Cash-strapped consumers are clamouring for Provident Financial’s credit cards but holding back on taking out more doorstep loans.
The group’s Vanquis credit card business, for people most other banks would not take on, saw a 27% jump in customers over the last 15 weeks. The firm said that it had delivered strong growth and profit margins and was exceeding management plans.
At the more traditional doorstep lending arm Provident said trading was in line with last year with existing customers taking out fewer new loans as food and uitility bills continued to rise. It said it expected clients to remain cautious as it enters the key pre-Christmas loan selling season. Provident reported that across both businesses the level of bad debts remained at a sound level.
Chief executive Peter Crook said: “Credit quality is being reinforced by tight underwriting criteria and, as it enters its peak trading period, the group is on track to deliver good quality growth for 2012.”
