The chief executive of Manchester-headquartered commercial lending specialist DF Capital has said the bank started 2021 in an "enviable position" after getting through 2020 with "no pandemic-related legacy".
DF Capital, which received full authorisation as a bank in September 2020, has also reported its financial results for the year to December 31, 2020.
They show that the bank's revenue dropped from £12.6m to £11.5m while its pre-tax losses went from £13.5m to £13.6m over the same period.
The accounts come after the group launched a range of retail savings products, raising over £145m in the 12 weeks to the end of 2020, which enabled the early repayment of expensive wholesale funding and other debt.
The group started 2021 entirely funded by retail deposits, which transformed its net interest margin from less than 2% to approximately 6%.
The loan book "has had a strong start" to 2021, exceeding £193m at March 31, 2021, up 70% from December 31, 2020.
The group completed a £40m fundraise in February 2021 to "unlock our growth ambitions" and enable it to focus on accelerating its business plan.
Chief executive Carl D’Ammassa said: "The impact of the global pandemic made 2020 a challenging year for the group.
"However, we start 2021 in an enviable position and on more solid foundations having navigated the impact of Covid-19 well.
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"We have no pandemic-related legacy and have protected our lending franchise throughout the year. Receiving full authorisation as a bank will be transformational for the group’s profitability.
"We’ve seen strong momentum since authorisation that has continued well into the current year, which gives us confidence in the demand for our products and services as well as the delivery of our strategic plan.
"The group is currently performing in line with the board’s expectations.
"Whilst the economic environment remains uncertain, the strong start in Q1 2021 gives us early confidence in achieving run-rate profitability during Q4 2021."
