Analyst Pre-Close Briefing

Provident Financial PLC
11 December 2003

ANALYST PRE-CLOSE BRIEFING - 11 DECEMBER 2003

Provident Financial, a leading international provider of consumer credit, car
finance and motor insurance with 3.4 million customers in the UK, Republic of
Ireland and Central Europe, is today providing a trading update ahead of the
commencement of the close period preceding the group's preliminary results
announcement on 26 February 2004.



The group is performing well and has traded in line with our expectations for
the 11 months to end November 2003.



UK Consumer credit

In UK home credit this year we have focused on achieving the best profit outcome
by balancing the mix of customer and credit issued volumes, bad debt and
overhead costs.  This approach is proving successful and whilst we expect that
we will see a marginal decline in both customer numbers and credit issued for
the full year, the ratio of bad debt to credit issued, that had risen to 9.7% at
the half year, has stabilised and is expected to remain at a similar level for
the full year. Costs remain under tight control and we continue to expect modest
profit growth from UK home credit in 2003.



Yes Car Credit is performing well and continues to grow strongly. By the year
end, six new branches will have been opened, taking the branch network to 26.
Each new branch is making a good contribution to sales growth and improving the
cost effectiveness of our national advertising. During the second half of this
year we took the decision to increase the percentage of our car sales for which
we provide finance from 90% to 100%. We now offer a full package of in-house
finance and related credit protection and warranty insurances on all the cars we
sell and so have increased the amount of profit we earn from each car sold.
Overall, we remain pleased with the performance of this new acquisition.



The market test of credit cards at Vanquis Bank is progressing well. By the year
end we expect to have about 35,000 cards in issue. We will continue to monitor
the performance of the portfolio throughout the first half of 2004 before
deciding whether or not to develop further this new product opportunity. The
test is expected to cost approximately £7m in 2003.



Motor insurance

The motor insurance division continues, as expected, to operate in a highly
competitive market. Premiums in the market are flat whilst claims costs are
rising at about 6% p.a. and so, as anticipated, the contraction of margins in
the motor insurance market that began in the summer of 2002 is continuing. We
have maintained our pricing approach; only offering prices that yield an
adequate return on equity and so we are reducing our policyholder numbers and
written premium. As the scale of the business has contracted we have reduced our
cost base. The outlook for 2003 remains for lower profit than in 2002, but the
business continues to earn a good return on equity.



International

Our international division is reporting substantial growth in customer numbers,
credit issued and profit. Our largest and most established markets of Poland and
the Czech Republic are developing well and increasing their profits strongly.
The developing businesses in Hungary and Slovakia are growing their customer
numbers very rapidly and both are continuing to expand their branch
infrastructures to achieve national coverage in 2004. The pilot operation in
Mexico has started well and currently has 1,600 customers.  Our intention
remains to operate on pilot scale in Mexico throughout 2004 before making a
decision on expansion in 2005. Overall, the division is making excellent
progress and achieving substantial profit growth.



Regulation

On 8 December, the UK government published a White Paper on Consumer Credit and
proposals on revised Regulations on Early Settlement, Consumer Credit
Advertising, Form and Content of Credit Agreements, APRs on Credit Cards, and
On-line Agreements.  We welcome the proposals and in particular the call for
greater transparency in the disclosure to the borrower of the costs of credit, a
tighter licensing regime and more effective redress for customers who are faced
with unfair contract terms.



Group

The trading conditions in the group's markets are as we expected. All our
business units are performing well and the group is trading in line with
expectations. We remain confident of reporting a good result for 2003.





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