Provident Financial appoints chairman as new CEO

Provident Financial has appointed its chairman, Malcolm Le May, as group chief executive.

The Bradford-based sub-prime lender has appointed him to the position with immediate effect to turnaround the business. 

Provident Financial said: “The Board believes that Malcolm Le May is an outstanding candidate for the role, given his existing knowledge of the Group, his deep knowledge of the business and sector, his regulatory understanding and turn-around and leadership skills. In making this decision the Board has consulted with certain of its leading shareholders and discussed his appointment with the FCA.” 

Earlier this month, Provident Financial announced that it has made losses of £120m after major issues with its transformation programme, which was expected to boost profits to around £150m, last year. Former CEO Peter Crook left the business with immediate effect.

The Board said that since the trading statement on the 16 January, its Home Credit division continued to make good operational progress, and discussions continued with the Financial Conduct Authority in relation to the Vanquis Bank and Moneybarn investigations.

Stuart Sinclair, who led the process to appoint the new CEO and is now interim chairman at Provident Financial, said: “It became clear to the Board as the search was progressing that the Executive Chairman who has been instrumental in driving the business forward over recent months was the best person to complete the turn around of Provident Financial Group as the new Group Chief Executive Officer.”

Malcolm Le May, added: “My key objective is to execute a turn around of the group. We will re-establish a stronger customer focused business; conclude with our regulators the issues surrounding Vanquis Bank and Moneybarn; continue the progress being made in our Home Credit business and restore it as the pre-eminent business in its market; and ensure our businesses collaborate for the benefit of our customers and our shareholders.”

The company also announced a number of senior appointments:

Executive

·    Chris Sweeney, MD Vanquis Bank, will continue to focus on leadership of Vanquis Bank and the successful resolution of ROP; once this has been achieved the Board intends to appoint him as deputy group chief executive in addition to his Vanquis Bank role,

·    The permanent appointment of Chris Gillespie, MD Consumer Credit Division,

·    The appointment of Steve Grigg, as interim group chief information & technology officer.

Board

·    The Board has instigated a process to appoint a new external Chairman as well as two additional non-executive directors.

·    The appointment of Stuart Sinclair as interim chairman, moving to this role from that of senior independent director.

·    The appointment of Andrea Blance, as the new senior independent director.