(Alliance News) - AIM-listed specialist bank PCF Group PLC on Friday said that trading in the first five months of financial 2020 was strong and in line with management expectations.
In its annual general meeting statement, the company said new business origination for the period to the end of February was GBP127 million, up 30% from GBP98 million the same period the year before, with 79% of the originations being in the bank's prime credit grades.
PCF's lending portfolio grew by 55% to GBP395 million from GBP255 million, driven by a 71% rise in retail deposits to GBP346 million from GBP202 million.
In other business lines, Business Finance volumes for the period increased by 5% year-on-year with a larger proportion of the Azule broadcast and media equipment written on the bank's balance sheet.
Looking ahead, PCF said it has continued to invest in its operating platform, infrastructure and human resources, to prepare itself for meeting its medium-term target of GBP750 million portfolio by September 2022.
In addition, the bank's medium-term target for a return on equity of 15% remains in place.
"The world economy faces increased economic concerns over Covid-19 and there remains uncertainty over the UK's transition to an independent trading nation. It is therefore important we maintain our cautious risk appetite and remain proactive towards these challenges," said Chief Executive Scott Maybury.
PCF Group will publish its interim results on June 3.
Shares in PCF Group were down 1.7% at 29.50 pence on Friday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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