Cash America 2014 Annual Report Download - page 72

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57
Consumer Loan Loss Provision
The loss provision as a percentage of consumer loan fees increased to 31.7% in 2014 from 29.5% in 2013,
primarily due to the change in the mix in the consumer loan portfolio during 2014. In connection with the
Company’s strategy to de-emphasize its short-term consumer loan lending activities, the total consumer loan
portfolio included a greater proportion of installment loans in 2014 compared to 2013. Short-term loans generally
carry lower loss rates than installment loans, and the decrease in short-term loans led to the overall increase in the
loss rate in 2014. Despite the higher loss rate in 2014 in the consumer loan loss portfolio, the consumer loan loss
provision decreased overall, primarily as a result of the significant decline in the short-term consumer loan balances
in the portfolio during 2014.
The average amount outstanding per consumer loan is calculated as the total amount of combined consumer
loans outstanding as of the end of the period divided by the total number of combined consumer loans outstanding
as of the end of the period. The table below shows the average amount per consumer loan by product for 2014
compared to 2013. The decrease in the average amount of installment loans outstanding from December 31, 2013
to December 31, 2014 was primarily due to the discontinuation during 2014 of one of the Company’s installment
loan products that typically carried higher average balances than other loans in the installment loan portfolio.
Year Ended December 31,
2014 2013
Average amount outstanding per consumer loan (in ones)(a)
Short-term loans $
475
$474
Installment loans $1,442 $2,083
(a) The disclosure regarding the average amount per consumer loan is statistical data that is not included in the Company’s financial
statements.