PCF Group PLC has reported that PCF Bank has received approximately £51m of retail deposits to date since it began its retail deposit-taking operations on 27th July 2017.
As a result, the bank has been able to deliver interest expense and facility cost savings due to the diversity of its funding model.
The announcement was made in a trading update for the year ended 30th September 2017, ahead of the bank’s final results on 5th December.
Trading highlights included new business originations across the bank totalling £74.1m, up 19.3% on the same period last year (11 months ending 31st August 2016: £62.1m).
This was largely driven by SME lending.
Scott Maybury, CEO of PCF Group, said: “I am pleased to announce a strong pre-close trading update.
“The successful launch of PCF Bank’s retail deposit products has coincided with a number of new business initiatives, utilising the cheaper cost of funds to expand the bank’s addressable lending market.
“Our success in delivering these projects is testament to the team at PCF and provides momentum as we enter the new financial year and continue our strategy of scaling the portfolio and generating profitable and sustainable growth.
“There is excellent potential for growth in our proven, existing markets in the short and medium term; and over the next three years, asset diversification will provide greater acceleration in portfolio growth.
“This has been a year of great achievement, marked by our arrival as a new entrant bank and we look forward to reporting our full-year results in December.”