Provident Financial reports 'in-line' third quarter trading

Credit quality at all three of its main units was described as "very sound", with the UK-focused lender confident of its ability to deliver "good" full-year results.

At its main unit, Vanquis Bank, customer numbers and receivables at the end of September were ahead by 7% and 13% year-on-year, respectively, versus 6.5% and 11.7% at June.

Delinquency levels remained favourable over the latest quarter, "reflecting the sound quality of the receivables book and the stable UK employment market", with an annualised risk-adjusted margin still above 32%.

"Good progress continues to be made on developing the pipeline of opportunities to augment the medium-term growth of the business," the non-standard lender said.

Within its DCC arm, demand and customer confidence in home credit were described as still robust, Provident said, with year-on-year receivables growth of 5% at the end of September versus 2.6% at June, leaving it well-positioned heading into the important yer-end trading period.

In parallel, Moneybarn enjoyed a strong flow of new business volumes, with both customer numbers and receivables up by approximately 36% year-on-year at the end of September at 39,000 and £286m, respectively.

The returns being generated by the business were consistent with 2015.

At Satsuma, credit quality was developing satisfactorily in 2016, with a strong flow of further lending established, management reported.

Group funding and liquidity position remained strong and sufficient to fund maturities and projected growth in the business until May 2018.