Shares in Provident Financial rose 6 per cent to 823p after the non-standard lender reported a 7 per cent rise in home credit loan sales since the beginning of September. What's more, the Vanquis Bank credit card business has passed the point where it is generating sufficient capital to fund its own growth.
IC TIP:
Hold
at
823p
The increase in loans has been directed mainly towards existing good-quality customers, which has helped to keep down bad loan provisions and maintain a stable collections performance.
Broker Numis forecasts full-year pre-tax profits of £141.2m and EPS of 77.2p, up from £130.1m and 70.9p in 2009.
