Manx Financial Share News (MFX)

LONDON (Alliance News) - Manx Financial Group PLC said Friday profit in 2017 hit a record after both its banking and financial advisor business experienced "sustained" growth.

In 2017, pretax profit expanded to GBP2.8 million from GBP1.6 million the year prior.

"I would also like to note that not only was the 2017 first half pre-tax profit of GBP900,000 an Interim record, but also the second half 2017 pre-tax profit of GBP1.8 million is again a record, demonstrating a sustained growth," Manx Financial Executive Chairman Jim Mellon said.

"The historic dependence on our banking subsidiary, Conister Bank Ltd, is reducing as Edgewater Associates Ltd, our Independent Financial Advisory operation, has successfully integrated its recent acquisitions and is now making a significant contribution to the group's overall financial performance," Mellon added. "Our aim of becoming a diversified financial services group is coming to fruition and we are well placed to take advantage of opportunities as they arise."

Net interest income - the difference between interest received from borrowers and what is paid to savers - rose to GBP16.6 million from GBP16.0 million the year before. Net trading income also grew to GBP11.3 million from GBP8.6 million the year before.

For its Conister Bank Ltd operation the loan book rose to GBP123.4 million from GBP115.2 million.

"We have made a number of important changes during the year, the results of which are extremely encouraging in almost all areas and provide a strong platform to drive future profitability," Mellon said. "Our balance sheet is stronger than it has ever been. Not only are we constantly seeking new lending opportunities, coupled with a pipeline of potential incremental acquisitions, but we are also considering prudential ways to maximise yield from our cash balances. Wherever possible, we are implementing IT solutions and systems development to free up our staff to take on more productive roles."

"The bank, being our largest operation, continues to benefit from an excellent loan book and the new lending opportunities available in both the Isle of Man and the UK - our only constraint being access to non-dilutive regulatory capital. For this, we have a number of potential solutions which the board is currently evaluating," Mellon continued.

"EWA continues to increase its customer base and product offering, also seeking further acquisition opportunities to expand," Mellon said.

"In doing all this," Mellon added, "our underlying focus is always on an appreciation of risk and credit management and this focus is now embedded within the group at all levels. We recognise that we have operated within a fairly beneficial financial environment over the last few years. I believe that this will continue within the short term, but we recognise that there is a possibility of a future economic downturn and we must be prepared for this. But we should always remember that change provides its own opportunities."

Shares in Manx Financial were 19% higher at 13.40 pence on Friday.