Provident Financial Q1 trading in line with management expectations
By Iain Gilbert
Date: Thursday 19 May 2022
(Sharecast News) - Lender Provident Financial said on Thursday that it had continued to trade in line with internal expectations during the first three months of the year, adding that it remained on track to meet full-year market expectations.
Provident Financial stated its credit card business experienced a recovery in customer spend patterns to 2019 levels during the quarter, while delinquency trends remained stable and consistent with the final quarter of 2021.
New customer bookings increased approximately 25% year-on-year despite tighter underwriting standards, and receivables were broadly consistent with the prior year at the end of the quarter.
Provident's vehicle finance business continued to see "a buoyant second-hand vehicle market", whilst credit issued was broadly flat year-on-year and arrears rates reduced slightly from seasonal highs in the fourth quarter.
The FTSE 250-listed group added that its personal loans business saw open market loan volumes continue to track ahead of expectations, demonstrating strong underlying demand from customers.
Chief executive Malcolm Le May said: "Underpinned by its strong balance sheet and risk management framework, PFG remains prudently positioned for the current inflationary environment in the UK and will continue to support its customers through additional support and increased communication.
"For the first quarter of 2022 and April, we have seen no discernible negative impact on our customers as a result of higher living costs. For the remainder of 2022, we will focus on cementing PFG's place as a leading specialist bank whilst continuing to provide our customers with access to credit products not generally available to them elsewhere."
As of 0915 BST, Provident shares were down 3.70% at 234.0p.
Reporting by Iain Gilbert at Sharecast.com
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