Wonga makes weekly profit of more than £1m

Controversial payday lender Wonga makes more than £1m in profits per week, founder Errol Damelin said today.

During 2012, Wonga earned profits after tax of £62.5m – a 36% increase on the previous 12 months.

During the period, revenues rose by 67% to £309.3m and it lent £1.2bn in total to more than one million people.

The lender, which was condemned by the Archbishop of Canterbury in July, makes 5p of profit on every £1 it lends.

Damelin said the company’s profit margins were “not outrageous in any way”.

“Our customers are telling us that we provide very good value for money,” he told Sky News.

Damelin defended criticisims about the company and insisted that it was “upfront and transparent”.

“This is not about people on breadlines being desperate and us being a lender of last resort. We reject two-thirds of applications,” he said.

 

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