What it does:
It lends to consumers and small and medium-sized companies wanting to buy cars, commercial vehicles, engineering equipment, motorhomes and horse boxes.
The bank recently extended its reach to the broadcast and media industry by agreeing to buy Azule Limited for up to £5.6mln.
How it's doing
The specialist business bank reported a 26% increase in new loan originations to £153mln for the six months to end-March 2020, with the loan book 18% higher at £401mln and backed by £340mln of retail deposits.
Under the impact of the coronavirus pandemic, lending volumes in April and May were 52% below target, with the business finance division the most affected.
The bank took a £1.6mln charge for coronavirus-related impairments in its first-half numbers, which meant profits were 21% lower at £2.6mln, all of which was due to the impairment charge.
PCF said customer forbearance was being granted to loans worth £138mln as of May 29, or 34% of its portfolio, and forward guidance was withheld until there is more clarity on the situation.
What the chief executive says
“As one might expect for a financial period affected by COVID-19, there is a nuanced picture in this set of results,” said CEO Scott Maybury in June.
“What I can say with certainty, however, is that the strengths of our business model are clear to see in both normal market conditions and a more challenging environment.”
- Easing of coronavirus lockdown
- Loan demand recovers
- Economic backdrop improves back to pre-virus levels