Business going well for Provident Financial

Well known doorstep lender Provident Financial has reported healthy figures for the first half of this year both for its loans division and its credit card division. The lender operated that sub-prime credit card, Vanquis, and has seen a healthy rise in borrowing on the credit card according to recent reports. It has also seen a massive 34% rise in loans for the first half of the year.

It is thought that these healthy figures stem from many consumers being unable to get credit cards and loans via more traditional routes such as High Street banks because of the tighter credit conditions that have come into play since the onset of the global credit crunch.

One official from Provident said: “I am pleased to report a strong set of half-year results. We have continued to expand customer numbers in both businesses and our responsible approach to lending means this growth is both sound and profitable. Whilst market conditions continue to be favourable, we have been responding to the pressure on household incomes from price inflation and a weakening economy.”

He also said: “Our decision to be increasingly cautious in our approach to granting new credit over the last 12 months has resulted in the group’s businesses delivering high-quality customer and profit growth. The group’s strong funding position leaves it well placed to continue doing so through the second half of 2008.”