Provident Financial grows full year profits on credit card sales

City A.M. Reporter
SUB-PRIME lender Provident Financial posted a 12 per cent rise in full-year profit yesterday, boosted by strong growth at Vanquis Bank which provides credit cards to punters turned down by mainstream banks.

The company also said it was increasing its medium-term customer growth target for Vanquis in the UK.

Provident Financial hopes to have between 1.3m and 1.5m customers at Vanquis in the next few years, an increase of 30 per cent on previous guidance.

It currently has around 899,000 customers.

The company, whose consumer credit division sells small loans door-to-door, reported a pre-tax profit before exceptional items for 2012 of £181.1m, up from £162.1m the previous year.

Its more established consumer credit division made a profit of £125.1m, down two per cent. Vanquis' UK profits rose by 61 per cent to £71.3m, excluding a £3.3m charge from starting up a credit card operation in Poland.

Vanquis offers credit cards to people who have had credit problems or have no credit record.