Provident Financial on track to meet market expectations despite 'challenging' economic conditions

In a statement, the group said it continues to see attractive opportunities for growth, but will balance these opportunities by continuing a prudent approach to credit risk management “given the prevailing macroeconomic conditions”.

The statement added: “During the third quarter of 2022, the group continued to experience a stable and consistent trend in the asset quality in all of its products. As the macroeconomic environment evolves, the group will continue to assess its options to deploy its capital for growth and sustainable returns.”

Malcolm Le May, the chief executive officer, said: “I am pleased to report that the group continued to perform in-line with management’s expectations throughout the third quarter of 2022 and into October.

He added: “ 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.

He added: “The prevailing macroeconomic conditions during the period were challenging, with the effects of high inflation and an increased cost of living being experienced by everyone, but the group’s asset quality remained high across all products.

"PFG’s strong focus on risk management, its rigorous underwriting processes and its strategic repositioning, leaves it well placed to navigate market conditions, whilst supporting our customers by providing them with a valuable source of credit.

"Underpinning this is the group’s strong balance sheet, which remains well-capitalised to support our medium-term growth and diversification ambitions.”

In a statement, Provident Financial said: “The group continues to focus on cost control and delivering financial and customer experience benefits from the investment it is making in its platforms and operations.

"In the group’s credit card business, delinquency trends remained stable and consistent with the experience seen in the year to date. Customer spend trends for the period were stable and, in aggregate, spend per active customer for the period was higher versus the previous quarter.

"As a result, and together with the prudent focus on underwriting and maintaining strong asset quality, the receivables book grew by approximately 5 per cent during the third quarter.”