Providian Announces Sale of $447 million in Higher Risk Credit Card Accounts

SAN FRANCISCO – Providian Financial Corporation (NYSE: PVN) today announced that it has entered an agreement to sell a portfolio of non-core, higher risk credit card loans having a total loans receivable balance of approximately $447 million held by its bank subsidiary, Providian National Bank. The Company expects that the sale of these loans will improve the credit quality of its portfolio by significantly reducing reported loans having FICO scores below 600. The sale is expected to have a modestly beneficial impact to earnings in the first quarter.

As of January 1, 2005, these loans were reclassified from “loans receivable” to “loans held for sale” on the Company’s balance sheet. The reported and managed delinquency and credit loss rates for the month of January 2005 in the Company’s report on Form 8-K dated February 15, 2005 will reflect the reclassification of such loans as of January 1, 2005. The Company expects to provide additional information on the loan sale at its Investor Day presentation on March 3, 2005.

About Providian
San Francisco-based Providian Financial Corp. (www.providian.com) is a leading provider of credit cards to mainstream American consumers throughout the United States. By combining experience, analysis and technology, Providian seeks to build long-lasting relationships with its customers by providing products and services that meet their evolving financial needs.