Strong performance 
at Provident Financial

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Credit lender Provident Financial is scheduled to report strong interim results today.

Bradford-based Provident’s Vanquis Bank is expected to deliver profits of £22.0m, up from £17.6m last time.

However Leeds-based spin off firm International Personal Finance, which lends to customers in Europe, is expected to see a fall in profits.

Analyst Gary Greenwood at Shore Capital said of Provident: “Overall, we expect another period of strong performance, with adjusted pre-tax profits for the first half of 2012 forecast to grow by 10 per cent to £68.5m.

“For the consumer credit division we expect first half adjusted pre-tax profits of £51.5m.”

IPF’s profits typically see a bias towards the second half of the year as impairments tend to peak in the first quarter after Christmas.

Mr Greenwood is forecasting IPF’s first half adjusted pre-tax profits will be £30.6m, down from £35.7m.

“The year-on-year reduction in profitability is primarily a function of a currency headwind and increased early settlement rebates in Poland and the Czech Republic following regulatory changes, rather than a deterioration in underlying trading,” he said.

Today will be the first time new chief executive Gerard Ryan will get the chance to comment on strategy.

“We anticipate an evolution of the existing strategy rather than a sea change in direction,” said Mr Greenwood.