Turning lastly to funding and the macro environment, PCF are currently only operating with new funding drawn from consumer retail deposits which have proved popular with savers who lent £53m at a blended rate of just over 2.0%. In the near future the Group are planning to extend deposit taking to business banking customers where economic to do so. In the meantime, retail deposits will continue to both pay down wholesale market debt and support new business lending. The Bank of England’s recent increase in base rates has had no impact on the existing portfolio, but future terms will reflect the higher market rates for new business.Full report is available via Capital Network website
The group announced interim results on the May 23, reporting significant progress across the business as it builds scale while at the same delivering credible financial and operational performance. These results were achieved despite the twin constraints of upfront capital investment and equity capital raised previously, nevertheless, PCF continues to grow according to its strategic plan.
PCF Group ( LON:PCF) has announced that deposit funding from retail investors, which only started in July 2017, has increased substantially again and now exceeds £100m. This compares to previous announcements of £53m at the end of September ‘17, and £81m at the end of February ’18. We estimate that compared to the last reported Group total liability dated September ‘17, the bank now only requires an additional c.£35m of deposit funding to be able to completely replace, should it be desirable to do so, all of the third party bank funding reported at that date. However, whilst funding has grown significantly since the full year results, loans to customers continue to expand also. It is likely therefore that the bank will continue with at least some sort of diversified funding for some time yet to help manage this growth.
Following the release of the 2017 full year results for the financial year to end September 2017 on the 5th December 2017, and ahead of the release of the 2017 annual report due on the 6th February 2018, we have updated our forecasts for profit and earnings for the period 2018e to 2020e.
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