UK consumer lender Provident Financial has revealed that it has arrested a three year fall in customer numbers by increasing its client accounts in the first six months of the year. However, increased costs are expected to force profits down.
The Bradford-based lender, which specializes in loans to low-income households, has recently been struggling in a difficult environment of shrinking customer numbers and growing bad debts.
However after a prolong period of customer loses, including a 4% drop in the first half of last year, the company has finally managed to reverse the trend: according to Reuters, Provident collected 7% more money in H1 2006.
Despite this, the company has predicted lower profits for the current financial year due to increased costs. So far this year the company’s profits have been eroded by costs which are GBP5 million up on the same period last year.
The lender recently expanded its business into eastern Europe to counter difficult trading conditions in the UK. However, it now has also revealed plans to spin off its international division in 2007.