24th Oct 2019 11:40
(Alliance News) - PCF Group PLC on Thursday expressed confidence for future growth after reporting double-digit increase in its lending portfolio in its most recently ended financial year.
The stock was 1.9% higher in late morning trade in London at 30.56 pence a share.
The AIM-listed bank said new business originations in the year to the end of September were 51% ahead of last year's GBP148 million, at GBP223 million.
PCF's lending portfolio has grown to GBP338 million, it said, an increase of 54% versus GBP219 million a year prior, and is close to the company's GBP350 million target, a year ahead of plan.
"The strategy to diversify our asset classes and income streams is proving a great success and playing an important role in growing our lending portfolio," explained Chief Executive Scott Maybury.
PCF said its net interest margin has held up "well" in the year, at 7.9%, compared to 8.2% a year ago, despite the competitiveness of the prime lending markets for business asset finance and consumer motor finance.
The London-headquartered company said it has also continued to build on its "success" in the retail deposit market and its deposit base increased to GBP265 million from GBP191 million year-on-year.
Looking ahead, Maybury added: "While there may well be some tightening of the economic cycle over the next 12 to 24 months, given the small market share we currently enjoy, we remain confident that we can continue to grow as planned whilst maintaining our prudent appetite for risk."
PCF will report its annual results on December 4, it said.
By Evelina Grecenko; [email protected]
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