Funding Update

RNS Number : 4018F

Provident Financial PLC

04 November 2022

 

Provident Financial plc

Funding update

4 November 2022

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 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."

Funding update

The Group has received notice from the Prudential Regulation Authority (PRA) that it has approved the Group's application for a 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.

Enquiries:

Analysts and shareholders:

Owen Jones, Group Head of Investor Relations   07341 007842

[e-mail]

Media:

Richard King, Provident Financial   07919 866876

Nick Cosgrove/Simone Selzer, Brunswick   0207 4045959

[e-mail]

 

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