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Here are 1-2 brief analogies to describe Provident Financial (PROV):

• Capital One for UK consumers with developing or lower credit scores. (Reflecting Vanquis Bank's focus on credit cards for customers building or rebuilding their credit history.)
• OneMain Financial for UK personal loans and vehicle financing for non-prime customers. (Highlighting Moneybarn and other lending activities to individuals who may not qualify for mainstream credit.)

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• Credit Cards: Provides credit card facilities, primarily to individuals with limited or adverse credit histories.
• Personal Loans: Offers unsecured personal loans to customers seeking funds for various purposes, often those overlooked by mainstream banks.
• Vehicle Finance: Specialises in hire purchase agreements for used cars and vans, catering to customers who struggle to obtain finance from traditional lenders.

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Provident Financial (symbol: PROV) primarily sold financial products and services to individuals. It is important to note that Provident Financial plc de-listed from the London Stock Exchange in December 2023. Its constituent businesses have either been sold or demerged into a separate public entity (Vanquis Banking Group, symbol: VANQ).

Historically, when operating as a public company, Provident Financial served the following categories of individual customers:

1. Customers seeking credit cards and personal loans: Served by its Vanquis Bank division (now part of Vanquis Banking Group), this category included individuals with adverse or limited credit histories who were often underserved by traditional high-street banks.
2. Customers seeking vehicle finance: Served by its Moneybarn division, this category comprised individuals looking for used car finance, particularly those who might have difficulty obtaining credit from prime lenders.
3. Customers seeking small-sum, short-term unsecured credit: Historically served by its Provident Personal Credit division (which ceased new lending in 2021 and was later sold), this category targeted individuals with limited access to mainstream banking and credit.

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Ian McLaughlin, Chief Executive Officer

Ian McLaughlin joined Vanquis Banking Group as Chief Executive Officer in August 2023. He brings over 30 years of experience in the financial services industry, with expertise spanning consumer finance, motor finance, savings, mortgages, wealth management, and insurance. Previously, he served as the CEO of Bank of Ireland UK Plc starting in 2019. Before that role, he held senior retail banking positions at Royal Bank of Scotland (now NatWest Group), where he was involved in developing specialist consumer and commercial financial services propositions. McLaughlin has a proven track record of driving growth by enhancing customer service and optimizing distribution. He has also served as a non-executive director on various bank and technology company boards.

Dave Watts, Chief Financial Officer

Dave Watts became the Chief Financial Officer of Vanquis Banking Group in 2023. He has nearly 30 years of experience with HSBC, where he held various global, regional, and country-level financial roles. Notably, he served as the CFO of HSBC UK Bank plc from 2017 to 2021 and also held the position of CFO for HSBC's European operations. Watts began his professional career as a Chartered Accountant at KPMG and is also a qualified treasurer.

Michael Mustard, General Counsel & Company Secretary

Michael Mustard serves as the General Counsel and Company Secretary for Vanquis Banking Group Plc. He was appointed as Company Secretary on November 6, 2024.

Richard King, Group Corporate Communications Director

Richard King is the Group Corporate Communications Director at Vanquis Banking Group (formerly Provident Financial Group). He possesses extensive experience in corporate communications, media relations, and public affairs, having held roles at notable organizations such as Legal & General, HM Treasury, and Barclays Global Investors. His expertise includes crisis communications and reputation management. King earned a BA Hons in History & Politics from The Manchester Metropolitan University.

Jem Walters, Chief Technology Officer

Jem Walters is the Chief Technology Officer for Vanquis Banking Group Plc. He is also a co-founder and CTO of Snoop, a FinTech startup that utilizes Open Banking and artificial intelligence to analyze customer transactions and spending habits. Snoop is now one of Vanquis Banking Group's brands. Walters has over 20 years of experience in technology leadership within the finance and banking industry, having contributed to the growth of Virgin Money from its startup phase in 1995.

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The key risks for Provident Financial Holdings, Inc. (symbol: PROV), a financial services company operating as Provident Savings Bank, F.S.B., primarily serving consumers and small to mid-sized businesses in Southern California, are as follows:

1. Credit Risk: As a banking institution, Provident Financial Holdings is exposed to the risk that borrowers may default on their loans. The company's primary operations involve investing deposited funds into various types of loans, including single-family, multi-family, commercial real estate, construction, commercial business, and consumer mortgages. This risk is evident in the financial reporting of similar banking entities, which show significant provisions for credit losses related to loans.
2. Interest Rate Risk: Changes in interest rates can significantly impact the bank's profitability by affecting its net interest margin, which is the difference between interest earned on assets and interest paid on liabilities. The bank's financial performance is closely tied to the average cost of its deposits and borrowings, and fluctuations in these rates, alongside the rates earned on its loan portfolio, directly influence its earnings.
3. Liquidity Risk: The ability of Provident Financial Holdings to meet its financial obligations, such as deposit withdrawals and loan disbursements, depends on maintaining adequate liquidity. While not explicitly detailed for PROV in the provided snippets, managing economic risks, including liquidity risk, is a standard practice for financial institutions like Provident Financial Services, Inc., which operates a similar banking model.

