Provident Financial Holdings Reports Decline in Net Profit Margins, Raises Questions on Premium Valuation and Dividend Narrative

Provident Financial Holdings reported a net profit margin of 15.2%, down from 18.8% previously. Despite this, analysts project a rise in profit margins to 21.4% over the next three years, driven by operational improvements and repricing benefits. The company's stable asset quality, conservative underwriting, and strong capital position also support a reliable dividend narrative.