Record Half Year Profits reported for Conister Bank parent company Manx Financial Group PLC (AIM:MFX)

Record Half Year Profits reported for Conister Bank parent company Manx Financial Group PLC (AIM:MFX)

Manx Financial Group PLC, the parent company of Conister Bank Limited, has announced another record set of profits in its first half-year results for 2023.

Driven primarily by Conister Bank, the Group recorded a 30% increase in pre-tax profits, to £3.0 million (up from £2.3m to June 2022).

Conister lent a record £182.6 million in the first six months of this year, £71.7 million, or 65%, ahead of the same period last year (30 June 2022: £110.9 million).

Since 30 June 2022, the net loan book has increased by £98.3 million, or 40%, to £343.3 million (30 June 2022: £244.9 million), and by a healthy £51.8 million since the year-end (31 December 2022: £291.5 million).

Deposits increased by £78.9 million to £332.5 million (30 June 2022: £253.6 million), and £28.3 million since the year-end (31 December 2022: £304.2 million).

Douglas Grant, Managing Director at Conister Bank and Group CEO of Manx Financial Group commented: “This is another set of strong results supported by our loyal Isle of Man deposit customers.

Douglas said the application for the UK Branch banking licence would allow Conister Bank to access additional liquidity in the form of non-transactional Deposit Accounts. This would complement its Isle of Man deposit-taking licence. This extra liquidity will allow the Group to achieve its lending goals ambition for the year.

He recognised that the Bank of England’s 14 consecutive interest rate increases had negatively impacted Conister’s net interest margin. “This margin erosion is clear evidence of Conister Bank passing on interest rate increases to the Island’s long-suffering savers and, indeed, it has proved very successful in attracting a significant number of new depositors.”

During these challenging times, our lending products have consistently been in high demand, with this year's lending forecast to be in the region of £0.4 billion.

Douglas said he expected market conditions to remain challenging through to the second quarter of 2024, but the economy and businesses should pick up once interest rates started to fall. “This will improve disposable income levels for corporates and individuals alike,” he advised.