkelly, commented: ‘Consumer finance new business provided by FLA members grew in line with expectations in the first quarter of 2017. We expect modest single-digit growth in new consumer credit in 2017 as a whole.’
Figures also released showed that new business in the point of sale (POS) consumer new car finance market grew 13% by value and 5% by volume in March, compared with the same month in 2016.
Growth over the full first quarter of 2017 was also strong. New business was up 10% by value and 3% by volume, compared with the same quarter in 2016.
The percentage of private new car sales financed by FLA members through the POS was 86.5% in the twelve months to March, unchanged compared with the same period to February.
The POS consumer used car finance market also reported new business growth in March of 17% by value and 11% by volume, while in Q1 overall, new business was up 12% by value and 6% by volume.
Kilkelly also commented on these figures, saying: ‘The first quarter of 2017 saw consumer car finance new business volumes increase in line with the industry?s expectations of single-digit growth for the year overall.
‘The percentage of private new car sales financed by FLA members has remained steady at 86.5% since the beginning of 2017.’