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 said it entered the current coronavirus crisis in a strong financial position with a capital ratio of 17% at end-March and headroom on its Tier 2 capital facility.
In a trading update, the group said that, up until February, business was strong, but the impact of the coronavirus lockdown has since seen new loans issued fall 26% below target in March and by 65% in April.
Broadcast, entertainment and the transport sectors have seen the sharpest decline with around a quarter of the loanees now seeking some forbearance, it added.
PCF said, however, that its business continuity plans have proved resilient and it is still supporting SMEs, while it has £75mln of unearned future income on its balance sheet to come through.
The company noted that its loan book has grown by 45% to over £400mln as at March 31, 2020, up from £276mln at the same stage in 2019, supported by retail deposits of £340mln (2019: £204mln).
- Easing of coronavirus lockdown
- Loan demand recovers
- Economic backdrop improves back to pre-virus levels