Member Article

Bradford sub prime lender Provident report modest growth

Bradford-based Provident Financial plc has reported a modest increase in full year revenue of 9.9% before tax.

This was largely due to the strong performance of Vanquis Bank, a part of the group, which has reported 60% increase in profits.They have also reported an 11.6% growth of adjusted earnings per share.

Provident Financial plc is a provider of credit cards to non-standard consumers in the UK and a provider of home credit in the UK and Ireland.

The group serves over 2.6 million customers and its operations consist of Vanquis Bank and the Consumer Credit Division (CCD).

Peter Crook, chief executive, commented: “I am very pleased to announce adjusted earnings per share growth of 11.6% in 2013 and a 10.1% increase in the dividend for the year which is fully supported by strong capital generation and a very robust funding and liquidity position.

“Vanquis Bank has produced another excellent performance with UK profits up 60%.

“Credit standards have remained tight and the business continues to generate strong customer growth and margins through developing the under-served non-standard credit card market.

“Good progress is being made in repositioning the home credit business as a leaner, better-quality, more modern, high-returns business whilst the Satsuma online instalment lending product has made an encouraging start following its launch in November 2013.

“The group has made a good start in the first two months of 2014. Vanquis Bank has continued to trade strongly and the home credit business is seeing a consistent improvement in credit quality and collections performance.”

This was posted in Bdaily's Members' News section by Clare Burnett .