Provident Financial says its credit card business, Vanquis Bank, performed “modestly above expectations” in the fourth quarter, adding that it expects to report full-year results in line with market expectations. The company also said that its consumer credit division also had delivered results in line with its plans.
Consistent with the group’s strategy set out at the Capital Markets Day in November to diversify its funding base and lower the overall cost of funding, the group has agreed a bilateral securitisation facility with NatWest Markets to fund Moneybarn business flows. The new facility provides up to £100m of initial funding and is anticipated to grow to £275m over the next 18 months. The facility provides a comparable funding rate to the revolving credit facility which reduced from £450m to £235m in July 2019.
Commenting on the final quarter of the year, Malcolm Le May, Chief Executive Officer, said “I am very pleased that the group has continued to perform well in the final quarter and we expect to report full-year results in line with market expectations. I am also delighted to announce that we have now agreed a bilateral securitisation facility to fund Moneybarn’s business flows, further diversifying our funding sources, reducing the group’s funding costs and supporting the group’s medium- term growth ambitions.”
“We are well placed entering 2020 to continue to meet our customers’ needs and deliver against the targets set out at our Capital Markets Day in November.”