Provident Bank lifts UK customers 20 per cent

8th May 2014 11:07

- UK bank customers up 20 per cent- Consumer credit customers down 20 per cent- 'On track to deliver good quality growth in 2014'Non-standard lender Vanquis Bank has enjoyed a 'very good' start to the year, as it took advantage of the low marketing activity of competitors, while the repositioned the Consumer Credit Division (CCD) gains traction.At its annual general meeting on Thursday, the bank informed that its UK banking arm grew customer numbers by just under 20% year-on-year to 1.14m, which, along with credit line increases to better-quality customers, supported year-on-year receivables growth of 33%. The pilot Polish banking operation has continued to endure start-up losses at a similar rate to 2013 as it looks to focus on the development, marketing and distribution of its credit proposition. Credit quality remained satisfactory in the country.During April, the Polish business launched a flexible credit line and flexible loan product to sit alongside the core credit card product and is planning to test television and radio advertising in selected regions during June. In the Consumer Credit Division (CCD), the repositioning of the home credit business as "a leaner, better-quality, more modern business with an emphasis on driving returns rather than growth" was reported to be "well on track".Tighter credit standards restricted the recruitment of more marginal customers into the business, with customer numbers in this unit down around 20% year-on-year with receivables 17% lower. As expected, CCD is benefiting from cost cutting in the second half of 2013 and, overall, profitability is running at a similar level to last year with further measures to come.The development of CCD's online instalment loan business, Satsuma, is progressing well, with the roll-out of new loans deliberately held back the first quarter ahead of a planned rapid development later in the year when systems are ready.The group's funding and liquidity positions are strong, it said, with sufficient funding capacity to fund maturities and the group's projected growth through to the seasonal peak in 2017.Chairman Manjit Wolstenholme said: "Credit quality in both businesses is good and the group's funding position is strong, providing confidence that the group is on track to deliver good quality growth in 2014."Shares in the group were up 0.77% to 2102p at 11:45 on Thursday. OH