MARKET TALK: Provident Financial 1H Beats Expectations - KBC

27th Jul 2010 09:39

0839 GMT [Dow Jones] Provident Financial's (PFG.LN) GBP54 million pretax profit for the first half exceeds expectations says KBC Peel Hunt. It was helped by higher contribution from Vanquis Bank says says KBC. "While growth remains moderate we consider that management are pursuing the correct strategy that will allow the group to take advantage of what we consider to be a structural growth opportunity, driven by the absence of credible competition in the subprime market, when economic conditions are right," says KBC. It adds that Provident maintains its cautious approach to lending and a robust balance sheet. Buy rating, 975p target. Shares -7.9% at 812p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 27, 2010 04:39 ET (08:39 GMT)