TRADES AHEAD OF EXPECTATIONS IN Q4, RESTRUCTURES VANQUIS BOARD13 Jan 2022 19:29
On HL website
(Sharecast News) - Sub-prime lender Provident Financial said its fourth-quarter trading performance continued to track ahead of management expectations, driven by favourable macroeconomic conditions and demand for credit from customers, and announced the restructuring of the board of Vanquis Bank as part of an effort to "substantially align its membership" with the board of PFG.
Provident Financial said its fourth-quarter trading performance continued to track ahead of management expectations, driven by favourable macroeconomic conditions and demand for credit from customers.
In the group's credit card business, credit standards remained "tight" and delinquency trends remained "benign", consistent with those outlined at the end of the third quarter.
Overall, customer credit card spend for the quarter was in line with pre-pandemic levels, although spend levels were impacted by the spread of Omicron through December and early January, in line with the wider market, while the group stated its vehicle finance business ended 2021 "well", with year-on-year growth in its customer numbers, customer feedback scores remaining positive and pricing of used vehicles at all-time highs.
As a result of the improved trading conditions in the second half, Provident now anticipates being able to release approximately £20.0m of Covid-19 macroeconomic related provisions as it reappraises its coverage ratios and intends to declare an ordinary dividend of approximately 30% of adjusted ongoing full-year earnings and anticipates providing guidance for a longer-term, progressive dividend policy with its full-year results.
Elsewhere, Provident Financial revealed it had restructured the board of Vanquis Bank as part of an effort to "substantially align its membership" with the board of PFG.
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