The Profitability of the Consumer Credit Industry: Evidence from Europe

39 Pages Posted: 5 Aug 2010

See all articles by Luisa Anderloni

Luisa Anderloni

University of Milan - DEAS

Daniela Vandone

University of Milan

Date Written: August 4, 2010


The paper focuses on the profitability of the consumer credit industry in Europe. Using consumer credit companies’ financial statement data, we investigate the effect of firm-specific and market-specific factors on the profitability of a sample of French, German, Italian and Spanish consumer credit companies over the period 2005-07. Results highlight that, among firm-level determinants, diversification of products and services within lending to households is the most influential driver of profit. With regards to market-specific factors, the profitability of consumer credit companies is positively affected by the size of the market, and negatively determined by the level of household debt burden.

Keywords: Financial companies, Consumer credit, Profitability, Cross-country

JEL Classification: G21

Suggested Citation

Anderloni, Luisa and Vandone, Daniela, The Profitability of the Consumer Credit Industry: Evidence from Europe (August 4, 2010). Available at SSRN: or

Luisa Anderloni (Contact Author)

University of Milan - DEAS ( email )

Via Conservatorio, 7
Milan, 20122
+390250321546 (Phone)
+390250321505 (Fax)

Daniela Vandone

University of Milan ( email )

Via Festa del Perdono, 7
Milan, 20122

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