Lloyds Banking Group published its half year financial results to 30 June 2019, revealing a 6.4% increase in motor finance customer loans and advances to £15.9bn.
The banking group said the portfolio continues to benefit from a prudent approach to residual values at origination and provisions throughout the loan lifecycle.
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Expected credit losses (ECL) allowances for the bank include residual value provisions which have increased from £99m on 31 December 2018 to £179m on 30 June 2019. Lloyds attributes this to an anticipated increase in residual value deficits following weakening prices in the used car market, a change in policy relating to voluntary terminations and book growth.
Lloyds pointed to the roll-out of Black Horse Finance Online, a point of sale technology platform to around 4,000 motor retailers, which contributed to the reported growth.
In November last year, Lloyds’ motoring businesses, Black Horse and Lex Autolease, merged to be run under a single combined leadership structure.
Richard Jones, managing director of Black Horse, said: “This is a fantastic opportunity to lead Lex Autolease and Black Horse forward through an exciting period of change in our markets. The success of both businesses is founded on the expertise and the efforts of our colleagues, delivering for our customers through successful partnerships, relationships and stakeholder engagement.
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By GlobalData“The automotive industry is going through a period of transformation, and we have an important role to play in helping fleets and individual drivers to get the right vehicle, for the right job with the financial support that best meets their needs.”
