PCF diversification puts it on track to beat forecasts
Consumer and business banking business PCF Group announced on Wednesday that due to a strong trading performance over the first 11 months of its trading year it was expecting its full-year results to exceed market expectations.
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PCF, formerly Private & Commercial Finance Group, said it had received £51m of retail deposits since moving into that area at the end of July, as well as generating a 19.3% year-on-year increase in new business across the bank to £74.1m, largely driven by small and medium enterprise (SME) lending.
In the trading update, PCF also reported that it had grown its finance receivables portfolio 17.5% in the period to £141.6m as it dropped its loan loss impairment charge to record low of 0.05%.
The AIM-listed firm said the diversity added to its business by its retail deposits programme allowed the rationalisation of senior debt and interest rate swap facilities, which delivered interest expense and facility cost savings in the period.
Scott Maybury, chief executive officer of PCF, said, "The successful launch of PCF Bank's retail deposit products has coincided with a number of new business initiatives, utilising the cheaper cost of funds, to expand the bank's addressable lending market. Our success in delivering these projects is testament to the team at PCF and provides momentum as we enter the new financial year and continue our strategy of scaling the portfolio and generating profitable and sustainable growth."
"This has been a year of great achievement, marked by our arrival as a new entrant bank and we look forward to reporting our full year results in December," Maybury concluded.
As of 0825 BST, shares had advanced 9.58% to 26.02p.