February 27, 2018 / 7:35 AM / 6 months ago

BRIEF-Provident Financial Says ‍FY Statutory Loss Before Tax Reduced By 135.8%

Feb 27 (Reuters) - Provident Financial Plc:

* ‍SETTLEMENT AGREED WITH FINANCIAL CONDUCT AUTHORITY (FCA) ON VANQUIS BANK’S REPAYMENT OPTION PLAN (ROP) INVESTIGATION​

* ‍TOTAL ESTIMATED COST OF SETTLEMENT OF £172.1M REFLECTED IN 2017 FINANCIAL STATEMENTS COMPRISING CUSTOMER RESTITUTION IN FORM OF BALANCE REDUCTIONS AND CASH SETTLEMENTS OF £127.1M, OTHER ESTIMATED COSTS AND PROVISIONS OF £43.0M AND A FINE LEVIED BY FCA OF JUST UNDER £2.0M.​

* ‍FULLY-UNDERWRITTEN RIGHTS ISSUE LAUNCHED TO RAISE APPROXIMATELY £300M NET PROCEEDS (GROSS PROCEEDS OF £331M LESS EXPENSES OF £31M)​

* FY ‍ADJUSTED PROFIT BEFORE TAX IN 2017 REDUCED BY 67.3% TO £109.1M​

* ‍FY STATUTORY LOSS BEFORE TAX REDUCED BY 135.8% TO £123.0M​

* ‍GROUP’S COMMON EQUITY TIER (CET) 1 RATIO OF 14.5% AT 31 DECEMBER 2017 (2016: 21.9%) REFLECTS FULL PROVISION FOR ESTIMATED COSTS OF FCA INVESTIGATIONS​

* ‍INTERIM DIVIDEND WAS WITHDRAWN IN AUGUST 2017 (2016: 43.2P) AND NO FINAL DIVIDEND IS PROPOSED IN RESPECT OF 2017​

* ‍HOME CREDIT RECOVERY PLAN IS ON-TRACK AND GROUP’S REGULATORY AGENDA FOCUSED ON CUSTOMER FIRST WILL UNDERPIN DELIVERY OF SUSTAINABLE GROWTH

* ‍VANQUIS BANK WILL BE WORKING WITH FCA ON A PLAN TO RESUME SALES OF ROP TO NEW CUSTOMERS​ Source text for Eikon: Further company coverage: (Reuters.Briefs@thomsonreuters.com)

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