Inside this reportOverview
Our purpose 1
A snapshot of the Group 2
Our business model 4
Strategic report
Chairman's statement
6 Our customer proposition
Chief Executive Officer's reviewOur market
12- Vanquis Bank 36
19 - Consumer Credit Division 39
Our strategy and progress Our purpose and strategy
24 - Moneybarn 42
34 Risk management and principal risks 44
Relations with regulators 55
Financial review 57
Corporate responsibility 73
Governance
Chairman's introduction 91 Leadership and purpose:
Composition, induction and evaluation:
- Composition 114
- Our Board 94
- Induction for new directors 115
- Activities of the Board
- Board evaluation 117
during the year 98
Nomination Committee report 120
- Ensuring effective engagement
Audit, risk and internal control
with stakeholders 101
- Audit Committee and auditor 125
Shareholder and
Group Risk Committee 132
Investor Relations 105
Directors' report 137
Division of responsibilities 109
Direors' remuneration report
Annual statement by the Chairman
of the remuneration committee 145
Annual report on remuneration 146
Directors' remuneration policy 161
Financial statements
Consolidated income statement 168
Statements of cash flows 172
Consolidated statement
Statement of accounting policies 173
of comprehensive income 168
Financial and capital risk management 179
Earnings/(loss) per share 168
Notes to the financial statements 184
Dividends per share 168
Independent auditor's report 225
Balance sheets 169
Statements of changes
in shareholders' equity 170
Shareholder information
Information for shareholders
235
Cautionary statement
All statements other than statements of historical fact included in this document, including, without limitation, those regarding beliefs andexpectations about the financial condition, results, operations and business of Provident Financial plc and its strategy, plans and objectivesand the markets in which it operates, are forward-looking statements. Such forward-looking statements which reflect the directors' assumptions made on the basis of current information available to them at this time, involve known and unknown risks, uncertainties and other important factors and therefore undue reliance should not be placed on the, which include but are not limited to, changes in the general economic conditions in the markets in which Provident Financial plc operate and changes in government policy and regulation, which could cause the actual results, performance or achievements of Provident Financial plc or the markets in which it operates to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Nothing in the document shall be regarded as a profit forecast and its directors accept no liability to third parties in respect of this report save as would arise under English law. In particular, section 463 of the Companies Act 2006 limits the liability of the directors of Provident Financial plc so that their liability is solely to Provident Financial plc.
Our purpose
We help put people on a path to a better everyday life
Jennie's day
See how we helped Jenniepage 18
Paul's day
See how we helped Paulpage 28
Judith's day
See how we helped Judithpage 33
Bianca's day
See how we helped Biancapage 23
Jess's day
See how we helped Jesspage 30
Shirley's day
See how we helped Shirleypage 72
A snapshot of the Group
Customer numbers | Amounts receivable from customers |
2017: 2,550k | 2017: , £2,071.3m (IFRS 91), £2,309.4m (IAS 39) |
2,395k | £2,162.9m |
Adjusted basic earnings per share2,3(p) | Basic earnings/(loss) per share2,3 |
2017: 36.8p (IFRS 91), 45.7p (IAS 39) | 2017: (75.3p) (IFRS 91), (66.4p) (IAS 39) |
46.6p | 25.2p |
Adjusted profit before tax2 | Statutory profit/(loss) before tax |
2017: £84.2m (IFRS 9), £109.1m (IAS 39) | 2017: (£147.9m) (IFRS 9), (£123.0m) (IAS 39) |
£153.5m | £90.7m |
Proposed dividend | Dividend cover |
2017: £nil | 2017: n/a |
10p | 4.7times |
Return on assets1,4 | CET 1 ratio (%)5 |
2017: 6.9% (IFRS 91), 6.9% (IAS 39) | 2017: 14.5% |
7.5% | 29.7% |
Community investment | Total tax contribution |
2017: £2.6m | 2017: £168.0m |
£1.7m | £133.6m |
1 The Group has adopted IFRS 9 from 1 January 2018. Statutory prior year comparatives have not been restated. The Group has provided unaudited pro forma
2017 income statement and balance sheet comparatives as though IFRS 9 had been implemented from 1 January 2017.
2 Adjusted profit before tax is stated before: £7.5m of amortisation in respect of acquisition intangibles established as part of the acquisition of Moneybarn in August 2014 (2017: £7.5m) and exceptional charges of £55.3m (2017: £224.6m).
3 The weighted average number of shares in the period prior to the rights issue in April 2018 has been adjusted to take account of the bonus element of the rights issue of 1.367 and EPS comparatives restated.
4 Return on assets is calculated as adjusted profit before interest after tax as a percentage of average receivables for the 12 months ended 31 December.
5Common equity tier 1 (CET 1) ratio is measured against a fully loaded total capital requirement of 25.5%.
Our divisions
Consumer Credit Division
Provident offers home credit loans, typically of a few hundredpounds, to consumers on low incomes and tight budgets whorequire affordable credit to manage the household budget or one‑off items of expenditure.
Customers
440,000
Loan range
£100-£2,000
Vanquis Bank is the leading supplier of credit cards to those not well served by mainstream lenders. We provide new customerswith a low credit limit and only increase it when we have sufficientexperience of the customer handling their account responsibly.
Customers
1.8m
Loan range
£250-£4,000
Employees
3,800
Employees
Adjusted loss before tax1,2 | Customers | Loan range |
£(38.7)m | 117,000 | £100-£1,000 |
Adjusted profit before tax1
1,600
£184.3m
Satsuma is our online instalment loan product. We give newcustomers a small‑sum, short‑term loan and collect repayments by continuous payment authority either weekly or monthly.
See more about this contentpages 62-63
Moneybarn is the market leader in the provision of vehiclefinance for people well‑served by mainstream lenders.
Customers
Employees
62,000
Loan range
300
£400-£25,000
Adjusted profit before tax1
£28.1m
See more about this contentpages 60-61
See more about this contentpages 64-65
1 Before exceptional items and, in respect of Moneybarn, prior to the amortisation of acquisition intangibles.
2 Represents CCD as a whole.
Attachments
- Original document
- Permalink
Disclaimer
Provident Financial plc published this content on 13 March 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 13 March 2019 08:23:07 UTC