Provident Financial goes from strength to strength
While doorstep loan competitor Cattles continues to struggle with a second profits warning within two weeks it appears that life at Provident Financial has never been better. The company today announced pre-tax profits which were 12% up on 2007 at £128.8 million. The management are also confident that 2009 will see further growth in the company's operations and an increase in profitability. Unlike some in the sector, doorstep lender Provident financial has managed to retain a high quality loan book while gaining over 200,000 new customers.
The company has its own credit card for those with impaired credit histories which has seen over 1 million applications over the last 12 months. Thankfully the company has been very selective with the standard of customers it has taken on with only 20% accepted and the rest turned away. So while the group continues to grow it has turned away literally hundreds of thousands of new customers over the last 12 months, which seems to have preserved the company's loan book at least in the short term.
The difference between Provident Financial and Cattles is stark to say the least although at the end of the day it comes down to the quality of their loan books going forward which is something that Provident Financial has managed to maintain with apparent ease.
Share this..
Related stories
Parents funding over 25s' mortgages
A large number of parents with children over 25 are helping them pay their mortgages, new research has revealed.The study, from Engage Mutual Assurance, discovered that more nearly half (46 per cent) of parents who provide financial support for their grown-up children help them with the cost of moving or buying a new home, including with their mortgages.In total more than a quarter of parents with...
Read MoreInsurance fraud hits low-income consumers
The Financial Services Authority (FSA) has recently issued a number of fines in relation to insurance fraud which has left many people underinsured or in some cases uninsured despite paying their premiums. However, despite the fact that many consumers have forwarded this their premiums in good faith and assumed that the relevant cover has been taken out many will find the shocking reality when the...
Read MoreEnergy chief warns of higher bills
Ian Marchant, the chief executive of Scottish Hydro Electric, has today issued a statement which will bamboozle utility customers in the UK. He suggested that only six weeks ago he was forecasting a reduction in UK energy bills but this opinion has changed of late as gas and power prices remain stubbornly high in the wholesale market. He now believes that UK consumers are unlikely to see energy bi...
Read MoreWill US banking giants move to London after US banking levy is introduced?
In a rather bizarre quirk of fate, the announcement by Barrack Obama of a levy against the US banking sector to replenish taxpayer's funds may well play into the hands of the London market. Despite the fact that the UK government is pressing ahead with a 50% banking bonus tax the playing fields between the US and UK are now more level than they have been for some weeks. On the face of it, it seems...
Read MoreCobalt Capital offers 2.65% mortgage rate
Mortgage broker Cobalt Capital has today stepped into the breach with a 2.65% mortgage rate which is targeted at the wealthy end of the market. While those able to apply for the 2.65% rate will need to offer a significant deposit many in the marketplace believe this could be a turning point in the UK property sector. When you consider that the rate is around 1.5% less than the cheapest tracker fun...
Read More