Consumer Credit in Ireland 2006

SUMMARY

Overview

Introduction

Ireland has a dynamic consumer credit market and the report Consumer Credit in Ireland 2006 looks at the reasons behind the strong growth seen in the market. Market size, trend analysis, market forecasts, competitor market shares and key regulatory and competitor developments in the market are all discussed.

Scope

• Covers the consumer credit market (not including any loans secured on property)
• Provides market sizing data in terms of gross advances and balances outstanding
• Provides competitor market share for the top five players in terms of balances outstanding; a short profile of the top players is also provided
• Provides competitor market share for the top five credit card lenders in terms of balances outstanding

Report Highlights

The Irish consumer credit market has expanded rapidly over the last few years. The reasons for this growth are that the Irish have had an increasing appetite for credit. This has been brought about by the Irish economy performing extremely well over recent years and the level of disposable income rising.

Credit cards were originally used as a convenient means for high-income consumers to settle retail transactions without the having to carry cash. Over time, credit card usage has expanded significantly due to growing affluence in Ireland and technological developments that have led to an increased emphasis on electronic forms of payment.

The Irish financial services sector is viewed by foreign players as a very attractive market, despite its small size. A strong economy and the relative immaturity of the sector mean that profit margins and growth potential are high. Foreign banks have entered the Irish banking market in recent years by setting up subsidiaries or by acquisition.

Reasons to Purchase

• Learn how the Irish consumer credit market has developed over the last five years
• Understand the recent developments in the market in terms of regulation, competition and product innovations
• Find out Datamonitor's opinion on the future performance of the Irish consumer credit market over the next five years and its future prospects