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Provident Financial plc, now operating as Vanquis Banking Group plc since March 2023, primarily serves customers in the United Kingdom with sub-prime or non-standard credit histories. The company's main products and services include credit cards, unsecured personal loans, and secured vehicle finance.

The addressable markets for these products in the UK are as follows:

• Credit Cards (UK): The overall UK credit card market is substantial. In 2023, credit card issuance generated an estimated £13.8 billion in revenue. The total value of credit card transactions in the UK fluctuated between £19 billion and £21 billion between June 2022 and March 2023, reaching £20.7 billion as of June 2023. In 2024, UK consumers spent £249 billion on credit card transactions, and this figure is projected to rise in 2025. The UK credit card market is projected to reach over £295 billion in 2025, a 7.5% increase from £282 billion in 2024. Provident Financial (now Vanquis Banking Group) focuses on the "non-standard lending market" and "mid-cost and near-prime credit markets". The financially under-served market in the UK, which includes those who may have difficulty accessing credit from mainstream lenders, was estimated at 20.2 million adults in 2022. This represents a 50% increase from 2016. An additional 8.9 million adults exhibit signs of financial fragility. This segment is a key part of the addressable market for Vanquis Bank's credit cards.
• Unsecured Personal Loans (UK): The UK lending market for higher-risk individuals (sub-prime customers) contracted by approximately 34% since 2019. However, the sub-prime loans industry in the UK is experiencing a resurgence in 2025 due to economic shifts and growing demand for accessible financial products. For borrowers with low credit scores or inconsistent financial histories, these loans can include personal loans.
• Secured Vehicle Finance (UK): Moneybarn, a brand of Vanquis Banking Group, offers secured vehicle finance for new and used cars, motorbikes, and light commercial vehicles. Provident Financial acquired Moneybarn in 2014, noting significant growth potential and considerable unmet demand in the non-standard car finance market. The market for non-prime car finance is a key focus for Moneybarn.

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Here are 3-5 expected drivers of future revenue growth for Provident Financial (PROV) over the next 2-3 years:

1. Net Interest Margin (NIM) Expansion: Provident Financial anticipates continued growth in its net interest margin. This is supported by a strategy to increase the yield on interest-earning assets and manage funding costs effectively. The company's net interest margin increased in the first quarter of fiscal 2026 to 3.00% and management expects further opportunities for expansion.
2. Disciplined Loan Portfolio Growth: The company has adopted a more growth-oriented short-term strategy for balance sheet management, emphasizing disciplined loan growth. This includes focusing on expanding lending portfolios, particularly in single-family, multi-family, and commercial real estate loans.
3. Upward Repricing of Adjustable-Rate Loans: A portion of Provident Financial's loan portfolio consists of adjustable-rate loans that are repricing at higher interest rates. For example, approximately $107 million of loans are expected to reprice upwards in the December 2025 quarter, contributing to increased interest income.
4. Improving Deposit Composition and Lower Funding Costs: Provident Financial aims to enhance its community banking operations by improving the composition of its deposit base and reducing reliance on higher-cost retail time deposits. This strategic effort to manage and potentially lower funding costs contributes to net interest margin expansion and overall revenue growth.

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Capital Allocation Decisions for Provident Financial Holdings, Inc. (PROV)

Share Repurchases

• On January 23, 2025, Provident Financial Holdings, Inc. authorized a new stock repurchase program allowing for the repurchase of up to approximately 334,773 shares, representing 5% of its common stock, over a one-year period starting January 24, 2025.
• In fiscal year 2025, the company repurchased 285,170 shares of its common stock at an average cost of $15.04 per share. As of June 30, 2025, 217,028 shares remained available for future purchase under the current program.
• Approximately 197,000 shares of common stock were repurchased in fiscal year 2024.

Share Issuance

• As of March 31, 2025, there were outstanding stock options to purchase 223,000 shares of the Corporation's common stock, a decrease from 410,000 shares as of March 31, 2024.

Outbound Investments

• Provident Financial Holdings' net change in long-term investments was $20 million in 2025, $24 million in 2024, and $29 million in 2023, reflecting net cash flows from the sale and purchase of investments with maturities greater than one year.
• The company had a net change in long-term investments of $36 million in 2022.
• In 2021 and 2020, there were net sales of long-term investments, with a net change of -$107 million and -$25 million respectively.