Business

Bank of Ireland's car finance firm Northridge records £52m pre-tax profit

The £52 million pre-tax profit recorded by Northridge Finance was almost five times the £11m it declared in 2020.

BANK of Ireland's motor finance subsidiary Northridge became one of Northern Ireland's most profitable businesses in 2021.

Northridge Finance said it recorded a pre-tax profit of £52 million for the 12 months to December 31 2021, almost five times the £11m it declared in 2020.

The massive surge in profit came despite lending to customers falling by nearly £200m in 2021.

Northridge said total operating income increased by £10m to £62m in 2021.

The finance firm said the increase in operating income was mainly due to a £8m dividend from Marshall Leasing. Northridge Finance acquired the Cambridgeshire firm in 2017.

The exceptionally profitable year resulted in a £40m dividend being paid to Bank of Ireland UK.

Northridge Finance managing director, James McGee described it as “a strong performance against a difficult background following the Covid-19 pandemic”.

He said: "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.

"With more new products and digital enhancements planned, including intermediary proposal and customer self-serve capabilities, 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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