(Alliance News) - PCF Group PLC on Wednesday posted a net interest income rise, though profit fell in a first-half "overshadowed" by the Covid-19 outbreak.
In the six months to March 31, net interest income rose 26% year-on-year to GBP12.6 million from GBP10.0 million. Pretax profit fell by 22% to GBP2.6 million, from the GBP3.3 million the specialist bank reported in the year prior.
The company said: "The board is pleased to report a strong trading performance in the first half of the year as a whole. However, this is overshadowed in the final weeks by the Covid-19 crisis and its potential financial implications.
PCF reported an "incremental charge" of GBP1.6 million related to the Covid-19 pandemic, weighing on interim profit.
"The results include an incremental impairment charge of GBP1.6 million in the period for our expectation of the effect Covid-19 will have on the collectability of our portfolio. On an annualised basis this represents an 80 basis points increase in the relative cost of risk," PCF explained.
It added that on an underlying basis, pretax profit rose 27% year-on-year to GBP4.2 million.
"This is a satisfactory performance which was tracking towards our previous market expectation," the company said.
Chief Executive Officer Scott Maybury added: "As one might expect for a financial period affected by Covid-19, there is a nuanced picture in this set of results. What I can say with certainty, however, is that the strengths of our business model are clear to see in both normal market conditions and a more challenging environment."
PCF shares were 5.0% higher at 22.04 pence each in London on Wednesday shortly after midday.
By Eric Cunha; ericcunha@alliancenews.com
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