Highlights
Strong group profit performance and further dividend increase
First half adjusted profit before tax up 17.6% to £148.9m (2015: £126.6m) and adjusted earnings per share up 10.7% to 77.9p (2015: 70.4p).
First half statutory profit before tax up 48.9% to £165.4m (2015: £111.1m) and basic earnings per share up 39.2% to 86.0p (2015: 61.8p).
Stable annualised return on assets of 15.7% (2015: 15.6%), after absorbing the impact of the 8% bank corporation tax surcharge on Vanquis Bank's profits from 1 January 2016.
Interim dividend per share up 10.2% to 43.2p (2015: 39.2p).
Vanquis Bank profits and average receivables up by over 12%
UK profit before tax up 12.8% to £99.8m (2015: £88.5m).
Customer numbers and average receivables growth of 6.5% and 12.3% respectively against unchanged credit standards.
Strong lift in account booking volumes following refresh of direct mail programme in May.
UK annualised risk-adjusted margin3 of 32.4% (2015: 33.3%), in line with guidance and ahead of minimum target of 30%, with arrears remaining at record lows.
CCD returns to growth and reported profits up sharply
First half adjusted profit before tax1 up 14.5% to £43.5m (2015: £38.0m), reflecting reduced start-up losses associated with Satsuma and glo.
Robust demand has resulted in year-on-year receivables growth of 2.6%.
Continued improvement in the annualised risk-adjusted margin3 to 81.1% (2015: 78.2%) due to tight credit standards and focus on serving good-quality existing customers.
Good progress made in developing the further lending and digital capability at Satsuma.
glo guarantor loans proposition expected to be rolled-out towards the end of 2016.
Annualised return on assets increased to 22.3%, up from 19.7% at June 2015.
Moneybarn delivers further strong growth in new business
Adjusted profit before tax up 44.7% to £13.6m (2015: £9.4m), ahead of internal plans.
Significant year on year growth in new business volumes of 42.5%, reflecting access to the group's funding and product development.
Stable annualised return on assets of 12.9% (2015: 12.9%).
Robust funding and liquidity position
Strong and diverse funding capacity and liquidity position, including access to retail deposits in Vanquis Bank.
Headroom, including retail deposits capacity, of £458m and group fully funded until May 2018.
Gearing of 2.3 times (2015: 2.4 times) compared with a banking covenant limit of 5.0 times.
