DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
ANALYSIS 2
2005 saw a subdued performance from many lenders 2
Most lenders saw a rise in balances outstanding over 2005 2
Meanwhile, the five largest banking groups strengthened their market share over 2005 in terms of gross advances 5
Moreover, 2006 was another difficult year for personal lending 7
Personal loans also experienced a tough year 7
Indeed, most lenders experienced a difficult H1 2006 7
Not all players grew their balances over the half year 7
Moreover, many lenders saw a drop in new lending volumes 10
Unsurprisingly, lenders are feeling a number of competitive pressures 10
Competition is as tough as ever 10
The top competitors are spending more on advertising in terms of share 11
Lenders are having to look at other ways to compete successfully 13
Differentiation is key 13
But ultimately, the structure of pricing will have to change in the long-run 14
Moreover, bad debt continues to be a challenge when looking to beat the competition 14
Bad debt remains an issue for lenders 14
Such a situation has impacted upon lenders' competitive strategies and results 16
APPENDIX 17
Supplementary data 17
Definitions 18
Balances outstanding 18
CAGR 18
CCJ 19
Consumer credit 19
Gross advances 19
Methodology 19
Further reading 19
European consumer credit reports 19
UK consumer credit reports 20
UK consumer credit briefings 20
Relevant links 20
Ask the analyst 21
Datamonitor consulting 21
Disclaimer 21
List of Tables
Table 1: Unsecured personal loan balances outstanding and market share by group, 2004-2005 4
Table 2: Unsecured personal loan gross advances and market share by group, 2004-2005 6
Table 3: Unsecured personal loan balances outstanding and market share by group, H2 2005-H1 2006 9
Table 4: Advertising personal loan spend by the leading competitors, 2005-2006 12
Table 5: Half-year growth and market share in terms of balances outstanding by group, H2 2005-H1 2006 17
Table 6: Debt write-offs for unsecured lending (excluding credit cards), March 2002-December 2006 18
List of Figures
Figure 1: Barclays Bank and Northern Rock were the market's biggest winners over 2005 in terms of balances outstanding, 2004-2005 3
Figure 2: The top five lenders gained share over 2005 in terms of gross advances, 2004-2005 5
Figure 3: The first half of 2006 was tough on a large number of lenders, even in terms of balances outstanding, H2 2005-H1 2006 8
Figure 4: Debt write-offs on unsecured lending (except credit cards) has continued to rise, March 2002-December 2006 15