Provident Financial boosted by growth at Vanquis

Provident said it had raised its total dividend per share by more than 10 per cent to 85 pence and that it had made a strong start to the first two months of 2014.

Vanquis, which lends small amounts and helps some customers rebuild their credit ratings, saw its customer base grow by more than a fifth, with pre-tax profit jumping almost 60 per cent to £113.7m.

Peter Crook, the chief executive, said: “I am very pleased to announce adjusted earnings per share growth of 11.6 per cent in 2013 and a 10.1 per cent increase in the dividend for the year which is fully supported by strong capital generation and a very robust funding and liquidity position. Vanquis Bank has produced another excellent performance with UK profits up 60 per cent. Credit standards have remained tight and the business continues to generate strong customer growth and margins through developing the under-served non-standard credit card market.

“Good progress is being made in repositioning the home credit business as a leaner, better-quality, more modern, high-returns business whilst the Satsuma online instalment lending product has made an encouraging start following its launch in November 2013. The group has made a good start in the first two months of 2014. Vanquis Bank has continued to trade strongly and the home credit business is seeing a consistent improvement in credit quality and collections performance.”