Provident Financial confident despite economic outlook

HOME credit business Provident Financial said it was seeing sales ahead of last year and was confident the Government’s spending review would have a limited impact on the firm today.

The Bradford-based business, which specialises in loans to people who typically borrow low amounts and pay it back in weekly instalments, saw year-on-year growth in customer numbers at its Home Credit division of between 4% and 5% while Vanquis Bank saw “a strong flow of new applications”.

Chief executive Peter Crook said: “I am encouraged by recent business performance as we enter the peak trading period.

“We expect the direct impact of the Government’s spending review on the group’s customer base to be modest but continued tight underwriting and close attention to margins and costs will remain in place over the coming months until there is evidence of a sustained economic recovery.”

The firm said the Government’s move to replace the current welfare system with a single universal credit over the next 10 years would not increase risk to the company because of the short duration of the Home Credit loan book.

However, the company intends to maintain tight controls on credit decisions while the economic outlook remains uncertain.