Private & Commercial continues to 'mobilise' bank

Investors in specialist bank Private & Commercial Finance Group were gathering for the company’s annual general meeting in London on Friday morning, with chief executive Scott Maybury set to confirm trading in the first five months of the year was in line with management expectations.

The AIM-traded firm was due to post its interim results for the six months to 31 March on 6 June.

“We report that new business originations in the five months to 28 February 2017 were 11.3% ahead of the comparative period last year at £28.2m, while portfolio quality and performance has been maintained at the previous high levels,” Maybury was set to explain.

“The portfolio of receivables has grown to £127m.”

Maybury claimed PCFG’s key profitability indicators of return on average assets and return on equity continued to meet the board’s targets.

“These medium term targets remain unchanged at 2.5% and 12.5% respectively as we build the bank and fully leverage the infrastructure.

“The group's primary objective is to complete full mobilisation of the bank and the project is on track for delivery this summer.

“The key mobilisation tasks of governance arrangements, implementing a risk, liquidity and capital management framework, key function recruitment and recovery and resolution planning are well advanced.”

Additionally, PCFG’s banking technology and infrastructure work streams had recently moved into the testing phase.

“We are very happy with the progress being made and we are working closely with the PRA and FCA to achieve the lifting of restrictions ahead of taking retail deposits.

“It is a testament to the team that the mobilisation process has not distracted from organic growth, and there are a number of new business initiatives which we will update shareholders on in more detail at the interim results.

“The banking licence will greatly expand our addressable lending market and thereby provide a significant increase in scale, with a target portfolio of £350m in three years and £750m in five years, which together with our continued focus on operational success and efficiencies will ultimately deliver superior profitability.”