Northridge Finance (Northridge) has announced increases in net income and pre-tax profit for 2021.
Northridge, a wholly owned subsidiary of Bank of Ireland (UK) plc, has reported profit before taxation of £52 million for the twelve months ended 21 December 2021, up from £11 million in 2020.
Despite lending to customers falling by nearly £200 million for the year, total operating income increased from £52 million to £62 million, due mainly to a dividend of £8 million received from Marshall Leasing, a business which was successfully acquired by Northridge in 2017.
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As a result of this strong performance, Northridge was able to pay a dividend of £40 million to Bank of Ireland (UK) plc, with Shareholders Funds increasing from £34 million to £43 million.
Commenting on the findings, James McGee, Managing Director, Northridge Finance said: “This was a strong performance against a difficult background following the Covid-19 pandemic. We have continued to invest in significant digital improvements to the automation of our lending decisions and the use of e-sign documentation, both in the showroom and remotely, and these have been positively welcomed in the motor dealer market. We have also introduced new products, such as a PCP product for used electric vehicles in which aims to make used electric vehicles more affordable and grow the ‘green’ used car market.”
He added: “Northridge remains a strong, dynamic and partner driven business with innovation and an excellent reputation for service at the heart of its future and our focus will be on continuing to improve service and investing in new technology so we can serve our customers brilliantly.”
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Northridge Finance was also awarded the title of “Best Independent Lender (Bank Owned)” at the 2022 Annual Car Finance Awards.
It is the third time since the awards were established seven years ago that Northridge has won the award in recognition of the exemplary support the business gives to the UK’s car dealer network. It also recognises Northridge’s high dealer satisfaction scores, service improvements and high levels of colleague engagement.
Source: Written from press release.
