Credit, Collections & Insolvency News
Provident Financial has reported an adjusted ongoing pre-tax profit of £63.5 million for the six months ended 30th June 2021.
The results included its Consumer Credit Division (CCD) which is being closed down. Losses from CCD, the Group generated a statutory loss before tax of £44.2 million for the period.
Total revenue was £316.7m (2020 restated: 443.6m).
Provident’s Chief Executive Officer, Malcolm Le May said “The first six months of 2021 showed a marked contrast to the extremely difficult conditions seen throughout 2020. Underlying customer trends and macroeconomic conditions have improved year-on-year, allowing us to focus on the core businesses, which is reflected in our results.
“In March, we notified the market of our intention to launch a Scheme of Arrangement for CCD and in May, regrettably, we took the difficult decision to place the business into a managed run-off. I am pleased that the proposed Scheme of Arrangement for CCD, which was provided for in our 2020 accounts, was sanctioned by the High Court on 4th August. We can now continue to move forwards with our plans to close the business before paying customer redress claims during 2022.”
“During the remainder of 2021, PFG will accelerate its transition towards becoming the leading specialist bank focused on financially underserved customers, serving growing market segments with a range of mid-cost products across credit cards, vehicle finance and unsecured personal loans.”
He added Provident’s core products will be credit cards, vehicle finance and unsecured personal loans. As a result, it will no longer serve the “high-cost segment” of the credit market.
“We see this transition as being a core part of our drive towards making PFG a more sustainable lender, focused on providing much needed credit to our customers, whilst enabling good customer outcomes, and providing sustainable returns for our shareholders over the medium-term.”