Investec makes provision for potential impact of motor finance review

By 2 Min Read

Investec became the latest lender to make provisions for the outcome of the FCA review of the motor finance market.

Investec commenced lending into the UK motor vehicle finance market in June 2015 through its Mann Island Finance subsidiary.

During this period gross core loans in motor finance grew from £11m as of 31 March 2016 to £555m as of 31 March 2021.

In the UK, including Rathbones Group, adjusted operating profit is expected to be 15% higher than the prior year at £377.8m.  Specialist Bank expected to be at least 30% higher than prior year is £303.4m.

In a pre-close statement, it said: “This guidance incorporates a provision for the potential impact of the recently announced Financial Conduct Authority (FCA) review into historical motor finance commission arrangements and sales.

The group continues to monitor developments across the industry and will co-operate with FCA reviews, as and if required.

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