I am pleased with the progress that the Group has made in 2018 under challenging circumstances. We still have a lot to deliver in 2019 to fully turnaround the Group but I am confident that we are now well placed to deliver a successful PFG for all our stakeholders.
PFG is the leading provider of credit products which provide financial inclusion. We serve 2.4 million customers through our four brands all of which have market-leading positions. There remains a significant opportunity for us to enhance our market-leading positions through our businesses working much more collaboratively.
Provident offers home credit loans, typically of a few hundred pounds, to consumers on low incomes and tight budgets who require affordable credit to manage the household budget or one‑off items of expenditure.
0.4m
3,800
£(38.7)m
£100–£2,000
Satsuma is our online instalment loan product. We give new customers a small‑sum, short‑term loan and collect repayments by continuous payment authority either weekly or monthly.
117,000
£100–£1,000
Vanquis Bank is the leading supplier of credit cards to those not well served by mainstream lenders. We provide new customers with a low credit limit and only increase it when we have sufficient experience of the customer handling their account responsibly.
1.8m
1,600
£184.3m
£250–£4,000
Moneybarn is the market leader in the provision of vehicle finance for people well‑served by mainstream lenders.
62,000
300
£28.1m
£4,000–£25,000
Our KPIs are helpful in assessing progress but are not exhaustive as management also takes account of a wide range of other measures in assessing underlying performance. Adjusted measures are presented where management feel this is more representative of the underlying business performance as opposed to the statutory equivalent.
Growing sustainable, customer-centric businesses that deliver attractive returns in non-standard markets
Acting responsibly and with integrity in all we do
Maintaining a secure funding and capital structure
Generating consistent and sustainable shareholder returns
Apply exacting standards in allocating capital to organic and acquisition opportunities to invest in businesses that:
We provide our customers with tailored and affordable products that match their specific needs, and we help them to handle the inevitable challenges that life throws their way.
Consumer credit
£100 - £2k
Consumer loan range
Vehicle finance
£4k – 25k
Vehicle loan range
We create value for customers by generating high satisfaction and loyalty.
We focus on the UK credit market, developing simple, transparent products with flexibility to help customers not well served by mainstream lenders cope with life.
Customer needs
138 years
experience
Credit cards
£250 – £4k
Credit card limits
Attractive offers
2.4m
Customers
We create value for customers through offers of financial inclusion, and for colleagues and brokers through the income and commission they earn.
We use many ways to reach consumers. We target our offers using increasingly digital methods, as well as face-to-face and partners such as field colleagues, agents and brokers.
Great service
5,700
Employees
Data analytics
Enhanced affordability
1 November 2018
Implementation date
We create value for customers by ensuring loans are appropriate to their situation, and thereby generate sustainale returns for shareholders.
We use internal and external data, including face-to-face interactions, taking into account both the current situation and the likely future.
Face-to-face interaction
Building credit scores
We create value for customers by helping them access credit, stay in control and build their credit score to improve future access and choice.
We tend to lend smaller amounts over shorter periods and take a ‘low and grow’ approach as customers demonstrate sustainability.
From £100
Corporate responsibility
£1.7m
Community investment
We establish early contact and an ongoing dialogue with customers who have difficulties, with a sympathetic approach, to understand and offer forbearance.
We create value for customers by helping them minimise the impact of any difficulties in an understanding way
We offer many ways to pay in cash and remotely, maintaining frequent customer contact. We stay close to customers through call centre, digital communications and face-to-face meetings in the home.
We create value for customers by helping them stay on track and adapt to life’s challenges whilst building their credit score.
Adjusted profit before tax 2 £m
£153.5m
+40.7%
Statutory profit/(loss) before tax £m
£90.7m
+173.74
Adjusted basic earnings per share 2,3 p
46.6p
+1.97%
Basic earnings/(loss) per share 2,3 p
25.2p
+137.95%
Proposed dividend p
8p
0%
Dividend cover times
5.8 times
0%
Return on assets 1,4 %
7.5%
+8.7%
Customer numbers m
2.4m
-4%
Community investment £m
£1.7m
-34.62%
Total tax contribution £m
£133.6m
-20.48%
Jennie's day
"With the help of Vanquis Bank I have built up my credit score."
"I have been with Vanquis Bank for quite a few years and have built my credit profile up over that period. I saw a leaflet initially and applied as my credit was not very good and I had been refused credit elsewhere. I received a card with a £200 limit and was able to meet my repayments so qualified for further credit. With the help of Vanquis Bank I have built up my credit score and now use their Black card. The customer service is really good and I would recommend it. I have now recommended to my son who is looking to take credit for the first time”.
Jennie
Vanquis Bank customer, London
Bianca's day
"The credit card from Vanquis Bank gave me flexibility at a time when no one else would help me with money."
“Due to being sick, awaiting surgery and unable to work, I wasn’t able to build up a good credit rating and was refused credit from many lenders. The credit card from Vanquis Bank gave me flexibility at a time when no one else would help me with money. The online application process was really simple, and the credit has been invaluable for paying for courses for future work and learning to drive!”
Bianca
Vanquis Bank customer, London
Paul's day
"When I needed a loan... I knew who I could trust and turn to."
“I first came across Provident as a child and I remember my mum giving me Provident clothes vouchers. When I needed a loan later in life, I knew who I could trust and turn to. I can’t speak highly enough of my CEM Nikki, and although very professional, she has a personal touch. The loan was explained very clearly and methodically and it has come in use for bits and pieces around the house.”
Paul
Home credit customer, Portsmouth
Jess's day
"I want to use the card to build my credit score to secure cheaper credit in the future."
“Having just left university, I had no credit history and I was unable to get credit from many lenders. After a search on the internet, I found Vanquis Bank and then applied. The application process was straightforward and the paperwork was clear. I was able to check my credit profile when applying and I found that they started me with a low limit so I could learn how to manage my budget. I want to use the card to build my credit score to secure cheaper credit in the future."
Jessica
Vanquis Bank customer, London
Judith's day
"I have a very friendly CEM who visits every week which I find really supportive"
"I have been using the Provvy for years and years. I have a very friendly CEM who visits every week which I find really supportive. I have found them obliging and the money has helped with things around the home and day to day costs.”
Judith
Home credit customer, Winchester
Shirley's day
"I found Satsuma on the internet, the application was straightforward and I was able to use the loan quickly."
"I work as a freelance photographer which is great but has its downfalls – my customers may not pay straight away and therefore I don’t always have a regular income which meant I was refused credit by other lenders. I found Satsuma on the internet, the application was straightforward and I was able to use the loan quickly to pay my expenses whilst waiting for customers to pay me. I found the people nice and would recommend for short-term lending."
Shirley
Satsuma customer, London
