24 July 2012- interim results
Interim results from home credit and credit card group Provident covering the six months to 30 June showed strong growth, with pre-tax profits rising by 17% to £72.9m and earnings per share up by almost 20% to 41.1p. The interim dividend was raised 8% to 28.8p. In challenging market conditions, the home credit business reported similar first half operating profits to last year at £50.4m, but the credit card business (including Vanquis Bank) reported impressive growth with operating profits rising by 60% to £28.2m. The group’s funding position is very robust and long term prospects look solid. After the strong run in the share price we reduce our recommendation to HOLD.