Business
Third Quarter Trading Update
Third Quarter Trading Update.
About this update from Vanquis Banking Group Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 7370P\n Provident Financial PLC\n 21 October 2021\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Provident Financial plc\n \n \n \n \n Third quarter trading update\n \n \n \n \n \n \n \n \n This announcement contains inside information\n \n Provident Financial plc ('PFG' or 'the Group'), the specialist bank for the underserved operating in the mid-cost segment of the market, publishes a trading update covering the three months to the end of September 2021, unless otherwise stated.\n \n Malcolm Le May, Chief Executive Officer, commented:\n \n \"The Group's trading performance during the third quarter improved significantly as a result of more favourable macroeconomic conditions reducing the impact of IFRS 9 accounting combined with customer demand for credit returning to pre-pandemic levels. Subject to these improvements continuing on a similar trajectory until the end of the year, the Board would consider declaring an ordinary dividend pay-out of approximately 30% of adjusted ongoing PBT1 in respect of FY'21.\n \n The Group remains conservatively positioned for any changes to the UK unemployment rate which occur as a result of job support schemes closing at the end of September. The early indication from our analysis of customer data is that the end of furlough is likely to have a lower impact on unemployment than previously thought. As such, the Board will review the Group's coverage levels at the year end with a view to making provision releases, if appropriate, which will reflect the unwind of our macroeconomic provisions taken during the pandemic.\n \n Over the last 18 months, we have supported our customers throughout a difficult period whilst focusing on several important strategic initiatives. The Board and I remain focused on establishing PFG as the specialist bank for the underserved operating in the mid-cost segment of the market, at present built on our three core products, and delivering growth and sustainable returns to our shareholders over the medium-term.\"\n \n Highlights\n \n \n ·The Group's trading performance during the third quarter of 2021 improved significantly as a result of the more favourable macroeconomic backdrop, reducing the impact from IFRS 9 provision accounting, combined with a return to pre-pan...