Provident Financial upbeat on full year

City A.M. Reporter
Sub-prime lender Provident Financial said it expected a good set of annual results, helped by growth at its Vanquis Bank and Consumer Credit divisions.

Provident Financial, which lends to people who cannot get credit from mainstream banks, added that it had a strong funding and liquidity position.

"I am pleased to report that the credit quality in both businesses remains extremely sound, fully justifying the group's cautious approach to lending at a time when customers' real incomes are under pressure from inflation and there are risks surrounding the future direction of the employment market," Chief Executive Peter Crook said in a statement.

"The deposit taking programme at Vanquis Bank has got off to an excellent start. Not only does this further diversify and strengthen the group's funding, but it provides the stand-alone financing required by Vanquis Bank in pursuing its attractive medium-term growth opportunity," he added.