Belfast Telegraph

Company Report: N.I.I.B Group Ltd


John Simpson

By John Simpson

The NIIB group is a wholly owned subsidiary of the Bank of Ireland which is registered in Northern Ireland. The business provides instalment credit as hire purchase or loans, leasing finance and term loans for consumer and commercial customers.

Much of the business is through motor dealers and finance intermediaries.

The results for this business are heavily influenced by a combination of the growth in the size and value of the loans made, the rate of interest earned and, to a degree, the value of any impairment losses on financial instruments taken into the accounts.

The published results show a significant year-on-year increase in the value of loans outstanding, which reached £1.8bn in December 2018 - an annual increase of 23%.

Net impairment losses in 2018 were £3.4m - an increase from £1.4m a year earlier.

Operating profit fell in 2017, compared to 2016, but has stabilised at over £25m in 2018. Pre-tax profits, after allowance for impairments, fell by 7% in 2018.

For the shareholder, the Bank of Ireland, each year there have been dividend payments.

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These were £20m in each year 2016 and 2017 and £30m in 2018.

The business of NIIB Group was enhanced in late 2017 when Marshall Leasing was acquired.

This is reported as providing the company with a "full asset finance and rental product portfolio".

The outlook for the business is described as "particularly strong".

The balance sheet value of shareholders' capital at the end of 2018 was £22.7m.

This was a fall of 39% on the previous year.

Belfast Telegraph