By Harry Wilson, Financial Services Correspondent Published: 5:45AM GMT 03 March 2010
Provident Financial
Profits rose by 1pc in 2009 to �130m as Provident charted a march by the misfortune UK retrogression in some-more than 60 years a downturn that quite strike the low-income households to that the organisation specialises in lending to.
Impairments in the core consumer credit commercial operation increasing somewhat in 2009 to �217m from �197m in 2008, whilst pre-tax increase remained prosaic at �129m. The organisation blamed complicated sleet around Yuletide for holding behind increase in what is routinely one of the busiest trade periods.
The one after another profitability of Provident was driven by a tightening in lending standards, with Provident branch down about two-thirds of the consumer credit requests and 83pc of credit label applications. Job cuts in the firm"s head bureau and at the loss-making approach lending arm, Real Personal Finance, additionally helped keep a hoop on costs.
Real Personal Finance, that was set up dual years ago in an try to move in to higher peculiarity lending, lost �7.7m last year, as usually 1 out of 100 credit applications were approved, with Provident blaming the bad peculiarity of leads from third-party brokers. Provident has right away sealed the outmost commercial operation with the loss of 95 jobs, opting instead to combine on charity the use to existent customers.
Chief senior manager Peter Crook pronounced the organisation still saw opportunities in the approach lending market, but would wait for for mercantile conditions to improve.
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