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(Reuters) – Provident Financial said on Thursday it will replace its chief executive officer and rename the company as the UK sub-prime lender repositions itself as a specialist banking group.
The lender, which announced the plans along with its fourth-quarter update, said loan origination has been strong over the past three months as people have relied on unsecured borrowing to support spending amid a deepening cost-of-living crisis cover.
The credit card business also saw strong demand in the run-up to the holiday, with credit card spending up about 2% year over year in the fourth quarter.
Chief Executive Malcolm Le May will step down in the summer and be replaced by Ian McLaughlin, chief of Bank of Ireland UK, said the London-listed company, which will be known as Vanquis Banking Group from March.
“We enter 2023 with a planned new corporate identity…a new secured product strategy with the launch of our second mortgage mortgage lending pilot and a new financing option with the approval of the large loan waiver,” Le May said in a statement.
Second mortgage loans are additional and separate loans to original mortgages.
(Corrected this story to change the time period in the second paragraph to three months, not four.)
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