Provident upbeat about third quarter

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CREDIT lender Provident Financial said the group performed well through the third quarter of the year with its three businesses all performing well.

The Bradford-based firm said credit quality in all three businesses is very sound and the group’s funding position is strong, leaving it well positioned to deliver further good quality growth for 2014 as a whole.

Vanquis Bank generated further strong growth and margins through the third quarter of the year with customer numbers rising 17 per cent and average receivables growing around 32 per cent, against unchanged credit standards.

The pilot credit card operation in Poland continues and the rate of investment in the third quarter has been consistent with that reported at the interim results and is expected to continue at a similar level through the remainder of the year.

Meanwhile, it said the consumer credit division continues to make ‘excellent’ progress in repositioning the home credit business as a leaner, better quality business focused on returns.

It said trading of its recently acquired vehicle finance group Moneybarn was in line with internal plans and good progress has been made in integrating the business within the group’s financial reporting and governance procedures.

Chief executive Peter Crook said: “I am pleased to report that the group has performed well through the third quarter of the year. Credit quality in all of our businesses is good and the group is well positioned as it enters the important fourth quarter trading period.

“The group’s funding position remains strong and the recent acquisition of Moneybarn, together with our organic growth initiatives, represent exciting opportunities to augment the group’s medium-term growth prospects.”

Owen Jones, an analyst at Espirito Santo Investment Bank, said: “There is now a lot to talk about with regards to the outlook for the company. Gone are the days of it just being a bank (Vanquis) and a home collected credit organisation. Q3 trading is reported to be good, credit quality remains high and funding ample.”