Highlights
Strong financial performance and dividend increase
Adjusted profit before tax1 up 25.0% to £292.9m (2014: £234.4m) and adjusted earnings per share1 up 22.6% to 162.6p (2014: 132.6p).
Statutory profit before tax up 21.8% to £273.6m (2014: £224.6m) and basic earnings per share up 20.0% to 151.8p (2014: 126.5p).
Return on assets of 16.1%, an increase from 15.1% in 2014 mainly attributable to CCD.
Total dividend per share up 22.6% to 120.1p (2014: 98.0p).
Strong growth and returns in Vanquis Bank
UK profit before tax up by 22.8% to £185.5m (2014: £151.0m).
UK customer and average receivables growth of 9.9% and 19.6% respectively, reflecting strong momentum from addressing the underserved non-standard credit card market.
UK risk-adjusted margin3 of 32.8% (2014: 33.2%), ahead of minimum target of 30%, with arrears at record lows.
Chris Sweeney appointed as Managing Director following the retirement of Michael Lenora.
Successful repositioning of CCD
Adjusted profit before tax1 up 1.4% to £105.4m (2014: £103.9m).
Successful repositioning of the Provident home credit business as a smaller, better-quality, more cost-efficient business focused on returns.
Year-on-year reduction in receivables of 7.3% due to tighter credit standards and shorter duration of the book, with reduction narrowing from 18.0% at June 2015.
Marked improvement in the risk-adjusted margin3 to 82.2% (2014: 69.1%) due to significant improvement in credit quality.
Continued investment in Satsuma to support the development of the substantial online market opportunity.
Business plan to roll out the glo guarantor loans proposition during 2016 is now in place.
Sharp increase in new business at Moneybarn
Adjusted profit before tax1 of £21.3m in 2015, 42.0% higher than pro forma4 2014 profits of £15.0m.
Significant year-on-year growth in new business volumes of 69%, reflecting access to the group's funding and product extensions.
Default rates in line with plan and stable risk-adjusted margin of 24.3% (2014: 24.6%).
Robust funding position and strong capital generation
Gearing reduced to 2.2 times (2014: 2.4 times) through strong capital generation.
Group fully funded to May 2018.
Capital generated of £189.9m (2014: £175.5m), more than covering dividends in respect of 2015 of £173.6m (2014: £141.3m).
