Provident Financial posts rise in profit, hikes dividend

Lender Provident Financial posted a rise in profit and lifted its dividend following a strong performance from Vanquis Bank.

For the year to 31 December, statutory pre-tax profit was up 21.8% to £273.6m, with adjusted earnings per share up to 162.6p from 132.6p.

Adjusted pre-tax profit, meanwhile, was up 25% to £292.9m, reflecting strong growth and margins in Vanquis Bank and a full-year contribution from Moneybarn, which was acquired in August 2014.

Profit at Vanquis Bank rose to £185.5m from £151m, with the customer acquisition programme delivering record new customer bookings of 433,000.

Adjusted pre-tax profit in the consumer credit division was up 1.4% to £105.4m while profit at vehicle finance provider Moneybarn was 42% higher than 2014 at £21.3m.

The company hiked its total dividend per share to 120.1p from 98p the previous year.

Chief executive Peter Crook said: "I am delighted to announce adjusted earnings per share growth of 22.6% in 2015 and a 22.6% increase in the dividend for the year, reflecting strong capital generation and a very robust funding position.

“Vanquis Bank produced another excellent set of results which saw UK profits up 22.8%. With credit standards unchanged, the business has continued to generate strong growth and margins through developing the underserved non-standard credit card market.”