Motor group AA says Bank of Ireland JV ‘working well’

Group reports earnings slightly ahead of analyst forecasts

UK motoring group AA started a financial services partnership with Bank of Ireland back in 2015.

UK motoring group AA started a financial services partnership with Bank of Ireland back in 2015.

 

British motoring group AA said Tuesday that its partnership with Bank of Ireland, with whom it commenced a financial services partnership in 2015, is “working well”.

At the end of July 2017, it said it “on-boarded” about 131,000 financial services customers across its credit cards, personal loans and savings portfolio, representing a balance sheet size of about £250 million, match funded by AA originated deposits.

AA’s core profit was steady in the first half of its financial year, the firm said on Tuesday, as it announced that acting chief executive Simon Breakwell is to take on the role permanently.

The company, which provides roadside recovery and motor insurance services, just beat analyst expectations for earnings before interest, tax, depreciation and amortisation (Ebitda), which were £193 million for the six months to the end of July, compared with £192 million a year ago.

Mr Breakwell said he was reviewing what the company needs to deliver its potential.

The results are the first since AA issued a profit warning and dismissed its executive chairman in August, since when its shares have fallen by 30 per cent.

The firm reported growth in its insurance broking and underwriting businesses and membership base, and a 1 percent rise in trading revenue to £471 million.

It maintained its interim dividend at 3.6 pence per share. – Reuters