TABLE OF CONTENTS

• OVERVIEW
  • Market Size
  • Future Growth Indicators
  • Key market players
• CHAPTER 1 INTRODUCTION
  • What is this report about?
  • Scope of the report
  • Structure of report
• CHAPTER 2 MARKET CONTEXT
  • Country overview
    • Economy
      • GDP
      • Sectoral composition of the economy
      • Inflation
      • Distribution of income (GINI Coefficient)
      • Unemployment
  • Demographics
    • Market structure
  • Commercial banks
  • Building societies
    • Market data
  • Total consumer credit
    • Gross advances
    • Balances outstanding
    • Consumer credit balances outstanding as a proportion of total retail lending
    • Consumer credit balances as a percentage of GDP
    • Consumer credit per capita
  • Consumer credit product statistics
    • Consumer credit balances outstanding by product
  • Regulatory environment
    • Industry regulators
      • Central Bank and Financial Services Authority of Ireland (CBFSAI)
  • Industry associations
    • Irish Bankers' Federation (IBF)
    • Irish Finance Houses Association (IFA)
  • Other noteworthy organizations
    • Irish Bank Officials Association (IBOA)
  • Credit bureaux
  • Regulatory issues
    • European consumer credit directive
    • New consumer protection legislation (CP10) is due to come into force in mid-2006
    • There is a de facto cap of 200 per cent on consumer credit
    • Credit advertising in Ireland
• CHAPTER 3 COMPETITOR AND PRODUCT OVERVIEW
  • Top five consumer credit lenders
    • Market share by balances outstanding
  • Profiles of the top five consumer credit lenders
    • AIB
    • Bank of Ireland
    • Permanent TSB
    • RBS (First Active and Ulster Bank)
    • GE Consumer Finance
  • Top five credit card lenders
    • Market share by balances outstanding
  • Competitor developments
    • Merger and acquisition activities in the Irish banking market
    • Foreign players are attracted to the Irish banking sector
      • HBOS has entered the Irish market
  • Product analysis
    • Typical product characteristics
      • Personal loans
      • POS motor finance
      • Overdrafts
      • Credit cards
      • There are no annual fees on credit cards, but there is stamp duty
  • Product innovation
    • AIB's "be" credit card varies the APR according to how much consumers spend
• CHAPTER 4 FORECASTING THE CONSUMER CREDIT MARKET IN IRELAND
  • Forecasting gross advances
    • Gross advances in the Irish consumer credit market will reach €13.3 billion in 2010
    • A number of factors will drive this growth
  • Future prospects
    • Strengths
    • Weaknesses
    • Opportunities
    • Threats
• CHAPTER 5 APPENDIX
  • Supplementary data
  • Definitions
  • Forecasting methodology
  • Research methodology
  • Relevant readings
  • Datamonitor's custom research capabilities
  • Retail Banking Team contact details
  • List of Tables
    • Table 1: GDP per capita for selected European countries, 2005
    • Table 2: The inflation rate in Ireland fell from a peak of 4.7 per cent in 2002 to 2.2 per cent in 2005, 2001- 2005
    • Table 3: GINI Coefficient for selected European countries
    • Table 4: Consumer credit balances outstanding compared to GDP of selected European countries, 2005
    • Table 5: Consumer credit balances outstanding per capita of selected European countries, 2005
    • Table 6: Recent mergers, acquisitions and demutualizations among domestic players in the Irish banking sector, 1991-2005
    • Table 7: A number of foreign players have entered the Irish banking sector, 1997-2006
    • Table 8: Typical APRs for unsecured personal loans in the Irish market, 2006
    • Table 9: Typical APRs for auto loans in the Irish market, 2006
    • Table 10: Barclays offers the lowest credit card APR in the Irish market, April 2006
    • Table 11: Forecast of consumer credit gross advances in the Irish market, 2004-2010f
    • Table 12: Population numbers and demographic splits in Ireland and other major European countries, 2005
    • Table 13: The percentage of people over the age of 20 in the major European countries, 2005
    • Table 14: Unemployment rate in Ireland, 2001-2005
    • Table 15: Consumer credit gross advances in Ireland, 2001-2005
    • Table 16: Consumer credit balances outstanding in Ireland, 2001-2005
    • Table 17: Consumer credit as a proportion of total retail lending in Ireland, 2001-2005
    • Table 18: Market shares of consumer credit balances outstanding by product in Ireland, 2004
    • Table 19: Market share of total consumer credit balances outstanding for the top five Irish consumer credit providers, 2004
    • Table 20: Market shares of credit card balances outstanding of the top five Irish credit card providers, 2004
  • List of Figures
    • Figure 1: Consumer credit gross advances reached a peak in 2005, 2003 to 2005e
    • Figure 2: Gross advances in the Irish consumer credit market will grow at a CAGR of 7.2 per cent to reach €13.3 billion in 2010, 2003-2010f
    • Figure 3: Bank of Ireland is the leading consumer credit provider in Ireland, 2004
    • Figure 4: Key statistics for the Irish consumer credit market, 2005
    • Figure 5: Ireland has the smallest economy among the sample of European countries shown, 2005
    • Figure 6: Services and agricultural sectors are the major contributors to Ireland's GDP, 2002
    • Figure 7: The rate unemployment in Ireland is low when compare to the Western European average, 1998-2005
    • Figure 8: Ireland has one of the smallest populations in Europe, 2005
    • Figure 9: Consumer credit gross advances reached a peak in 2005, 2003 to 2005e
    • Figure 10: Consumer credit balances outstanding have grown at a CAGR of 18.5 per cent over the past five years, 2001 to 2005
    • Figure 11: Consumer credit has not been growing as fast as mortgage lending in Ireland, 2001-2005
    • Figure 12: In terms of balances outstanding personal loans are the leading consumer credit product in Ireland, 2004
    • Figure 13: Regulatory overview of Ireland, 2006
    • Figure 14: Bank of Ireland is the leading consumer credit provider in Ireland, 2004
    • Figure 15: Allied Irish Bank is the leading credit card lender in Ireland, 2004
    • Figure 16: Gross advances in the Irish consumer credit market will grow at a CAGR of 7.2 per cent to reach €13.3 billion in 2010, 2003-2010f
    • Figure 17 Datamonitor's core consulting capabilities