Credit provider, Provident Financial said it has >continued to deliver results in line with its internal plans during the third quarter. Publishing its latest trading results, the firm says all three of its divisions are producing good business volumes and a stable impairment performance. However, it also says it is continuing to cut headcount at its Consumer Credit Division (CCD), in response to a fall in customer numbers.
Malcolm Le May, group Chief Executive officer, said “I am pleased to report third-quarter performance in line with internal plans, with continuing good momentum in new customer volumes and stable delinquency. The ongoing improvement in performance leaves the group well placed as we enter the important fourth-quarter trading period.
I am also delighted that we will be presenting our medium-term strategic vision for Provident at today’s Capital Markets Day. We believe our plans will ensure that the group continues to be the market leader in the provision of credit products to the under-served.
We are well placed to meet changing customer needs, respond to the evolving regulatory environment whilst at the same time delivering attractive and sustainable returns for shareholders.”
Provident Financial’s divisions include Vanquis Bank, Moneybarn and CCD comprises the group’s home credit business, Provident, and the digital loans business, Satsuma.
Commenting on CCD, the trading update reports: “CCD has continued to take the necessary actions to reduce headcount in response to the reduction in customer numbers. As a result, a further 400 CEMs and field managers have either left or are expected to leave the business by the end of 2019.”
“Together with actions already taken and the ongoing tight control of costs, this is expected to result in CCD’s cost base reducing to below £200m in 2020 compared with an annual run rate of approximately £260m in September 2017. Overall, there has been a reduction in roles within CCD of 1,400 over the same time period.”
“CCD remains on track to deliver its 2019 objective of stabilising the customer base and reducing the cost base in order to deliver a break-even result in 2020.”