Demerger/Share Consolidation

Provident Financial PLC
16 July 2007


                            Provident Financial plc

 Demerger of the international home credit business of Provident Financial plc
     and the consolidation of Provident Financial ordinary shares effective

Further to the admission earlier today of the IPF Shares and the Consolidated PF
Shares to listing on the Official List and to trading on the London Stock
Exchange's market for listed securities, Provident Financial plc is pleased to
announce that the Demerger of its International Home Credit business and the
consolidation of PF Shares of 10 4/11 pence each into Consolidated PF Shares of
20 8/11 pence each have become effective.

CREST accounts were credited with IPF Shares and Consolidated PF Shares at 8.00
a.m. (BST) today.

Shareholders will be sent share certificates in respect of their holdings of IPF
Shares and Consolidated PF Shares on 27 July 2007.

Definitions used in the Circular to PF Shareholders dated 25 June 2007 shall
have the same meanings when used in this announcement except where the context
otherwise requires.


Enquiries:
Emma G Versluys
Deputy Company Secretary
Tel:  [phone] ext 2569

This announcement does not contain or constitute or form part of, and should not
be construed as, any offer or invitation to sell or issue, or any solicitation
of any offer to purchase, any PF Shares, Consolidated PF Shares or IPF Shares or
any other securities, nor shall it or any part of it nor the fact of its
distribution form the basis of, or be relied on in connection with, any contract
or investment decision in relation thereto.  This announcement does not
constitute a recommendation regarding the securities of Provident Financial or
IPF.


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