Provident Financial Holdings, Inc. · NASDAQ:PROV
Provident Financial — H1 2000 Earnings Presentation
25 slides from Provident Financial's earnings presentation, 2000
Slide 1: Provident Financial
PROVIDENT FINANCIAL
Slide 2: Half year results to 30 June 2000
Provident Financial Half year results To 30 June 2000
Slide 3: Achievements to 30 June 2000
Provident Financial Achievements to 30 June 2000 Customers up to 2.9m + 17.0% Turnover up to £340.3m + 27.8% Like for like profit up to £65.1m + 6.0% Earnings per share up to 19.1p + 7.9% Dividend per share up to 10.9p + 10.1%
Slide 4: Divisional highlights
Provident Financial Divisional highlights UK home credit > Bad debt ratio improved from 8.4% at year end to 8.2% > Agents up 4.6% to 11,961 > Customers up 3.8% to 1.55m > Credit issued up 3.8% > Profit before tax up 2.4% to £60.3m
Slide 5: Divisional highlights: International home credit
Provident Financial Divisional highlights International home credit > 30 new offices opened > Agents up by 2,307 to 5,975 > Customers up from 149,000 at year end to 281,000 > Start up loss of £6.9m, up from £4.2m in H1 1999
Slide 6: Divisional highlights: Motor insurance
Provident Financial Divisional highlights Motor insurance > Record half year > Premium rates up 7% in first half > Underwriting customers up by 28% to 705,000 > Claims inflation less than premium increases > Broking benefits from price increases > Profit up 36% to £15.6m
Slide 7: Profit before tax (£m)
Provident Financial Profit before tax (£m) 1999 June like for like 2000 UK home credit 58.9 60.3 International home credit (4.2) (6.9) Insurance 11.5 15.6 Central costs (4.8) (3.9) Profit before tax 61.4 65.1
Slide 8: Half year results: UK home credit
Provident Financial Half year results UK home credit
Slide 9: Agents
UK home credit Agents 11,961 +4.6% 11,433 10,268 10,756 9,647 96 97 98 99 00 As at 30 June
Slide 10: Customers (000s)
UK home credit Customers (000s) 1,553 +3.8% 1,496 1,418 1,334 1,227 96 97 98 99 00 As at 30 June
Slide 11: Credit issued (£m)
UK home credit Credit issued (£m) 364 +3.8% 351 337 308 279 96 97 98 99 00 As at 30 June
Slide 12: Collections and bad debt
UK home credit Collections and bad debt % % 9 9 % of monies 8 8 not collected 7 7 Bad debt as a % of credit issued 6 6 5 5 4 4 3 3 96 97 98 June Dec June 99 99 00
Slide 13: Changes taking effect
UK home credit Changes taking effect > Improved support for field force and agents > More cautious lending and customer recruitment > Collection performance and bad debt ratio improved > Level of risk under control > Growth strategy remains in place
Slide 14: Half year results: International home credit
Provident Financial Half year results International home credit
Slide 15: Locations
International home credit Locations 31 22 June 2000 December 1999 15 10 3 1 Czech Poland South Africa Republic
Slide 16: Staff and agents
International home credit Staff and agents 4,020 2,787 June 2000 2,236 December 1999 1,888 522 289 Czech Poland South Africa Republic
Slide 17: Czech Republic coverage
International home credit Czech Republic coverage Usti nad Liberec Labem Chomutov Hradec Kralove Karlovy Vary Kladno Prague Opava Ostrava Plzen Svitavy Olomouc Novy Jicin Jihlava Zlin Brno Ceske Budejovice Hodonin
Slide 18: Polish coverage
International home credit Polish coverage Gdansk Olsztyn Szczecin Bydgoszcz Bialystok Gorzow Wielkopolski Torun Warsaw Poznan Siedlce Sochaczew Zielona Lodz Gora Piotrkow Radom Lublin Legnica Tryb. Kielce Ostrowiec Sw. Wroclaw Opole Czestochowa Gliwice Katowice Krakow Rzeszow
Slide 19: Customers
International home credit Customers 163,887 June 2000 98,333 December 1999 72,434 65,850 18,822 11,085 Czech Poland South Africa Republic
Slide 20: Half year results: Insurance
Provident Financial Half year results Insurance
Slide 21: Insurance: 2000 performance
Insurance 2000 performance > Record first half > Premiums up by 7% in H1, 18% in last 12 months > 10% claims inflation per policy in last 12 months > Gross written premium up by 75% to £106m > Investment fund up 10% to £316 million > Profit before tax up 36% to £15.6m
Slide 22: Underwriting customers (000s)
Insurance Underwriting customers (000s) 705 +28.2% 595 550 516 477 96 97 98 99 00 As at 30 June
Slide 23: Group prospects for full year
Provident Financial Group prospects for full year > UK home credit - bad debt ratio to stabilise at 8.2% - improved profit growth > International to trade near breakeven > Continued excellent results for insurance division > Confident of good result for year
Slide 24: Group prospects beyond 2000
Provident Financial Group prospects beyond 2000 > Insurance division - near the top of the cycle? > UK home credit - higher rates of profit growth > International division to earn profit in 2001 and rapidly progress towards substantial profitability > Confident in the future
Slide 25: Provident Financial
PROVIDENT FINANCIAL