Experian warns of crisis for consumers
The crisis in the financial markets is turning into a crisis for consumers as mortgage lending and other loans dry up, credit checking giant Experian today warned today.
Tough for the man in the street: Robert believes the key is how the consumer feels
Chief executive Don Robert said that what started as a major headache for investment banks and other financial services firms on Wall Street and in the City is now spreading to the real economy and hitting consumers.
Experian, which has information on 40m consumers in the UK and 220m in the US, has felt the pain because banks and other lenders are calling for fewer credit checks as they issue fewer loans.
It today reported a better-than-expected 15% rise in full-year profits but warned revenues in the first quarter of the new financial year will be 'flat to slightly down'.
Robert said: 'We still see a lot of uncertainty in the US and UK markets and as the focus shifts away from Wall Street and on to Main Street it turns to the man on the street, to the consumer, and how they are feeling.
'We really see difficult times for the US consumer and they are exhibiting a lot of caution in how they apply for credit and how they spend money. It is not a time of exuberant spending.
'The UK seems to feel a bit more stable but the banks are still very cautious on how they are approving loans and extending credit. We are in a better shape than in the UK for the time being but it would not surprise me to see things weaken in the UK.'
The warning came as Experian reported profits of $945m (£482m) for the year to the end of March on revenues up from $3.49bn to $4.13bn, boosted by business across Asia and in eastern Europe. Organic revenue growth was 4%.
Despite a difficult first quarter this year, Robert said he was 'confident on the outlook'.
The firm has cut hundreds of jobs from its 8000 strong workforce around the world and today paved the way for more as it raised its annual cost savings target from $80m to $110m.
Most watched Money videos
- How to invest for income and growth: SAINTS' James Dow
- Mail Online takes a tour of Gatwick's modern EV charging station
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- The new Volkswagen Passat - a long range PHEV that's only available as an estate
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- BMW meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- Land Rover unveil newest all-electric Range Rover SUV
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- Mercedes has finally unveiled its new electric G-Class
- Mini celebrates the release of brand new all-electric car Mini Aceman
- MailOnline asks Lexie Limitless 5 quick fire EV road trip questions
- My neighbour has started keeping bees. Is there anything...
- America's latest inflation figures are a gift for Andrew...
- The £60bn foreign takeover frenzy: Royal Mail just the...
- British tech firm Raspberry Pi eyes £500m London float in...
- Compass Group ups guidance thanks to major sporting events
- Experian shares rise sharply as credit data giant lifts...
- Leapmotor is the next new Chinese car brand coming to...
- BUSINESS LIVE: Burberry hit by luxury slowdown; Imperial...
- The age you can access work and private pensions will...
- MARKET REPORT: Bumper blue chips send Footsie to another...
- Golden Virginia owner Imperial Brands bolstered by higher...
- Anglo to sell coking coal arm for £4.75bn in bid to...
- Trading blows over Israel: How global commerce is being...
- David Cameron's mother-in-Law quits luxury furniture firm...
- Tech firm Raspberry Pi confirms plans to IPO in London
- Tui Group losses narrow thanks to record second quarter
- Burberry profits plummet amid luxury slowdown and China...
- Czech billionaire Daniel Kretinsky ups bid for Royal Mail...