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PFG - Provident Financial News Story

176.9p -1.0  -0.6%

Last Trade - 08/04/20

Sector
Financials
Size
Mid Cap
Market Cap £450.8m
Enterprise Value £2.12bn
Revenue £998.3m
Position in Universe 502nd / 1834

BRIEF-Provident Financial FY Group Adjusted Profit Before Tax Up 1.6% To £162.6 Mln

Thu 27th February, 2020 7:19am
Feb 27 (Reuters) - Provident Financial PLC  PFG.L :
    * FY GROUP ADJUSTED PROFIT BEFORE TAX UP 1.6% TO £162.6M
(2018
(RESTATED(1)): £160.1M)
    * FY STATUTORY PROFIT BEFORE TAX UP 32.4% TO £128.8M (2018
(RESTATED(1)): £97.3M), REFLECTING LOWER EXCEPTIONAL COSTS
    * STRATEGIC INITIATIVES OUTLINED AT CAPITAL MARKETS DAY IN
NOVEMBER ARE WELL UNDERWAY
    * AGREEMENT OF A £275M BILATERAL SECURITISATION FACILITY IN
EARLY
JANUARY 2020 TO FUND MONEYBARN'S BUSINESS FLOWS
    * ROP REFUND PROGRAMME AT VANQUIS BANK AND FCA INVESTIGATION
AT
MONEYBARN BOTH NOW COMPLETE
    * REGULATORY CAPITAL HEADROOM OF APPROXIMATELY £90M AT 1
JANUARY
2020
    * PROPOSES A FINAL DIVIDEND OF 16.0P PER SHARE (2018:
10.0P), UP
60.0% ON 2018
    * TOTAL DIVIDEND PER SHARE OF 25.0P PER SHARE (2018: 10.0P),
UP
150% ON 2018
    * ALL OF OUR BUSINESSES HAVE PROGRESSIVELY TIGHTENED
UNDERWRITING
OVER LAST TWO YEARS
    * FY VANQUIS BANK'S ADJUSTED PROFIT BEFORE TAX REDUCED BY
9.1% TO
£173.5M (2018 (RESTATED(1)): £190.9M)
    * NEW CUSTOMER ACCOUNT BOOKINGS OF 369,000, 3,000 HIGHER
THAN 2018
AND AHEAD OF MANAGEMENT'S PLANS IN FY AT VANQUIS
    * CCD FINISHED 2019 STRONGLY AND IS WELL-PLACED TO DELIVER A
BREAK-EVEN RESULT IN 2020
    * SIGNIFICANT REDUCTION OF 46.3% IN ADJUSTED LOSS BEFORE TAX
TO
£20.8M (2018: LOSS BEFORE TAX OF £38.7M) IN FY AT CCD
    * REDUCTION IN CUSTOMER NUMBERS AND RECEIVABLES BEGINNING TO
STABILISE, ENDING YEAR AT 522,000 (2018: 560,000) AT CCD IN FY
    * CET1 RATIO AT END OF 2019 WAS 30.7% WHICH PROVIDES
HEADROOM OF
APPROXIMATELY £117M
    * PLAN TO DELIVER RECEIVABLES GROWTH WITHIN A RANGE OF
BETWEEN 5%
AND 10% PER ANNUM OVER NEXT FIVE YEARS FROM A LOAN BOOK WHICH IS
 £2.2 BILLION
    * WE PLAN TO DELIVER A REDUCTION IN COST INCOME RATIO FROM
43% IN
2019 TO 38% BY 2022 AS PREVIOUSLY GUIDED
    * EXPECT TO BE DELIVERING AN ROE WITHIN OUR TARGET RANGE OF
20% TO
25% IN 2021
    * RETURNS THAT WE GENERATE WILL ALLOW US TO EVOLVE OUR
DIVIDEND
COVER TO AT LEAST 1.4 TIMES
    * ECONOMIC OUTLOOK POST-BREXIT REMAINS UNCERTAIN
    * WE NEED TO SEE FULL IMPACT OF PERSISTENT DEBT REGULATION
ON
RECEIVABLES AND IMPAIRMENT IN VANQUIS BANK

Source text for Eikon:  ID:nRSa2656Ea 
Further company coverage:  PFG.L 

 ((Reuters.Briefs@thomsonreuters.com;))
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