Notes to the interim financial information

1 Basis of preparation

The financial information comprises the consolidated balance sheets for the periods ended 30 June 2006, 30 June 2005 and 31 December 2005 and the income statements and cash flow statements for the periods then ended of Provident Financial plc (hereinafter referred to as ‘the financial information’). The financial information has been prepared in accordance with the Listing Rules of the Financial Services Authority. In preparing this information management have used the accounting policies set out in the group’s 2005 financial statements. The group has chosen not to adopt IAS 34 ‘Interim Financial Reporting’ in preparing the 2006 interim report. This financial information does not constitute a set of statutory accounts under section 240 of the UK Companies Act 1985 and is unaudited. The comparative figures for the financial year ended 31 December 2005 are an extract from the group’s 2005 financial statements which have been reported on by the company’s auditors and delivered to the Registrar of Companies. The report of the auditors was unqualified and did not contain statements under section 237(2) or (3) of the UK Companies Act 1985.

This document (the 2006 interim report) will be published on the company’s website in addition to the normal paper version. The maintenance and integrity of the Provident Financial plc website is the responsibility of the directors and the work carried out by the auditors does not involve consideration of these matters. Legislation in the UK governing the preparation and dissemination of accounts may differ from legislation in other jurisdictions.

2 Segment information

Primary reporting format – business segments

* Comprises Mexico and Romania