Provident Financial to book £120m credit division loss
Source - SMW
Provident Financial said its consumer credit division was expected to report a "pre-exceptional" loss of around £120m, which was at the upper end of guidance provided in August of a loss between £80m and £120m.
The loss reflected a "lower-than-expected rate of re-connection through the fourth quarter with those home credit customers whose relationship had been adversely impacted following the poorly-executed migration to the new operating model in July 2017", the company said.
Vanquis Bank and Moneybarn, meanwhile, both traded satisfactorily through the final quarter of the year, it added.
"I am pleased to report that good progress has been made towards restoring customer service in the home credit business and that we are engaged in a dialogue with the FCA with a view to reaching a resolution of the regulatory investigations at Vanquis Bank and Moneybarn," chief executive Malcolm Le May said.
"In addition, we continue to make progress in the search for a new group chief executive."