Provident Financial expects good results for year; credit quality remains high
Non-standard lender Provident Financial (LON:PFG) says it expects 'good' results for the year adding that credit quality in both its businesses remained high.
The company, which lends to people who cannot get mainstream credit, said cautious underwriting and a strong focus on collections had maintained high credit quality.
The firm, which runs a home credit business and issues credit cards through Vanquis Bank, issued a management statement covering July 1 to October 20 this year.
"Sound credit quality leaves the Consumer Credit Division (CCD) well positioned as it enters the peak trading period," it said today.
"Vanquis Bank is continuing to deliver both strong growth and strong margins."
The company concluded: "Credit quality in CCD is very sound as the business approaches the peak trading period.
"Whilst agents and customers are showing a degree of caution at a time when customers' real incomes are under pressure from inflation, current trading is in line with plan.
"The sound quality of the receivables book, strong margins and continued investment by Vanquis Bank in developing its customer base, leave the business well positioned to deliver excellent results for the year."
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