Franchises now built, profits to follow
NSF has reached the turning point in its strategic development. Having invested heavily in infrastructure, controls and people, it has built a substantial franchise. The pace of investment will now slow, at the same time as payback from historical investment becomes more visible. Lending has been curtailed to match the economic outlook. Despite this, we expect profit growth to accelerate sharply, driven by wider jaws between revenue and costs in the branch business and guarantor loans, efficiency improvements in home collect, and improving credit. NSF looks likely to secure additional lower-cost funding; we expect funding costs to relatively reduce, and the funding mix to improve.
If you'd like to be introduced to the team at Non-Standard Finance, get in touch.Request a meeting