Business
Interim results for six months ended 30 June 2016
Interim results for six months ended 30 June 2016.
About this update from Vanquis Banking Group Plc
[{"type":"text","content":"\n \nRNS Number : 1801F Provident Financial PLC 26 July 2016 \n\n \nProvident Financial plc\nInterim results for the six months ended 30 June 2016\n \nProvident Financial plc is the leading non-standard lender in the UK. The group serves 2.4 million customers and its operations consist of Vanquis Bank, the Consumer Credit Division (CCD) comprising Provident, Satsuma and glo, and Moneybarn. \n \nHighlights\n \nStrong group profit performance and further dividend increase\n· First half adjusted profit before tax1 up 17.6% to £148.9m (2015: £126.6m) and adjusted earnings per share1 up 10.7% to 77.9p (2015: 70.4p).\n· First half statutory profit before tax up 48.9% to £165.4m (2015: £111.1m) and basic earnings per share up 39.2% to 86.0p (2015: 61.8p).\n· Stable annualised return on assets2 of 15.7% (2015: 15.6%), after absorbing the impact of the 8% bank corporation tax surcharge on Vanquis Bank's profits from 1 January 2016.\n· Interim dividend per share up 10.2% to 43.2p (2015: 39.2p).\n \nVanquis Bank profits and average receivables up by over 12%\n· UK profit before tax1 up 12.8% to £99.8m (2015: £88.5m).\n· Customer numbers and average receivables growth of 6.5% and 12.3% respectively against unchanged credit standards. \n· Strong lift in account booking volumes following refresh of direct mail programme in May.\n· UK annualised risk-adjusted margin3 of 32.4% (2015: 33.3%), in line with guidance and ahead of minimum target of 30%, with arrears remaining at record lows.\n \nCCD returns to growth and reported profits up sharply\n· First half adjusted profit before tax1 up 14.5% to £43.5m (2015: £38.0m), reflecting reduced start-up losses associated with Satsuma and glo.\n· Robust demand has resulted in year-on-year receivables growth of 2.6%.\n· Continued improvement in the annualised risk-adjusted margin3 to 81.1% (2015: 78.2%) due to tight credit standards and focus on serving good-quality existing customers.\n· Good progress made in deve...