Pre-Close Briefing

Provident Financial PLC
18 December 2006


PROVIDENT FINANCIAL PRE-CLOSE UPDATE

Overall, the group has traded in line with the Board's expectations in the
eleven months ended 30 November 2006.


UK Home Credit

The UK Home Credit business has performed in line with expectations in the
eleven months to November 2006.  At the end of November, customer numbers were
up 0.5% on the prior year despite tighter controls over the acceptance of new
customers.  This growth reflects further gains from the marketing investment in
new sales channels, including direct mail and the internet.  The continuing
pressure on the disposable incomes of consumers in UK Home Credit's target
market has seen impairment charges increase at a faster rate than revenue,
consistent with the trend reported in the first half of the year.


Vanquis Bank

Vanquis' focus on developing and applying more rigorous underwriting criteria
together with increasing the resources dedicated to collections, has proved to
be the right set of priorities in difficult market conditions which have seen
impairment charges rise across the industry.  Customer numbers continue to grow
and were close to 250,000 at the end of November, assisted by internet
recruitment which has supplemented its primary direct mail sales channel.   As
previously indicated, Vanquis is expected to report a start-up loss in 2006
which is slightly greater than the guidance issued at the time of the Interim
Results in September and reach breakeven in 2007.


Motor Insurance

Provident Insurance is trading ahead of expectations, with profits continuing to
benefit from the favourable development of claims costs.  Yesinsurance.co.uk,
its internet-based distribution channel launched earlier this year, is trading
well.


Yes Car Credit

The collect out of the Yes Car Credit receivables book has continued to progress
well.


International

The international home credit businesses have, in aggregate, performed in line
with expectations and at the end of November customer numbers were up 3% on the
prior year.

Over the past two years, the Polish operation has had to contend with rolling
out the new product to comply with the interest rate cap legislation introduced
in February 2006 and also respond to the adverse trends in collections and
impairment that emerged during 2005.  Management have successfully met both
challenges and it is now pleasing to report an improvement in the quality of
lending and the receivables book which is generating a significantly reduced
level of impairment charges.  The business is now investing in marketing and its
field operations to restore profitable growth.

In Hungary, the changes to administrative procedures and the status of agents
required by the PSZAF, the Hungarian financial supervisory authority, have been
completed and lending  recommenced on 6 December, having been temporarily
suspended on 17 October.

In Mexico, customer numbers stood at almost 250,000 at the end of November, more
than double the prior year and up from 184,000 at the end of June.  As stated at
the Interim Results, the current priority is building the experience of the
local management and field operations before resuming geographic expansion
through further branch openings.


Demerger

Good progress continues to be made with preparations for the proposed demerger
of the international business, and full details will be provided with the
announcement of the Group's Preliminary Results for 2006 on 7 March 2007.


Enquiries:

Media
Kevin Byram, Brunswick                                020 7404 5959

Nigel Prideaux, Brunswick                             020 7404 5959

Investor Relations
Helen Waggott, Provident Financial                    01274 731111






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