Bradford-based credit group Provident Financial is on target to report 2012 profits of around £180 million next month, which is in line with expectations.

In a trading update for the year ended December 31, Provident said the outperformance of the Vanquis Bank credit card operation had compensated for “relatively subdued demand” for credit in its Consumer Credit Division Vanquis Bank generated strong growth and margins throughout the fourth quarter of 2012 and had continued to invest heavily on attracting new customers.

By the year-end Vanquis customer numbers had risen by 30 per cent to 899,000 compared with the previous year, with average receivable growing by 37 per cent.

The success of the Vanquis business led Provident to announce it would be seeking another 250 call centre staff, on top of the 250 already being recruited and would also need extra office space in Bradford city centre to accommodate the expanding operation.

Provident reported that demand for the Vanquis card continued to enjoy strong demand and had seen no discernible impact on the business from competitors.

A pilot credit card operation in Poland was progressing according to plan and at a cost of around £3 million for 2012, which was in line with previous guidance.

Pressure on disposable incomes due to rises in food and utility prices continued through the fourth quarter resulting in cautious borrowing by consumer credit division customers and Provident maintaining tight credit standards.

As a result, sales through the peak trading weeks of the fourth quarter were about 2.5 per cent lower than 2011 and receivables ended the year approximately one per cent lower.

Home credit customer numbers remained level with 2011 at 1,827,000, having been down two per cent at the half year stage.

Chief executive Peter Crook, said: “I am pleased to report that the group has traded well through the fourth quarter of 2012 and expects to report results in line with market expectations.

“Both businesses enter 2013 with sound credit quality and the group’s funding position remains very strong."

Provident will announce its full 2012 results on Tuesday, February 26.