Provident Financial performing in line thanks to Vanquis Bank

18th Oct 2013 07:31

- Vanquis Bank ahead of expectations- Consumer credit division still weakProvident Financial said it had performed in line with its expectations in the first nine months of 2013 thanks to a strong performance from its Vanquis Bank which provides credit cards to those turned down by mainstream banks.The doorstep lender said Vanquis had beaten internal expectations with robust margins, offsetting a weaker performance from its consumer credit division, which sells loans door-to-door. Provident Financial said: "The Consumer Credit Division (CCD) has seen no change to the weak pattern of demand reported in the first half of the year."It added that with household bills continuing to rise, customers were still cautious. The decline in its customer numbers has deteriorated to a fall of 8.7% at the end of September compared with a 5.8% decline reported at its half year results. However, it said that the benefit of cost savings implemented at the end of July had made up some of the shortfall in the third quarter.Provident Financial plans to reposition its consumer credit division over the next two years to broaden its customer and production proposition through the roll-out of online direct repayment lending. TB