Manx Financial asset value grows in 2025, profit hurt by redress costs

Mon, 18th May 2026 12:35

(Alliance News) - Manx Financial Group PLC on Monday reported net asset value growth but lower profit for 2025, and pencilled in the launch of its overdraft platform later this year.

The Douglas, Isle of Man-based financial services firm posted a net asset value of 35.4 pence per share at December 31, up by about 14% from 31.1p a year earlier. Tangible net assets per share increased to 22.2p from 17.9p.

Net interest income also rose roughly 14% to GBP37.5 million in 2025 from GBP32.8 million, which Chair Jim Mellon attributed to "balance sheet growth and an improved funding mix".

However, pretax profit fell to GBP7.3 million from GBP9.9 million, for which Manx cited a lower contribution from Business Lending Exchange Ltd and provisions for compensation schemes.

Manx has set aside a total of GBP1.5 million for consumer redress proposed by the UK Financial Conduct Authority, following the watchdog's investigation into vehicle finance. The probe also hit Lloyds Banking Group PLC, Close Brothers Group PLC, Secure Trust Bank PLC, Bank of Ireland Group PLC, Banco Santander SA and FirstRand Ltd.

Additionally, Manx made a GBP1.8 million provision in relation to subsidiary Payment Assist Ltd "following an enhancement to expected credit loss modelling and arrears management actions, which benefited the prior year comparator".

Excluding the two provisions, Manx said its normalised pretax profit had improved to GBP8.6 million in 2025 from GBP8.3 million.

Return on equity was 15.8%, compared with 22.4% in 2024, while normalised return on equity was unchanged from the previous year at 18.6%. Normalised return on tangible equity edged down to 30.9% from 32.4% the year prior but nonetheless "remained high", according to Manx.

The firm ended 2025 with a total capital ratio of 15.8%, reduced from 17.0% on-year, but "safely above its regulatory minimum". The minimum level for lenders incorporated in the Isle of Man is 10%.

Manx has proposed a final dividend of 0.5197p per share, in line with its policy to pay out 10% of attributable profit. In addition, it has proposed a bonus distribution of 5%, payable in shares only. Together, this brings the total dividend for 2025 to 0.7796p per share, versus 0.6768p in 2024.

The company's shares fell 3.4% to 27.04 pence on Monday morning in London.

It said it "remains focused on disciplined execution and remains well placed to capture attractive opportunities while continuing to manage the business prudently and efficiently".

Subsidiary Conister Bank Ltd's white label overdraft service "remains in user acceptance testing ahead of an anticipated launch later in 2026", Manx noted.

Conister in September signed a master services agreement with Weybridge, Surrey-based Fiinu PLC for the latter's overdraft technology with a minimum three-year exclusivity period.

"This collaboration aims to enhance the bank's short-term lending products, including Buy Now Pay Later and insurance premium finance offers," Conister said at the time, with the deal allowing customers of any UK bank to link a Conister overdraft to their primary current account.

Manx had previously aimed to launch the overdraft platform in the fourth quarter of 2025. In January, the company entered into two unsecured loan agreements totalling GBP2.0 million to support Conister's capital requirements.

In parallel, Manx has filed an Irish consumer credit licence application, and is expecting a decision from the Central Bank of Ireland by late summer.

By Holly Munks, Alliance News reporter

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