Specialist lender Provident Financial Group (LON:PFG) will be among the few highlights on what is likely to be a relatively quiet Friday for market news.
As Provident releases a third-quarter update the attention will be on the headwinds facing the Vanquis Bank unit, which is struggling with tighter regulation and the loss of its contract with Argos.
Stockbroker Shore Capital, in a recent note, highlighted that focus will be “any early signs of deterioration in credit quality”, meanwhile, the broker will also hope to see signs of improvement in the group’s home credit business.
Underwriting will be under the microscope when it comes to the Moneybarn business unit.
“Having tightened underwriting criteria in response to rising impairments the risk adjustment margin showed signs of improvement in H1 and we expect this trend to have continued during Q3,” Shore Capital said.
“Furthermore, recent competitor retrenchment from the subprime car finance space means that we expect volumes to have remained strong.”
The broker added: “Provident’s shares have come under renewed pressure recently due to broader market weakness along with concerns around the potential negative impact on the UK economy as the Brexit deadline draws nearer.”
More of the same from IHG
Interim figures in August from InterContinental Hotels Group PLC (LON:IHG) were reassuring as they showed strength across all of the company’s main markets.
The management also gave an upbeat outlook statement at the time so investors will be interested to see if the third quarter continued in this vein in an update on Friday.
In a preview, Graham Spooner, investment research analyst at The Share Centre said: “Along with all the usual key measures, such as revenue per room, any changes to the number of rooms available will be watched closely.”
He added: “China has been a good growth market in recent times so its performance will be a focus for many.
“Any news on the rolling out of the two new brands launched in the first half will also be of interest. Hints on the level of full-year profits and dividends will also be noted.”
Significant events expected on Friday October 19:
Trading updates: InterContinental Hotels Group PLC (Q3) (LON:IHG), London Stock Exchange Group PLC (Q3) (LON:LSE), Provident Financial Group PLC (Q3) (LON:PFG), Dechra Pharmaceuticals (LON:DPH), Essentra (LON:ESNT), Record PLC (LON:REC)
Economic data: UK public sector finances; US existing home sales