Q4 Trading Update, Product Launch and Name Change

About this update from Vanquis Banking Group Plc

      Provident Financial plc Fourth quarter trading, new product launch and Group name change plans 26 January 2023   Provident Financial plc ('the Group'), a leading specialist banking group with a focus on customers in the mid-cost and near-prime credit markets, publishes today a trading update covering the three months to 31 December 2022, unless otherwise stated. The Group is also making a separate announcement today about Malcolm Le May's decision to step down as Chief Executive Officer and the appointment of his successor.   Highlights   · The Group experienced strong momentum across each of its products during the fourth quarter, notwithstanding the challenging macroeconomic backdrop, underpinned by its strong capital position and access to retail deposit funding:   -  Strong receivables growth across credit cards, vehicle finance and personal loans   -  Asset quality remained high and delinquency trends remained stable, consistent with the experience in the first three quarters of the year, driven by the Group's robust underwriting framework and focus on credit quality   -  Investment in the Group's platforms, products and capabilities continued, as previously announced   -     The large exposure waiver application was approved by the Prudential Regulation Authority ('PRA') enabling all future lending to benefit from lower cost funding   · Consistent with its stated strategy to diversify its product offering, and thereby to reduce credit risk over time, the Group has launched a pilot phase for a new secured product of second charge mortgages.   · The Group has decided to change its name to Vanquis Banking Group plc to better reflect the Group's mix of lending products today and its repositioning as a specialist banking group focused on lower risk customers, as illustrated by the Group's current average credit risk more than halving since 2019.   Malcolm Le May, Chief Executive Officer, commented:   "2022 was a transformational year for the Group as we built on the very strong foundations put in place during the previous year. We enter 2023 with a planned new corporate identity as Vanquis Banking Group, a new secured product strategy with the launch of our second charge mortgage pilot phase and new funding optionality with the approval of the large expos...

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