Crisis-hit lender hires Northern Rock rescue exec

Crisis-hit lender Provident Financial is understood to have appointed  former Northern Rock rescue executive, Rick Hunkin, as its chief risk officer.

Hunkin, who takes up his new role next week, according to Sky News, has been chief risk officer at Royal Bank of Scotland Williams & Glyn unit since August 2014 and held the same position at Northern Rock between 2008 and 2011.

Provident was hit by a profit warning in August, leading to the exit of its chief executive Peter Crook, after the company was forced to announce that its transformation programme, which was expected to boost profits to around £150m, was forecast to generate losses of up to £120m.

Crook left the company with immediate effect after 10 years in charge following the profit warning that caused the company’s share price to crash, wiping off £1.7bn in a single day.

Manjit Wolstenholme, who assumed the role of executive chairman, then began her review of the business, replacing the boss of its home credit business.

Last month, Provident Financial confirmed it was facing a pre-exceptional loss for its consumer credit division of between £80m and £120m for 2017, as the hunt for a new chief executive got underway.

Provident Financial declined to comment on Hunkin’s appointment.

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