Kensington Groups has released figures for 2002 showing strong growth.
New business originations up 48% to £1.02bn, compared to £0.69bn in 2001, with record lending of £603m in the second half of the year. Its average loan to value is 78% and less than 1% of new loans were above 90% LTV. The number of new borrowers with County Court Judgements reduced to less than 38% against 41% for the same period last year. Product margins reduced slightly to 3.86%, compared to 4.03% in 2001, but the number of introducers recommending Kensington increased by 20% over last year. The number of accounts in arrears fell to 12.4% of the portfolio from 14.7%, and annualised loan losses in the year fell to below 0.1%.
Kensington successfully securitised £960m in 2002, achieved at a lower initial cost of funds of 0.35% over LIBOR (2001: 0.39%). During 2002 Kensington completed the acquisition of The Mortgage Lender Limited, a direct to consumer distributor of non-conforming mortgages; it increased business through its packager channel partnerships by 30% and increased its business from National Account partnerships by 100%.
John Maltby, CEO of the Kensington Group, says: “Kensington continues to deliver strong, high quality earnings growth underpinned by its prudent approach to specialist risk management. Future demand for Kensington's products will remain high due to the immaturity of its market and the breadth and depth of its distribution. As the leading specialist in this growing market with strong risk management expertise and its lack of exposure to the higher risk segments of the housing market, Kensington is well positioned to continue its record of strong, controlled and profitable growth.”