Manchester bank DF Capital says it has already signed up dozens of customers to its new asset finance arm as it begins growing into larger markets.
The bank, which announced last month that it was moving into the city’s landmark Express Building, offers financial services to dealers and manufacturers across the º£½ÇÊÓƵ. It announced in its half-year results on Tuesday that it was on track to meet market expectations.
DF Capital said new loan origination reached a record high of £828m, up 16.8% on 2024. In the second quarter its loan book grew marginally ahead of expectations, reaching £728m at the period end – up 20.7% on 2024.
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Credit lines reached a record £1.4 bn, up 27.3% on 2024. The group now works with 1,491 dealer customers and 97 manufacturers.
The group said it had maintained a “robust focus on credit control”. At the end of the period 38 dealers had arrears one day past due, representing 2.5% of total dealers. That included 30 cases in legal recovery “where appropriate credit loss provisions have been made in line with the anticipated level of financial recovery”. DF Capital’s total arrears balance represented 0.9% of its entire loan book.
The group said it had continued to control its operating expenses and said it “enters the second half with continued momentum”.
DF Capital said that it had started lending at its new asset finance arm, having secured approval to conduct consumer lending from the Financial Conduct Authority.
The business will first focus on DF Capital’s motorhome and caravan dealer customers, but the group says the move “unlocks entry into significantly larger addressable markets than the group’s current offering, supporting the sales of its existing dealers and manufacturers to end-user consumer”.
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It added: “The group is pleased to report that it already has over 50 dealers signed up to originate lending, demonstrating the significant interest in these new products and services, as well as the cross-selling potential within its existing dealer network. The group expects a controlled roll-out of lending in these products over the remainder of 2025 before accelerating in 2026.”
Chief executive Carl D’Ammassa said: “We continue to demonstrate our ability to grow loan origination whilst supporting our dealer and manufacturers with more products and services than ever before. Our continued growth is underpinned by a highly digitised and scalable customer journey, enhanced by consistently top-quality support services which resonates strongly with our borrower and retail depositor base.
“The launch of our asset finance product marks an important milestone for the Group and delivers on our long-held ambition to be a multi-product lender. Given these products tap into markets which are significantly larger than our core inventory finance product, it supports our medium-term goal of hitting a loan book of £1.3bn by the end of FY28 and deliver(ing) mid-teens return on equity.
“This, in addition to the Group’s performance year to date, leaves the Board confident of achieving market expectations for the full year.”