Wednesday 5 June 2019 3:23 pm

Challenger bank PCF posts profit surge and adds new business

AIM-listed UK bank PCF posted a 57 per cent profit surge as its lending portfolio continued to grow rapidly in the first half of the year.

The specialist lender said profit rose to £10.1m in the six months to the end of March.

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The bank also entered the bridging property finance market earlier this year, which will contribute to profit from 2020, and also acquired media finance provider Azule.

It said total new business had grown 75 per cent to £121m over the six months, while the bank’s portfolio grew 54 per cent to £276m.

Chairman Tim Franklin said the bank was on track to meet its target of a lending portfolio of £350m by 2020 “well ahead of schedule.”

The bank said it now had more than 4,500 savings customers and retail deposits of £204m, almost double the £108m in 2018.

Chief executive Scott Maybury said: “This has been another highly successful period for the group.

“We set ourselves ambitious targets and are on track to deliver these ahead of schedule.”

He added: “An acquisition and a new property lending initiative were announced in the period and organic growth in our established markets remains strong.”

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In February the bank raised close to £10m from a share placing to grow its vehicle and asset finance operations and to complete the launch of its property bridging finance pilot scheme.

The funding, it said, was needed to develop new lines of business to hit a fresh £750m lending portfolio target by September 2022.