Lloyds has reported that Black Horse grew its lending balance 30% year-on-year to over £10bn in the first half of 2016, though a continued focus on lower risk new business.
Black Horse also reduced its processing time for onboarding time for new dealers from 22 days to 6 days over the period.
It added 220,000 new customers across its motor, bike and leisure business in the first half of 2016. This compares with 294,000 for the whole of 2015.
Lloyds classes Black Horse alongside Lex Autolease, credit cards and unsecured personal loans in its consumer finance division, which saw its underlying profit fall 9% year-on-year to £690m. Lloyds said this was due to lower debt sale benefits.
Over the period, Lloyds’ motor finance loans and advances increased by £1.3bn to £10.9bn, including an 18% growth within the Jaguar Land Rover business.
UK Customer assets did increase by 11% compared to the same period in 2015, and 5% since December 2015, with Lloyds crediting Black Horse and Lex Autolease with driving the growth.
The results also revealed that Lex Autolease’s fleet ended H1 2016 25,000 units larger than in H1 2015, a growth of 8%.
It also revealed Lex had simplified the end of contract remarketing operation, which allowed it to reduce the number of operating sites and staff it kept on its books.
Richard Jones, managing mirector at Black Horse said: “The first half of 2016 demonstrated a very strong financial performance, driven by new business growth and significant gains in market share, particularly in the used car space. As the industry continued to grow, we successfully met increased demand for new and used car, bike and leisure finance.
“We’re proud that we continue to support our dealer partners in adopting Consumer Credit reforms, and feel that this is a mutually beneficial way of doing business. However, we are expecting increased challenges in the second half of the year. The regulatory and economic climate is more uncertain, whilst customer digital adoption is accelerating so we must keep pace with this.”
“With this in mind, we will be significantly upgrading our digital capability in the coming months, investing in front-end processes, developing self-serve options and bringing new products to the market that offer dealers and customers increased flexibility. I am confident therefore that despite these increased challenges, we will continue to grow in the second half of the year and into 2017.”