Provident Financial plc (‘the Group’ or ‘PFG’) is a leading specialist banking group with a focus on underserved markets.
Malcolm Le May, Chief Executive Officer, commented:
“I am pleased to announce that the Group’s application to the PRA for a large exposure waiver has been approved. This will allow us to leverage our existing access to retail deposit funding, through Vanquis Bank, to fund all of our lending products going forwards, including vehicle finance. This is an important part of our stated strategy of becoming a fully-fledged banking group and highlights the inherent competitive advantage we have of holding a banking licence. As we said with our H1’22 results, we will transition towards having a funding model which is predominantly retail deposit funded whilst maintaining the appropriate diversity of liquidity sources.”
The Group has received notice from the Prudential Regulation Authority (PRA) that it has approved the Group’s application for a Core UK Group large exposure waiver which will enable Moneybarn No.1 Limited, the Group’s vehicle finance subsidiary, to access retail deposit funding via Vanquis Bank with immediate effect. Moneybarn No.1 Limited has been partially funded by the bond market historically and the large exposure waiver will allow the Group’s maturities in 2023, which amount to approximately £160m, to be refinanced using retail deposits as planned.
Analysts and shareholders:
Owen Jones, Group Head of Investor Relations 07341 007842
Richard King, Provident Financial 07919 866876
Nick Cosgrove/Simone Selzer, Brunswick 0207 4045959