Investors in specialist bank PCF Group were told that the company was trading strongly and in line with management expectations on Friday, as they gathered for its annual general meeting in London.
The AIM-traded firm's chief executive, Scott Maybury, reported that new business originations in the five-month period to 28 February were 93% ahead of the comparative period last year, at £54.5m.

He also claimed that the quality of originations had been maintained.

"The lending portfolio has grown to approximately £172m compared to £127m at this time last year," Maybury told shareholders.

"Our medium-term targets for the group remain unchanged at 12.5% return on equity and a lending portfolio of £350m 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 PCF's banking operations reinforced the board's strategy to utilise retail deposits, with their lower interest cost, to fund growth in its existing markets, he explained.

Maybury said the launch of new prime terms for its existing products had been "enthusiastically" received by 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 £81m at 28 February 2018."

The group had made good progress in its treasury strategy, Maybury added, 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."

PCF would update the market further on 23 May, when it would release its interim accounts for the six month period to 31 March.

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