Provident Financial makes strong start to the year

7th May 2015 11:06

UK lender Provident Financial said on Thursday that its businesses have made a strong start to 2015.Chairman Manjit Wolstenholme said in a statement: "Collections performance in the important first quarter trading period has been strong and credit quality in all three divisions is very sound, providing the foundation for another year of good-quality growth in 2015."The update covers the period from the beginning of 2015 to May 5 and comes ahead of the company's annual meeting of shareholders."A typically positive statement from Provident which indicates that it is progressing as we expect," said RBC Capital Makets.It said the company's growth potential and superior return on equity are reflected in the stock's premium valuation. "While no longer a standout yield (4.0% versus the sector average of 3.7%), we believe that Provident's high and predictable dividend (75% payout ratio) should continue to support the shares."