British subprime lender Provident Financial (LSE:LON:PFG) has returned to a profitable position, with interim results posted on Wednesday July 27 underlining profit before tax (PBT) results of £37.3mln compared to losses of £44.7mln in 2021.
The results follow a drop in costs associated with the wind down of its “doorstep lending” segment in 2021 following controversy over its selling practices.
Interim dividends are recommended at 5p per share representing a 2.5% yield at current share prices.
Analysts at Peel Hunt read “mixed messages” in the results, noting higher-than-estimated operating costs and a 2.6% decline in credit card balances.
Looking forward, chief executive officer Malcolm Le May said: “We are all acutely aware of the potential challenges that the macroeconomic environment might present. However, we are confident that our increased focus on lower risk customer segments together with our capital strength position us well to withstand the challenges ahead.”
On the back of mixed results, PFG shares opened 5% down on Wednesday.