Commercial lender posts new business surge ahead of bank launch

Commercial lender posts new business surge ahead of bank launch

Private & Commercial Finance Group has announced that it has increased the number of new business originations written as it prepares for its bank launch.

The commercial lender submitted a formal application for a banking licence back in June after revealing that its profits before tax were up 67%.

Private & Commercial has now reported that new business originations in the six months to 30th September 2016 had increased by 20% on the previous period.

Private & Commercial has also confirmed that its banking licence application has been progressing well and is in accordance with the year-end timetable outlined in June.

Scott Maybury, CEO of Private & Commercial, said he was pleased to announce another strong pre-close trading update.

“Our excellent levels of new business origination and performance of our portfolio are such that we expect the group's final results to be slightly ahead of market expectations, as upgraded during the course of this financial period."

Scott added that the result of the EU referendum has not impacted trading and its organic growth remained strong.

“This growth has not been at the expense of portfolio quality, as we have achieved a reduction in our loan loss provisioning charge and our portfolio is more efficient than ever.

“The diversity of our portfolio, our proven performance over an entire economic cycle and ability to increase our relatively small share of core markets should provide reassurance insofar as the current political and economic climate is concerned.

“We will continue to apply prudent underwriting standards appropriate to the economic environment and ensure that growth is managed responsibly and sustainably."

Scott concluded by explaining the potential growth the bank launch could bring to Private & Commercial.

"It is also important to recognise that the granting of a banking licence will be transformational for the growth potential and aspirations of the group, and we look forward to updating shareholders when we announce our final results on 8th December 2016."

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