Provident Financial profit to be in line with expectations

Provident Financial said its profit before tax for the year will be in line with market expectations of £291m.

In a trading statement released Wednesday, the lender said its group results have been bolstered by strong growth from Vanquis Bank, driven by a nearly 10% increase in customers and record bookings of 433,000.

That has led to the bank posting average receivables growth for the year of approximately 19%.

The group’s Consumer Credit Division is also expecting a marginal increase in profit as it transforms to a smaller but leaner business focused on returns.

“Sales in the home credit business through the seasonal peak were marginally above the fourth quarter of last year, notwithstanding the year on year reduction in the customer base, benefitting from the progressive improvement in credit quality and continued modest improvements in demand and customer confidence.”

Moneybarn has also seen strong new business volumes, 69% higher than in 2014, boosted by growth in the fourth quarter growth of 28%.

At the end of the year, customer numbers were up to 31,000 from 22,000, and receivables were close to £220m, up from £151.7m.

“All our businesses have traded well through the final quarter of the year and our funding position remains strong,” said chief executive Peter Crook