Wonga profits shoot up

<p>Profits are up at payday loans company Wonga.</p>

Wonga has revealed a large rise in its profits, as well as a boost to its total lending.

In its annual statement, the payday loans company announced £1.2 billion in lending, which represents an increase of 68 per cent, as well as a 35 per cent rise in profits to record a figure of £84.5 million for 2012.

Errol Damelin, Wonga founder and chief executive, explained Wonga is playing its part in the economy by lending responsibly.

Wonga has drawn criticism in recent months from a wide range of parties, especially after it earned a profile boost when it confirmed its name would be on Newcastle United's shirts this season in the Premier League.

The team's Senegal international striker Papiss Cisse initially refused to wear the Wonga-branded shirt before coming to an agreement with the club.

Mr Damelin said: "Access to practical and affordable sources of credit is a big issue for our society."

Find up to date information on the FTSE 100 and spread betting strategies at City Index

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.