Provident Financial says impact from Brexit will be minimal this year

LENDER Provident Financial said rising unemployment and inflation in the wake of Britain's decision to leave the European Union is unlikely to have a significant impact in 2017 as it reported a 14 per cent rise in full-year pre-tax profit.
Peter Crook  of Provident FinancialPeter Crook  of Provident Financial
Peter Crook of Provident Financial

The company, which provides credit cards and loans to 2.4 million customers who are unable to meet the lending criteria of mainstream banks, said pretax profit rose 14.1 per cent to £334.1m in the year ended December 31, 2016 from £292.9m the year a year earlier.

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

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“Vanquis Bank has reported profits up 11.3 per cent. Growth is being delivered against continued tight credit standards and I’m particularly pleased with the momentum of new business being generated through a reinvigoration of the credit card proposition and its distribution by the new leadership team.”

Mr Crook said that “Moneybarn has again performed extremely well”.

He added: “Since its acquisition in August 2014, the business has more than doubled in size and maintained its margins through a period of significant investment.

“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.”