Robust balance sheet at ‘repositioned’ lender
Bradford-based lender, Provident Financial Group, (PFG) has reported adjusted continuing pre-tax profits of £54.3m (H1 2021: £63.5m) in its interim results for the six months ended 30 June 2022.
This was driven by year-on-year receivables growth and lower impairment trends, partially offset by higher central costs.
The Group also recorded a statutory profit of £37.3m for the period (H1 2021: £44.2m loss).
PFG adds that its balance sheet remains well capitalised to execute the Group’s strategy.
At the end of June, the Group held total regulatory capital of approximately £660m (H1 2021: £585m), had a total capital ratio of 39.2% (H1 2021: 32.5%) and a surplus above the minimum regulatory requirement of approximately £310m (H1 2021: £210m).
Malcolm Le May, chief executive officer, said: “We have delivered growth and returns in line with market expectations and, reflecting the Board’s confidence and our robust financial position, we are recommending an interim dividend of 5.0p per share.
“We have successfully repositioned PFG as a specialist banking group focused on the mid-cost and near-prime sectors, increasing the size of our addressable market to some 14m people in the UK.
“We are investing in our IT infrastructure to deliver future efficiency savings and broadening our service proposition with Vanquis Personal Loans.
“We are all acutely aware of the potential challenges that the macroeconomic environment might present. However, we are confident our increased focus on lower risk customer segments together with our capital strength position us well to withstand the challenges ahead.”