Amigo Loans swings to half-yearly loss

This figure was heavily impacted by the 72% year-on-year drop in revenues – going from £56.5m to £15.8m, while the firm’s net loan book also decreased, going down by 64% from £224.1m to £80.6m. The guarantor lender says this change is due to both the ongoing run off of the legacy book and the fact there has been no new lending during this period. 

The complaints provision, meanwhile, dropped by 44.4%, going from £344.3m to £191.4m, this provision has increased from the full year number of £179.8m as assumptions for both the volume of claims under the scheme and the estimated uphold rate, have been revised higher in line with observed claims. This increase substantially accounts for the income statement charge of £11.3m.  

Reflecting on these results, Amigo Loans’ chief executive Danny Malone said: “Amigo’s recovery continues to make good progress. We recently started a pilot of our new RewardRate product and meetings with potential investors in relation to a capital raise are now also underway.  

“The last date for making claims under the Scheme was 26 November 2022. The indication is that the volume of claims is 25% ahead of previous expectations.

“Under the terms of our scheme of arrangement, compensation pay-outs will begin next year to customers who are owed redress. It has been a long process of renewal but I’m proud of the journey we have been on. We’ve built a better company with the right culture and strong underwriting standards. We’re now well positioned to support people through this cost-of-living crisis with responsible lending.”