Provident Financial on track for ‘good quality growth’

PROVIDENT Financial today said its Vanquis Bank operation was trading ahead of expectations.

In an interim management statement for the period from July 1 to yesterday, the Bradford-based credit lender said it was on track to report “a good result for the year”.

Chief executive Peter Crook said: “I am pleased to report further strong growth and margins at Vanquis Bank, together with a continuing stable performance from the Consumer Credit Division (CCD) at a time when the pressure on customers’ disposable incomes from cost inflation is not abating.
 
“Credit quality is being reinforced by tight underwriting criteria and, as it enters its peak trading period, the group is on track to deliver good quality growth for 2012.”
 
Provident said (CCD) had traded in line with last year and maintained a “sound” collections performance through the third quarter.

It said Vanquis Bank was continuing to deliver both strong growth and strong margins and is trading ahead of internal plans.
 
The company added: “The group’s funding position remains very robust and the group’s committed debt facilities, together with the retail deposits programme at Vanquis Bank, are sufficient to fund contractual maturities and projected growth in the business until May 2015.”