Wonga eyes growth as profits triple

By SCOTT REID
Published on 17/09/2012 00:00

Payday lender Wonga has more than tripled its profits as it eyes expansion overseas.

Accounts for the firm – which charges annualised interest rates in the thousands of per cent but claims its short-term loans can be cheaper than an unauthorised overdraft – are set to show a rise in earnings after tax to £45.8 million from £12.4m a year earlier.

Errol Damelin, who co-founded Wonga five years ago, attributed the strong performance to its advanced computer system. Borrowers are able to obtain funds within 15 minutes if they pass the firm’s credit check.

“We deliver a service that people want and in a way that people like,” said Damelin.

The firm is expected to grow its overseas empire early in 2013, with Australia and Canada the favoured targets. Revenues in the last year hit £184.7m.