CEO quits as British lender Provident’s value tumbles by nearly £2bn
Its shares plummet by up to 75% and it withdraws its interim dividend as financial watchdog probes Vanquis Bank
Provident Financial had almost £2bn ($2.56bn) wiped off its value after its second profit warning in quick succession prompted the departure of CEO, Peter Crook, and suspension of its dividend. The British sub-prime lender’s earnings have been hit by unresolved problems at its door-to-door lending business, with the group’s woes compounded by its additional disclosure on Tuesday that it has halted sales of one of its products pending an investigation by Britain’s financial watchdog. Shares in Provident tumbled by as much as 75% on Tuesday, making it the biggest loser on Europe’s Stoxx index. By 1.16pm GMT the shares were down 66% at 585p. Provident first warned about problems at its door-to-door lending operation in late June, but said on Tuesday that the situation had deteriorated and the business is now set to lose between £80m and £120m this year. Founded in 1880, Provident has been trying to re-organise a door-to-door lending business that has traditionally relied on an army of ...
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