26th Sep 2019 11:35
(Alliance News) - Manx Financial Group PLC on Thursday said it is focusing on strengthening its balance sheet and growing its loan book as it heads toward the end of 2019, following a double-digit income increase in the first half.
The financial services firm said pretax profit remained flat year-on-year, at GBP1.4 million for the six months to the end of June, despite net interest income growing by 20% to GBP8.9 million from GBP7.4 million.
Impairment on loans and advances to customers multiplied to GBP1.5 million during the period from GBP365,000 reported a year ago, while personnel expenses rose by 13% to GBP3.1 million from GBP2.8 million.
Manx said it has been able to improve its net interest yield to 10.0% from 9.1% year-on-year, despite re-shaping its lending away from unsecured consumer loans.
"We have performed within expectations for the first six months as we continue to strengthen the group and bank balance sheets without compromising our profitability," said Executive Chair Jim Mellon.
"Our strategic initiatives in diversifying our geographic lending reach have accelerated with additional investment in our UK operations, centred at our Newbury office," added Mellon.
The company noted that even with the Newbury expansion its cost-to-income ratio has decreased to 59.9% from 70.6% the year before.
Turning to the balance sheet, Manx's loan book has increased by 30% to GBP170.0 million from GBP130.8 million, and the company said it expects its loan book to increase to GBP200.0 million by the end of 2019.
Manx shares were trading 2.5% lower on Thursday in London at 8.65 pence each.
By Evelina Grecenko; [email protected]
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