Troubled Provident finds CEO Le May on its own doorstep

The struggling doorstep lender Provident Financial (Other OTC: FPLPF - news) will take the unusual step on Friday of moving its acting chairman into the role of permanent chief executive.

Sky News has learnt that Provident, whose brands include Vanquis Bank and Moneybarn, will appoint Malcolm Le ‎May, one of the City's most experienced figures, as its new CEO.

The appointment, which sources said was due to be announced on Friday morning, will come nearly six months after Peter Crook was ousted as the company's chief executive following a savage profit warning and regulatory probe.

Mr Le May, whose CV includes stints at the investment banking operations of Barclays (LSE: BARC.L - news) , ING Barings and UBS (LSE: 0QNR.L - news) , ‎has been on Provident's board since 2014.

In November, however, he stepped up to become interim executive chairman following the sudden death of Manjit Wolstenholme.

A source said that Mr Le May had impressed boardroom colleagues since then to the extent that they asked him to consider running the company full time.

Leading shareholders Invesco Asset Management and Woodford Investment Management, which own roughly 45% of Provident between them, are said to have given their blessing to the move.

One City source said that other investors were likely to welcome the appointment of such a senior figure to lead Provident's turnaround, despite Mr Le May's presence on the board for four years.

The City regulator, which is conducting two separate investigations into Provident's activities, is also likely to have approved Mr Le May's appointment.

Stuart Sinclair, the financial services group's senior independent director, is expected to become acting chairman while the board seeks a long-term replacement.

Mr Le May is also likely to slim down his broader portfolio of existing business commitments, which include roles on the boards of IG Group Holdings, the financial spread-better, and Hastings Group (Frankfurt: 29716880.F - news) , the insurer.

Provident has endured a torrid six months, which began with news that this year's profits would fall by about £180m and the withdrawal of its interim dividend.

That announcement left Provident nursing one of the London market's biggest-ever one-day share price falls.

The Financial Conduct Authority has launched probes into Vanquis Bank, which targets consumers who have been rejected for credit provision by mainstream lenders, and Moneybarn, Provident's car finance arm.

The company has been in active discussions with the regulator about reaching settlements in relation to both inquiries, which City analysts expect to result in at least one swingeing fine.

Its shares have been volatile amid speculation that it will need to raise fresh equity in order to deal with any penalties and transform its performance.

Since the summer, Provident has been focused on rebuilding its doorstep lending business by employing an additional 300 managers whose role is to visit the homes of more than 530,000 home credit customers.

Last month, the company said‎ it continued to "actively monitor its capital and liquidity positions" as it warned that its consumer credit division would report a loss of about £120m this year.

It is due to announce full-year results later this month.

Provident, which has also scrapped its full-year dividend in a bid to conserve capital, has seen its shares fall by 75% over the last year.

They closed on Thursday ‎at 670p, giving the company a market value of almost exactly £1bn.

A Provident spokesman declined to comment.