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

Direors' 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.

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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