Provident Financial customer numbers increase as hostile takeover fight continues

Subprime lender Provident Financial saw customer numbers grow in the first three months of its trading year, with a "stable" increase to impairments over at its Vanquis unit.

Provident reported a 13% increase in customer numbers at Vanquis on Friday, while new business volumes at Moneybarn grew 40% and home credit customer volumes rose 27%.

The FTSE 250 company told investors it had made progress on its historic regulatory problems, completing a payment option plan refund programme at Vanquis during the quarter. An FCA investigation into Moneybarn was also said to be drawing to a close.

Provident, which has been fighting off a hostile takeover bid from smaller rival Non-Standard Finance, noted that the rate of increase in delinquency at Vanquis was consistent with the first quarter of 2018, while default rates and arrears levels at Moneybarn remained flat.

Chief executive Malcolm Le May said: "I am pleased with the group's performance during the first three months of the year.

"We have diligently built on the stronger foundations established over the past 18 months and have delivered strong customer growth and new business volumes, with stable delinquency trends and overall results in line with management's plans for 2019."

Provident also said it expects to be hit with exceptional costs of around £17m to £22m due to NSF's offer and further costs of roughly £10m due to the voluntary redundancy programme in its consumer credit division.

At 1215 BST, the shares were up 1.1% at 518.09p.