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Credit lender NewDay posts profits up 28% as “no discernible change” in consumer spending

Weathering the storm.

a person in a green jacket

John Lewis.

Strong consumer lending helped drive NewDay to record underlying profit before tax of £97m in the first six months of 2022, up 28 per cent year-on-year.

NewDay operates its own credit cards like Bip and also white labels its technology for companies like John Lewis and The Hut Group.

Overall the company added 427,000 new customer accounts in the period ending 30 June, up from the 401,000 it added in H1 2021.

Meanwhile, total customer spending on its cards rose by 38 per cent to £3.6bn, up from £2.6bn last year, and an impressive increase given the current cost of living crisis.

In fact, the lender reported that it had seen “no discernible change in customer spend patterns as a result of current macro-economic climate since [the] beginning of the year.”

Looking ahead NewDay has a series of client wins coming up with should further bolster its numbers, including John Lewis launching this month, The Hut Group commencing in Q3 and another “fast-growing online retailer” expected to start in H1 2023.

“NewDay has maintained strong momentum in the first half of this year and continues to deliver record profitability and sustainable growth,” said NewDay CEO John Hourican.

“These results are evidence of NewDay’s resilience and its ability to navigate difficult market environments. Our data-intensive underwriting models mean we continually assess affordability implications for our customers, in line with our focus on responsible lending.”

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