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Preliminary Results for the year ended 30 September 2018

05 Dec 2018

Banking

PCF Group plc, the AIM-listed specialist bank, today announces its preliminary results for the year ended 30 September 2018. The Board is pleased to report strong trading and full year results which deliver on ambitious plans and expectations. 

Business Highlights:

  • 75% increase in new business originations to £148.4 million (2017: £84.6 million)
  • Portfolio growth of 50% to £219 million (2017: £146 million)
  • Retail deposits total £191 million (2017: £53 million) and over 3,400 new retail deposit customers welcomed to the Bank
  • Post year end acquisition of Azule Limited on 31 October 2018 • Portfolio growth and recent acquisition puts the Bank a year ahead of schedule to meet the 2020 £350 million portfolio target
  • Continued low impairment charge of 0.5% (2017: 0.5%)
  • Awarded 2018 Best New Provider by independent savings specialist, Savings Champion
  • Awarded 2018 Top New Challenger Bank by industry specialist, Leasing World

 

Financial Highlights:

  • Profit before tax up 44% to £5.2 million (2017: £3.6 million)
  • Earnings per share up 33% at 2.0p (2017: 1.5p)
  • Profit before tax and earnings per share are reported after expensing £0.27 million of one-off Azule acquisition costs
  • Recommended final dividend of 0.30p (2017: 0.19p) which, if approved, will be paid on 12 April 2019 to shareholders on the Register at 22 March 2019
  • Net Interest Margin (‘NIM’) reduced slightly to 8.2% (2017: 8.3%)
  • After-tax return on equity increased to 10.3% (2017: 8.7%)
  • CET1 capital ratio of 19.3% (2017: 26.3%)
  • £47 million (2017: £31 million) of unearned finance charges to contribute to earnings in future years

 

Tim Franklin, Chairman, commented: “This has been an excellent year for PCF Bank. We report increasing profitability and are delivering on our key strategic objectives. In the case of portfolio growth, we are a year ahead of schedule to meet our £350 million medium-term target. Our savings proposition has been well received in the market place and, supported by the new lower cost of funds, portfolio growth has been strategically positioned in the prime segment of our existing lending markets.

“Portfolio growth of 50%, in addition to an increase in earnings per share of 33% to 2.0p, against a backdrop of significant investment in our operational platform, are achievements of which we can be proud in our first full year as a bank. Subsequent to the year-end, we completed the earnings-enhancing acquisition of Azule Limited, a well-established and profitable broadcast and media equipment finance company. This acquisition is the first step in the diversification of our portfolio by both product and route to market. “We look forward to the year ahead with confidence in the Bank’s ability to deliver profitable and sustainable growth for our shareholders.”

For further information about PCF Bank please contact

020 7222 2426