Non-bank lenders are beating the market

AMID weak consumer sentiment and a stagnant market for loans, it may come as a surprise that investors are placing bets on an earnings recovery for non-bank lenders. Listed non-bank lenders have outperformed the broader market this year.

At the same time, valuations for these companies have become more attractive as they may no longer need to set aside hefty provisions to cover potential bad loans, say analysts.