Provident Financial Share Discussion Threads

[jeannettetigger] 03/8/2020 07:56

HSBC set aside $13 billion for bad debts/loans due to the pandemic.

[jeannettetigger] 02/8/2020 18:09

Who knows what the unemployment rate will be in 3-6 months time up 1 million+?, these could be the people Who are not on holiday payments who will possibly default in the future.

[discodave45] 02/8/2020 16:03

Credit assessments have already been tightened and payment holidays sanctioned for those likely to default on payments so no surprises IMO and already priced in.The sun will shine after the storm has passed and year end / 2021 will see the benefits.

[jeannettetigger] 02/8/2020 15:16

I refer to any company if monies are advanced.

[riverman77] 02/8/2020 15:03

PFG don't lend to companies. How could their survival be threatened?

[jeannettetigger] 02/8/2020 14:40

Any default either to a large or small company threatens its future earnings/survival, we are in unprecedented times and who knows what is around the corner.

[riverman77] 02/8/2020 14:00

The mainstream banks won't get involved in sub prime lending as it really impacts their capital requirements and regulations are very onerous. Meanwhile a lot of the smaller sub prime lenders will be really struggling or even gone out of business. I think this puts PFG in a strong position to really dominate the sub prime market - they have the expertise, digital infrastructure and capital.

[jeannettetigger] 02/8/2020 13:06

Lenders will be scrutinising applications for credit as they know there will be a high chance of default, life is going to get a lot harder.....'you aint seen nothing yet' (Backman Turnover drive) for all you oldies!

[riverman77] 02/8/2020 12:42

Borrowing has declined for now, but will pick up when the economic impact really start to be felt later in the year.

[superiorshares] 02/8/2020 11:40

I did say if this returned to the £2 area . I would put a short on with a Target of
70p
I wont be able to do that because I doubt it will get there ?
Do I put a short on at these Levels . Maybe will wait a week or two and have a think about it.

[discodave45] 02/8/2020 11:30

RivermanCompletely agree.

[jeannettetigger] 02/8/2020 10:47

It's probably that borrowing has declined, not good news for PFG!

[riverman77] 02/8/2020 10:42

I think their loans will be surprisingly resilient. The loans are relatively small amounts and short duration. Given all the government support, and the fact that a lot of the borrowers are in receipt of benefits, I'm not expecting any huge increase in bad debts. When furlough eventually ends and unemployment goes through the roof, a lot of the existing loans will have matured. However, at that stage there should be a very strong demand for new loans, and PFG will be very well placed to meet this demand.

I would also point out that home collection now makes up a small part of their business. The majority of lending is through the digital Vanquis bank division, which has consistently performed strongly

[discodave45] 02/8/2020 10:39

From Lloyd's research: borrowing from family and friends reduced 40% during lockdown - so either borrowing generally declined or they went elsewhere to get a loan.Second highest reason for borrowing was for car purchases which was I imagine aided by the concern people have with travelling via public transport.Https://m.marketscreener.com/LLOYDS-BANKING-GROUP-PLC-4000786/news/Lloyds-Banking-Borrowing-and-lending-between-loved-ones-plummets-31034525/?utm_medium=RSS&utm_source

[jeannettetigger] 02/8/2020 09:51

On Yahoo finance today, analysts are stating there is going to be a 'surge in loan losses this year 'and that the situation is only going to get worse.

[clemoc] 01/8/2020 12:55

Dave,
Yes still in Amigo which is looking like it will fly now, but I'm really pondering this.
Amigo is a very different business model and following a recovery pattern following BOD fall out as you know.
This stock seems like a steal, but I always welcome views...

[jeannettetigger] 01/8/2020 10:11

Household income will be used to pay gas/electricity, water rates, mortgages etc.Non essential spend won't even come into the minds for people with no jobs.look at the share price! Disco you should know having bought at £1.95!

[discodave45] 01/8/2020 09:53

Think the opposite is true, restrictions/limitations on non essential household spend (pubs, cinemas, holidays abroad, etc) should reduce non-payments on loans. That said it could also mean a reduction in new customers as well.Do you still hold AMGO?

[clemoc] 01/8/2020 08:05

Surely the market provident are in is going to get divistated over the coming months with un paid loans, and surely door step loans will end due to new lock downs, I'm guessing this is why the share price is dropping as there's no idea when they can return to normal business??

[jeannettetigger] 31/7/2020 07:57

Natwest set aside billions of pounds to offset anticipation of soured loans.

[jeannettetigger] 30/7/2020 13:32

I see the IPF share price has been heading south over the last week or so. Maybe sentiment may return soon who knows.

[jeannettetigger] 30/7/2020 12:37

The Markets are looking very nervous today, banks in particular, fears of non payments on loans/debt. It Will be interesting to see how this pans out.

[jeannettetigger] 28/7/2020 15:54

diku, ohoh, DiscoDave4, Diohohku and diggerdog1 have all stop posting on CNA, I wonder why discodave45 🤔

[babycheeky] 28/7/2020 13:29

Dave old son are you not using discodave4 anymore ?