Review of consumer credit division is nearing completion, says Provident Financial

Provident Financial is set to reveal the results of the review of its consumer credit division later this month.

Tuesday, 4th May 2021, 8:34 am
Updated Tuesday, 4th May 2021, 8:38 am
Provident Financial has provided an update for the City

In a statement, Provident Financial said it noted the recent media coverage regarding the previously announced operational review of its consumer credit division (CCD) including, as an option, the possibility of a managed run-off of its home credit and Satsuma businesses.

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The statement added: "The group confirms that, whilst no decisions have been made, the review is nearing completion and the outcome will be announced with the group's full year 2020 results, to be published on Monday 10 May."

Analyst Gary Greenwood at Shore Capital said: "Provident has acknowledged the possibility of a managed run-off of these businesses in a statement released this morning, but said that no decisions have as yet been made.

"Ultimately, tough decisions will need to be made in respect of CCD which are the result of a tightening regulatory regime and the fact that claims management companies have been allowed to run riot in the sector. It would be a shame, in our view, if a business that has been viable and profitable for most of its 140 year history would essentially be forced out of business in this way."