PCF Group: Final Results

5th December 2017 | PCF Group plc

PCF Group plc, the AIM-listed specialist bank, today announces its preliminary results for the year ended 30 September 2017. The Board is pleased to report strong trading and full year results ahead of market expectations.

These final results constitute a 12-month period. The previous Accounting Period was an 18-month period due to a change in Accounting Reference Date. Therefore, the highlights, narrative and statement refer to a pro forma unaudited 12-month period to 30 September 2016 to provide a like-for-like comparative.

Business Highlights:

  • PCF Bank commenced banking operations on 27 July 2017
  • New customer deposits of £53.0 million were received in the period to 30 September 2017
  • Awarded 2018 Best New Provider by independent savings specialist, Savings Champion
  • 24% increase in new business originations to £84.6 million (2016: £68.4 million)
  • Portfolio growth of 20% to £146 million (2016: £122 million)
  • Record low impairment charge of 0.5% (2016: 1.0%)

Financial Highlights:

  • Underlying profit before tax up 25% to £5.0 million (2016: £4.0 million), before deducting £1.4 million of bank set-up costs
  • Statutory profit before tax of £3.6 million (2016: £3.6 million)
  • 90% increase in recommended final dividend to 0.19p (2016: 0.10p)
  • Successful raising of £10.5 million of new equity in April 2017
  • Earnings per share 1.5p (2016: 1.7p)
  • After-tax return on equity reduced to 8.7% (2016: 12.9%) following new equity issuance and investment in banking infrastructure
  • CET1 capital ratio of 26.3%
  • Overall Liquidity Adequacy Ratio of 126%
  • £31.3 million (2016: £28.2 million) of unearned finance charges to contribute to earnings in future years

Tim Franklin, Chairman, commented:

“This has been a year of significant achievement, marked by our successful arrival as a new entrant bank. These strong results are underpinned by excellent organic portfolio growth and a record low impairment rate. The quality of our portfolio and the operational platform we have built provides the ideal foundation to deliver on a strategy of accelerated growth through expansion within our existing lending markets and asset diversification through acquisition.”

“We look to the year ahead with confidence in PCF’s ability to deliver profitable and sustainable growth.”