AGM messages from PCF02/03/2018
PCF Group plc ("PCF" or "The Group"), the AIM-listed specialist bank, held its Annual General Meeting on Friday 2 March in London. At the AGM, Chief Executive Scott Maybury made the following statement to shareholders.
“The Board is pleased to report that trading in the first five months of the current financial year has been strong, in line with management’s expectations.
“We can report that new business originations in the five-month period to 28 February 2018 were 93pct ahead of the comparative period last year at £54.5 million (2017: £28.2 million). We are also pleased to report that the quality of originations has been maintained. The lending portfolio has grown to approximately £172 million compared to £127 million at this time last year. Our medium-term targets for the Group remain unchanged at 12.5pct return on equity and a lending portfolio of £350 million by September 2020, while asset diversification remains a goal and will follow in due course.
“The successes in new business origination in the short time since the July launch of our banking operations reinforces the Board’s strategy to utilise retail deposits, with their lower interest cost, to fund growth in our existing markets. The launch of new prime terms for our existing products has been enthusiastically received by our brokers and customers alike. We have also delivered significant IT enhancements in consumer motor finance to restore origination growth to this division and support our reputation for excellent customer service.
“Following our success in achieving the Savings Champion Award for 2018 Best New Provider, we have seen retail deposits increase to £81 million at 28 February 2018. The Group has made good progress in its treasury strategy by replacing a proportion of its more expensive wholesale debt with retail deposits and by gaining membership to the Term Funding Scheme at the Bank of England.
“Our first full year as a bank has commenced well. We have made encouraging progress against ambitious targets and our focus on expanding our addressable lending market with a proven product range will underpin our continued operational success and deliver increasing profitability. We look forward to providing a further update on 23 May 2018 when we will release our interim accounts for the six-month period ending 31 March 2018.”