Provident Financial sees FY growth

LONDON (Reuters) - Sub-prime lender Provident Financial (PFG.L) said it would deliver further profitable growth this year thanks to cautious lending during the economic downturn and the collapse of rivals.

Provident Financial, which lends small sums to borrowers who cannot get credit from mainstream banks, said on Friday that the "sound overall condition" of its loan book meant the company was well positioned ahead of the busy Christmas season.

"As we enter the peak trading period, we are well placed to deliver further profitable growth for 2009," said Chief Executive Peter Crook in a statement.

The group said it had deliberately slowed the rate of new customer growth in 2009 in its Consumer Credit Division and said customer numbers were around 4 percent higher than the same period in 2008.

It added only around 17 percent of card applications were being accepted at its Vanquis Bank.

Provident Financial said its senior bond launched in October and tender offer had raised additional facilities of around 160 million pounds and said it was sufficient to fund the group's organic growth plans into 2011.

The company said its focus on lending small sums of money to consumers with low debt levels had also increased its resilience but cautioned it saw no prospect of a quick economic rebound.

"The group's current planning assumes that there will be no material improvement in the rate of increase in unemployment until next Spring, and that a cautious approach to new lending will remain in place until then," the company said.

(Reporting by Farah Master; editing by Paul Hoskins)