LONDON (Alliance News) - Manx Financial Group PLC Wednesday said it swung to an annual pretax profit after a 49% rise in its net interest income and an increase in the number of its customers.
Pretax profit was GBP1.1 million for 2013, versus a GBP700,000 pretax loss in 2012, with net interest income rising to GBP8.3 million from GBP5.5 million. Loans and advances to customers grew to GBP75.8 million from GBP58.5 million.
The swell in net interest income, which is the difference between the revenue received from interest assets such as loans and the interest paid out to service liabilities on own borrowings, was largely down to its Isle of Man bank, Conister.
Executive Chairman Jim Mellon said the UK's economic recovery will lead to increased competition as the high street banks begin to lend more, but he remained confident on Manx Financial's prospect.
"Competition will inevitably increase slightly as more liquidity returns to the market but as the high street banks still have considerable balance sheet pruning to complete before they will be Basel III compliant, it will still be some time before they can start lending in earnest," Mellon said in a statement.
"Thus the outlook for the group is very promising with the 2013 second half profit of GBP810,000 following the GBP260,000 reported at the interim stage. I would expect this trend of increasing profits to continue in the year to come," he said.
Manx also said it is keeping a close eye on the development of the payment card services industry. It said it has reviewed "various opportunities" in relation to Conister Card Services, which manages payment card services for the group, but said the long-term profitability and return on equity of such services have been "too subjective" to accept. However, it said it will continue with its Isle of Man-based project, which could be rolled out to the UK if successful.
Manx Financial shares were Wednesday quoted at 18.10 pence, down 1.5%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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Manx Financial (MFX)