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Provident Financial swings to loss; to exit home credit market
StockMarketWire.com
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Subprime lender Provident Financial swung to a full-year loss and said it had decided to withdraw from the home credit market.
Pre-tax losses for the year through December amounted to £113.5 million, compared to a year-on-year profit of £119.0 million, and included exceptional costs associated with its troubled consumer credit unit.
Revenue fell 19% to £807.8 million. The company did not declare any dividends.
Provident Financial said the home credit business would either be placed into managed run-off or sold.
'We intend to build upon our existing unsecured personal loan product expertise during the course of 2021, in the 'mid-cost' segment of the market,' chief executive Malcolm Le May said.
'The unsecured loan offering is an important step towards our plans of becoming a broader banking group to the financially underserved customer.'
Le May said the company's credit card and vehicle finance businesses saw improving trends during the first quarter of 2021, with credit card spend improving and the demand for vehicle finance increasing month on month.
'These positive trends, supported by the Group's strong balance sheet, mean that we feel confident about how we are positioned in our markets,' he said.
Story provided by StockMarketWire.com
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