StockMarketWire.com - Sub-prime credit provider Provident Financial said it continued to trade in-line with internal plans in the third quarter and remained on track to hit expectations for 2020.

The company said delinquency trends were stable in the quarter for its Vanquis Bank operation with customer spend down 15% year-on-year. The Moneybarn used vehicle credit business saw 1.5% of customers taking up payment holidays as at the end of September.

At the end of September, the group's balance sheet position showed regulatory capital of around £700 million, equating to headroom of around £200 million above minimum regulatory requirements and a CET1 ratio of around 36%.

Total liquidity at the end of September was circa £1.1 billion. Headroom on committed facilities at the group was £180 million and £700 million at Vanquis Bank.

Chief executive Malcolm Le May commented: 'Turning now to the performance of the group during the quarter, delinquency trends across the businesses were stable and the take-up of payment holidays continued to be lower than our initial expectations.

'New business volumes increased during the period and, importantly, we are well positioned for the traditionally busier fourth quarter.

'In the context of the trends seen in the sub-prime market, including the impact of Covid-19, the FCA's industry-wide relending practices review and heightened customer complaint activity across the sector, I have asked the new Managing Director of CCD, Hamish Paton, to undertake an operational review of the division.'





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