Profits rise at Provident
PROVIDENT Financial is continuing to benefit from the economic conditions in the UK as it reported a boost in profits and a rise in customer numbers.
The Bradford-based group, which specialises in loans to lower income households and those with poor credit histories, posted a 34% rise in first-half profit and said customer numbers had grown by 7% in its core consumer credit division.
In an interim management statement released by the group for the six months ended 30 June 2008 the group recorded pre-tax profits of £51.3m as sales grew 11% to £324m.
Chief executive Peter Crook said: “I am pleased to report a strong set of half-year results. We have continued to expand customer numbers in both businesses and our responsible approach to lending means that this growth is both sound and profitable.
“Whilst market conditions in the UK non-standard lending market continue to be favourable, we have been responding to the pressure on household incomes from price inflation and a weakening economy. The group’s strong funding position leaves it well placed to continue doing so through the second half of 2008.”
He added that Provident’s decision to be “increasingly cautious” in its approach to granting new credit over the last 12 months had resulted in the group’s businesses delivering high-quality customer and profit growth.
Provident’s customers are served through a network of more than 300 branches, call centres and internet sites making it the largest non-standard lender in the UK.
