AIM-listed specialist lender PCF Bank updates the market for the year ended 30 September 2018.
PCF reports that trading is in line with market expectations. New business originations are 75% ahead of last year at £148m (2017: £85m).
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PCF’s lending portfolio is up 50% to approximately £219m compared to £146m at 30 September 2017.
It remains on target to grow its lending portfolio, through organic growth in existing products, to £350m by September 2020.
The months of August and September 2018 were consecutive record new business origination months for PCF.
In July last year PCF rolled out its retail banking operation to attract consumer deposits.
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By GlobalDataPCF Bank retail deposits hit £190m
By end September 2018 retail deposits grew to £190m from £53m in September 2017.
PCF is also a participant in the Bank of England’s Term Funding Scheme.
On 8 October PCF acquired specialist finance provider Azule. Azule provides funding and leasing services for the broadcast and media industry.
Azule is being purchased for an initial consideration of £4.1m, including £3.3m in cash and the rest in PCF shares. An additional earn-out of up to £1.5m over two years will be paid depending on performance criteria.
PCF Bank acquires Azule
In the year ended 30 June 2018, Azule generated £54.3mln of asset finance, reported revenues of £3.1m and a profit before tax of £0.8m.
Scott Maybury, Chief Executive of PCF, commented: “A diversified banking model is proving a great strength and our first full year as a bank has been extremely encouraging. We have made excellent progress against ambitious targets.
“Our focus on organic growth through existing lending markets has now been supplemented with an earnings enhancing acquisition.
PCF reports final results on 5 December.
For the six months to end March, PCF reported a profit before tax of £2.1m up 20% year-on-year.
