Business
Preliminary results
Preliminary results.
About this update from Vanquis Banking Group Plc
[{"type":"text","content":"\n \nRNS Number : 9886X Provident Financial PLC 28 February 2017 \n\nProvident Financial plc\nPreliminary results for the year ended 31 December 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 and Satsuma, and Moneybarn.\n \nHighlights\n \nStrong financial performance and dividend increase\n· Adjusted profit before tax1 up 14.1% to £334.1m (2015: £292.9m) and adjusted basic earnings per share1 up 9.2% to 177.5p (2015: 162.6p). \n· Statutory profit before tax up 25.7% to £343.9m (2015: £273.6m) and basic earnings per share up 19.8% to 181.8p (2015: 151.8p).\n· Return on assets2 of 15.3%, reduced from 16.1% in 2015 due to the impact of the 8% bank corporation tax surcharge on Vanquis Bank profits which became effective from 1 January 2016.\n· Total dividend per share up 12.1% to 134.6p (2015: 120.1p), supported by strong capital generation.\n \nExcellent growth momentum in Vanquis Bank\n· Adjusted profit before tax1 up by 11.3% to £204.5m (2015: £183.7m).\n· Customer numbers and receivables growth of 8.7% and 13.8% respectively against continued tight credit standards.\n· Strong lift in fourth quarter new account bookings reflecting momentum from expanded credit card proposition.\n· Testing of instalment loans to credit card customers launched in November with encouraging early results.\n· Return on assets2 of 13.8% in 2016, reduced from 15.8% in 2015 primarily due to the bank corporation tax surcharge. \n \nCCD delivering strong returns with Satsuma poised for profitable growth \n· Adjusted profit before tax1 up 9.3% to £115.2m (2015: £105.4m).\n· Robust demand has resulted in year-on-year receivables growth of 7.3%.\n· Increase in return on assets2 to 22.3% in 2016, up from 21.2% in 2015, reflecting a £12m reduction in start-up losses in Satsuma.\n· ...