(Alliance News) - Provident Financial PLC on Wednesday said it is on track to meet market expectations for 2022 as it said it continued to focus on cost control after performing in line third quarter with management expectations.
Provident is a Yorkshire, England-based banking group focused on customers in the near-prime and mid-cost parts of the credit market.
For the three months ended September 30, the group said that its asset quality remained high across all products despite challenging macroeconomic conditions caused by high inflation and the increased cost of living.
It attributed third quarter results to its own "prudent" approach to credit risk management.
In Provident's credit card business, delinquency trends remained stable with the results seen throughout the rest of the year. The receivables book grew by 5% in the third quarter, which the group attributed to its "prudent focus" on underwriting, and the maintenance of strong quality assets.
In its vehicle finance business, the improved arrears trend from the previous quarter continued, and by the end of the period the arrears rate was lower year-on-year.
At September 30, receivables were about 3% higher than the first half of 2022.
For the first time, Provident's personal loans business reported receivables of over GBP50 million. It will now offer loans at an annual percentage rate between 18% and 45% to customers.
As Provident continues to perform in line with management expectations into October, it remains confident of meeting market expectations for the full financial year.
"PFG's strong focus on risk management, its rigorous underwriting processes and its strategic repositioning, leaves it well placed to navigate market conditions, whilst supporting our customers by providing them with a valuable source of credit," said Chief Executive Officer Malcolm Le May.
"Underpinning this is the Group's strong balance sheet, which remains well-capitalised to support our medium-term growth and diversification ambitions."
The group reported regulatory capital of GBP660 million at the end of the period, and a total capital ratio of 38%.
Provident shares were trading 6.1% lower at 155.40 pence each in London on Wednesday afternoon.
By Holly Beveridge; hollybeveridge@alliancenews.com
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