PCF Bank has released its preliminary results for the year ended 30 September 2019, which revealed record profits and a portfolio growth of 55% to £339m.
The board said the full year results are in line with market expectation and the return on equity targets puts them ahead of their original plan set in 2017.
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Results showed new business originations are up 86% to £276m in comparison to £148m in 2018. New business origination for ‘own portfolio’ increased by 50% to £222m, in comparison to £148m in 2018.
Results also highlighted £54m of ‘placed’ Azule new business origination generating £1m of broker commission income.
The acquisition of Azule was completed in early November 2018 and is performing ahead of expectation according to the results, generating a total of £69m of originations in the 11 months of ownership.
Retail deposits jumped from £191m in 2018 to £267m this year, with over 6,250 retail deposit customers.
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By GlobalDataTim Franklin, chairman of PCF Bank, said: “This has been a very successful year for PCF Bank. I am delighted to report strong lending growth, increased profitability and earnings per share improving by 35% to 2.7p.
“We are close to our £350 million portfolio target a year ahead of plan and our return on equity is ahead of the 12.5% target expected at that same point. This has been achieved largely in the prime segments of our existing lending markets,” he added.
The report also showed operating income up 51% to £22.2m in comparison to £14.7m in 2018.
Statutory profit before tax was up 54% to £8m in comparison to £5.2m in 2018.
“We recognise that there is strength in diversification and during the year we broadened our income streams by adding new business lines through the acquisition of the broadcast and media asset finance specialist, Azule, and the launch of a property bridging finance division,” continued Franklin.
“While the year ahead may see some weakening of wider economic activity, we feel we are well placed as a specialist bank to deliver our strategic objectives and provide strong shareholder returns.”
