Business
Clarification regarding Future Performance
Clarification regarding Future Performance.
About this update from Vanquis Banking Group Plc
[{"type":"text","content":"\n \nRNS Number : 1186Y Provident Financial PLC 07 May 2019 \n\nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION\n \nFOR IMMEDIATE RELEASE\n \n07 May 2019\n \nProvident Financial Plc (\"Provident\")\nClarification regarding future performance targets\n \nThe Provident Board refers to its \"Trading Statement and Vision for the Future\" release on 03 May 2019 and, in particular, the references to future performance targets contained within the section \"What this means for shareholders?\" The Provident Board wishes to clarify as follows:\n \n\"We are confident that, through our clear strategy and our complementary, synergistic and industry-leading businesses, we will deliver an attractive investment for shareholders. As we transition to a model in which Vanquis Bank is the greatest driver of growth, it is appropriate that our return metrics are fully reflective of this. Accordingly, our target is to deliver a return on assets1 of approximately 10% for the Group as a whole which is consistent with a target return on equity2 of between 20% - 25%, by 2021 and beyond. We will also target sustainable receivables growth of between 5% and 10% per annum which we expect to achieve over the medium term, maintaining dividend cover of at least 1.4 times and a sensible buffer over the total capital requirement as prescribed by the PRA. \"\n \nFor the avoidance of doubt, the performance targets stated above are not intended to forecast a particular level of profit and, as a consequence, it is not possible to derive a profit figure for any future period.\n \nNotes\n1 Return on assets is calculated as profit before interest, amortisation of intangible assets and exceptional items after tax as a percentage of average receivables (calculation set out on page 66 of the 2018 Annual Report and Financial Statements).\n2 Return on equity is calculated as profit after tax, prior to the amortisation of acquisition intangibles and exceptional items, divided by average equity. Average equity is calculated after deducting the pension asset net of deferred tax and the fair value of derivative financial instruments (calculation set out on page 6...