Lender’s shift to ‘lower risk customers’ provides stability in uncertain times

Provident Financial has benefitted from its shift away from the subprime market and believes targeting “lower risk customers” will help it keep on track this year.

The Bradford-based specialist lender has endured a tumultuous few years but more recently has stabilised its operations and successfully rolled out a new strategy for the group.

Chief executive Malcolm Le May said: “Notwithstanding the macroeconomic backdrop, the group remains on track to meet market expectations for the full year.

“This performance continues to reflect our move to lower risk customers following the repositioning of the group over the last two years towards the mid-cost and near-prime parts of the market.”

Provident said it “continued to perform in-line with management’s expectations” in the three months to September and is confident it will achieve its full-year forecasts.

Although Le May highlighted the effects of high inflation and an increased cost of living, he said the group’s asset quality “remained high”.

Provident provides personal loans, car finance and credit cards. It says it “continues to see attractive opportunities for growth…but will balance these opportunties by continuing a prudent approach to credit risk management”.