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Car finance firm Northridge reports five-fold increase in pre-tax profits during 2021


NIIB’s James McGee

NIIB’s James McGee

NIIB’s James McGee

Car finance company Northridge, which is owned by Bank of Ireland, increased pre-tax profits five-fold during 2021.

The Belfast-based business said pre-tax profits had soared from £11m to £52m.

Total operating income went from £52m to £62m over the year. The firm said the increase was mainly down to an £8m dividend from Marshall Leasing, which was taken over by Northridge in 2017.

Shareholder funds also grew to £43m from £34m, with Northridge paying a £40m dividend to parent company Bank of Ireland (UK) plc.

Northridge managing director James McGee 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 personal contract purchase (PCP) product for used electric vehicles in which aims to make used electric vehicles more affordable and grow the ‘green’ used car market.

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“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.”

Northridge won the Best Independent Lender (Bank Owned) title at the 2022 Annual Car Finance Awards.