Subprime lender Provident makes "good start" after robust 2016

Bradford subprime lender Provident Financial has enjoyed a strong year despite its post-Brexit slump.

Statutory profit before tax up 25.7% to £343.9m, up from £273.6m in 2015 and basic earnings per share up 19.8% to 181.8p.

Provident operates through its brands Satsuma, glo, Vanquis Bank and Provident Home Credit.

Provident said its performance was down to strong growth in profits at Vanquis Bank and Moneybarn and an improved profit performance in CCD following a reduction in the start-up losses associated with Satsuma.

Vanquis reported profits up 11.3%.

Peter Crook, chief executive, commented: “I am delighted to announce adjusted earnings per share growth of 9.2% in 2016 and a 12.1% increase in the dividend for the year, supported by strong capital generation and a very robust funding position.

“The group has made a good start to 2017. Vanquis Bank and Moneybarn have continued to trade very well and the home credit business has produced a sound collections performance.”

Provident Financial is one of Yorkshire’s two FTSE 100 companies. Its share price fell by a quarter in the wake of the EU referendum, but has since recovered.

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