- Adjusted profits ahead of expectations
- Reduced capital requirement
The rebranding of Provident Financial as Vanquis Banking (VANQ) was completed in the first quarter of this year. As we pointed out when assessing its performance through 2021, the reincarnation was not simply cosmetic but was instead part of a series of measures designed to leave the lender with a lower-risk profile, perhaps at the expense of gross margins. The group had previously been forced to close its consumer credit division following a claims mismanagement scandal involving the sale of unaffordable loans to borrowers, so the refocus on “mid-cost credit” products was probably unavoidable.