Update: Woodford supports Provident Financial in rebuilding its reputation after 'painful chapter'

Reached 22-year low on Monday

Neil Woodford, manager of the £7bn Woodford Equity Income fund, has said he expects Provident Financial, one of his key holdings, to "return to normal" throughout the remainder of this year after "completely disproportionate" market reaction to a mis-selling probe.

Shares in Provident Financial jumped 70% yesterday after the sub-prime lender confirmed a rights issues of £331m and settled with the Financial Conduct Authority (FCA) over an investigation into claims it was mis-selling or mis-pricing a repayment option plan on its Vanquis credit card. The group's shares fell 12% to a 22-year low on Monday, but bounced back 70% yesterday and were trading flat today at around £10.00. However, Provident's shares remain well off levels seen last summer when they were trading at £18.52 before plummeting 70% to £5.89 after the lender issued a third profit...