PCF Group loan quality improves as Covid-19 disruptions ease

Specialist bank PCF Group said on Friday that loan quality had improved as a result of Covid-19 disruptions easing of late.

PCF stated its continued focus on lending to "better quality customers" had led to new business volumes being in line with management's adjusted targets during the first five months of its current trading year.

The AIM-listed firm said new business originations in the first five months of the current year totalled £104.0m, down from £127.0m a year earlier, including a record single transaction of £6.9m placed by Azule.

PCF's total loan book grew to £440.0m from £392.0m, while the number of customers in forbearance continued to reduce, with their obligations currently standing at £20.0m - less than 5% of the company's portfolio.

Chief executive Scott Maybury said: "While the outlook remains volatile and the exit route from the pandemic remains uncertain, it is essential that we focus on loan book performance and protecting the strong franchises we have in our markets. We remain confident that we are well placed to take advantage of opportunities in more prosperous times."

As of 0900 GMT, PCF shares were up 1.49% at 23.85p.