Shares in Distribution Finance Capital jumped 8% to 64.03p after the specialist bank said full-year profit would land materially ahead of market expectations.
The lender, which funds manufacturers, dealers and distributors across the UK, pointed to strong loan book growth and rising demand for newer products as it set out a confident update for the first half.
New loan origination is expected to close the six months to 30 June at around 1 billion pounds, a record and up about 21% on the same period last year.
The aggregate loan book is set to exceed 915 million pounds, more than 25% higher than a year earlier.
DF Capital said it expected to report pre-tax profit of at least 13 million pounds for the half, delivering an annualised return on required equity above 17%.
Its asset finance arm is building momentum, particularly in the static caravan and holiday park sectors, where the loan book is expected to reach almost 40 million pounds, nearly tripling since the start of the year.
That growth has been driven by a wider network of dealers authorised to introduce customers, alongside a simpler digital application process the company expects to fuel further demand.
The bank said portfolio quality remained exceptionally strong despite the wider economic backdrop, with its cost of credit risk running well within its target of below 1%.
It pointed to its multi-product strategy and a continued shift towards longer-dated lending in asset and structured finance as sources of additional near-term benefit.
The company struck a cautious note on the broader economy and the potential effects of any downturn, but said it remained confident about its prospects.
Chief executive Carl D'Ammassa said the group was diversifying its lending and had again navigated economic challenges well, leading to lower-than-expected impairments.
He added that the multi-product strategy was now bearing fruit and left the company well placed to hit its targets for 2028 and 2030.
