PFG is a market-leading FTSE 250 company. We aim to deliver long-term value for our shareholders through our UK network and specialist knowledge of the market.
Our investment case is based on five key areas.
In the UK, one in five adults (10 to 12 million people) are underserved by mainstream lenders.
Because consumer participation in our market is typically driven by changing personal or household circumstances, the market is relatively fluid over time, with c.1 to 2 million consumers moving in and out each year.
As a customer-centric and specialist lender operating across the broadest range of product categories in our market, we feel we’re well placed to respond to the ongoing regulatory challenge inherent in operating in this market.
Our Blueprint brings together why PFG exists as an organisation, framed in the context of the role our business plays in the lives of our customers. It also sets out the strategic focus and key priorities that will drive both competitive advantage and commercial success for the whole Group.
While our customers share many similarities with mainstream credit customers, there are important differences arising from their individual circumstances.
Our customers need a tailored approach and a wider range of suitable and sustainable credit solutions to best serve their more varied needs. These needs tend to change over time, which is why we take a more flexible approach.
Our aim in the medium term is to create a bank for the underserved, a market of 12 million customers who need a bank that can cater for all their financial needs. To do this, we’re working towards bringing PFG and Vanquis closer together. We have substantial opportunities to take our Group forward as we look towards new markets, new products and new digital advancements.
To support the delivery of PFG’s Purpose, we have a financial model founded on investing in customer-centric businesses offering attractive returns, which aligns an appropriate capital structure with the Group’s dividend policy and future growth plans.
PFG’s medium-term targets, as communicated at our last Capital Markets Day, are to deliver:
- Receivables growth of between 5 and 10% per annum over the next five years (2019: £2.2bn)
- An ROE of between 20 and 25%, with an expectation of reaching the lower end of this range by 2021 (2019: 18%)
- A cost income ratio of 38% by 2022 (2019: 43%)