PCF Group PLC loan quality improves as Covid-19 disruption eases

()  said customers in forbearance had dropped to just 5% of its loan book with lending overall rising slightly over the most recent five months.

Since the onset of the pandemic, the specialist bank and lender said it had focused on better quality customers, which had meant a drop in new loans in the five months to 28 February 2021 to £104mln from £127mln a year earlier, but of those, the number in the top four credit grades had risen to 93%.

Total loans outstanding rose to £440mln from £434mln at the end of last September helped by media specialist Azule advancing a loan of £6.9mln for a new video wall in the Disney Studio at Pinewood.

Second-hand car finance was also steady and is now the largest part of the loan portfolio at £179mln, said the update.

Loans in forbearance amounted to £20mln at end-February 2021 compared to 38% of the book at the height of the Covid-19 crisis, while customer deposits were steady at £342mln.

Scott Maybury. chief executive, said;”  While the outlook remains volatile and the exit route from the pandemic remains uncertain, it is essential that we focus on loan book performance and protecting the strong franchises we have in our markets.

“We remain confident that we are well placed to take advantage of opportunities in more prosperous times.”