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Provident Financial Group

Provident Financial PLC Clarification regarding future performance targets

Provident Financial PLC (LON:PFG), the Provident Board refers to its “Trading Statement and Vision for the Future” release on 03 May 2019 and, in particular, the references to future performance targets contained within the section “What this means for shareholders?” The Provident Board wishes to clarify as follows:

“We are confident that, through our clear strategy and our complementary, synergistic and industry-leading businesses, we will deliver an attractive investment for shareholders. As we transition to a model in which Vanquis Bank is the greatest driver of growth, it is appropriate that our return metrics are fully reflective of this. Accordingly, our target is to deliver a return on assets1 of approximately 10% for the Group as a whole which is consistent with a target return on equity2 of between 20% – 25%, by 2021 and beyond. We will also target sustainable receivables growth of between 5% and 10% per annum which we expect to achieve over the medium term, maintaining dividend cover of at least 1.4 times and a sensible buffer over the total capital requirement as prescribed by the PRA. “

For the avoidance of doubt, the performance targets stated above are not intended to forecast a particular level of profit and, as a consequence, it is not possible to derive a profit figure for any future period.