SAN FRANCISCO, Calif., Aug. 4 /PRNewswire-FirstCall/ -- Providian
Financial Corporation (NYSE: PVN) today announced that it has closed on the
sale of a portfolio of approximately 435,000 credit card accounts with
$859 million in outstanding balances. The loans receivable, which represent
substantially all of the credit card loans currently owned by the Company's
Providian Bank subsidiary, have been purchased by a joint venture formed by
CompuCredit Corporation and Merrill Lynch.
"As we stated in our recent earnings announcement, the sale of this
portfolio is consistent with our efforts to prudently manage the performance
and asset quality of the Company's legacy loan portfolio as we continue the
repositioning of Providian Financial," said Joseph Saunders, Providian's
chairman and chief executive officer. "This sale further lowers the risk
profile of the Company and enhances our operational infrastructure."
In anticipation of the sale, the Company had previously classified the
portfolio as loans held for sale on its balance sheet and posted an after-tax
charge of approximately $8 million, which was reflected in its second quarter
earnings. The Company expects to transfer servicing of the portfolio by
mid-August.
About Providian
San Francisco-based Providian Financial is a leading provider of credit
cards and deposit products to customers throughout the U.S. By combining
experience, analysis, technology and outstanding customer service, Providian
seeks to build long-lasting relationships with its customers by providing
products and services that meet their evolving financial needs.
Certain statements contained in this press release are forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, which are subject to the "safe harbor" created by those sections.
Forward-looking statements include, without limitation: expressions of
"belief," "anticipation," or "expectations" of management; statements as
to industry trends or future results of operations of the Company and
its subsidiaries; and other statements that are not historical fact.
Forward-looking statements are based on certain assumptions by management and
are subject to risks and uncertainties that could cause actual results to
differ materially from those in the forward-looking statements. These risks
and uncertainties include, but are not limited to, competitive pressures;
factors that affect delinquency rates, credit loss rates and charge-off rates;
general economic conditions; consumer loan portfolio growth; changes in the
cost and/or availability of funding due to changes in the deposit, credit or
securitization markets; changes in the way the Company is perceived in such
markets and/or conditions relating to existing or future financing
commitments; the effect of government policy and regulation, whether of
general applicability or specific to the Company, including restrictions
and/or limitations relating to the Company's minimum capital requirements,
deposit taking abilities, reserving methodologies, dividend policies and
payments, growth, and/or underwriting criteria; year-end audit adjustments;
changes in accounting rules, policies, practices and/or procedures; the
success of product development efforts; legal and regulatory proceedings,
including the impact of ongoing litigation; interest rates; one-time charges;
extraordinary items; the ability to recruit and replace key personnel; and the
impact of existing, modified, or new strategic initiatives. These and other
risks and uncertainties are described in detail in the Company's Annual
Report on Form 10-K and Annual Report to Stockholders for the fiscal year
ended December 31, 2002 under the headings "Cautionary Statement Regard
Forward-Looking Information" and "Risk Factors." Readers are cautioned not to
place undue reliance on any forward-looking statement, which speaks only
as of the date thereof. The Company undertakes no obligation to update any
forward-looking statements.
NOTE: Investor information is available on Providian Financial's website
at http://www.providian.com
SOURCE Providian Financial Corporation
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Related links:
http://www.providian.com
CONTACT:
investors, Jack Carsky, +1-415-278-4977 or
Bill Horning at +1- 415-278-4602, media, Alan Elias,
+1-415-278-4189, all for Providian Financial Corporation
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