MCB Finance Group (AIM: MCRB) expects to be EBT (earnings before tax) profitable in the second half after performance improved “materially” from the first half of the year.
However, the group said that due to the pre-tax loss recorded in the first half the full year results will likely show an EBT loss.
The changes in the credit criteria implemented during the year led to an improvement in credit performance with the performance of more recent lending pools being back to the levels seen in 2008 in spite of weak economic conditions in all markets. The reorganization of collection processes have also reaped benefits, resulting in better recoveries.
As collection, reorganization and credit scoring capabilities show further improvement, the group is expecting to gradually increase lending volumes.
“In response to unprecedented market conditions we have had to take a number of measures which are achieving the intended results. While continuing to take a cautious approach to risk, we look forward to achieving increased lending volumes followed by improvement in the Group's financial performance,” said Chief Executive of MCB Group Rami Ryhänen.
The group will announce its full year results in March 2010.