Another record-breaking year for DF Capital as bank triples pre-tax profit

Carl D'Ammassa

Manchester-based specialist savings and commercial lending bank, DF Capital, has achieved another record year of financial performance as it published its audited annual results for the year ending December 31, 2023.

The bank, which provides working capital solutions to dealers and manufacturers, reported a pre-tax profit of £4.6m, up from £1.3m versus the prior year, and achieved another record for new loan originations which equated to £1.2bn.

Gross revenues of £60.350m were up on the previous year’s £26.842m, and net income, after interest expenses, was £38.104m up from £20.431m in the prior year.

The bank’s commercial lending products are provided either in partnership with manufacturers on a programme basis to their dealer network, or through direct relationships with dealers.

During 2023, the group added 330 new dealer facilities taking the number of active dealer facilities to 1,182.

Throughout the year, the bank maintained a highly diversified mix of asset lending, achieving double-digit percentage growth in almost every sector it operates in.

Notably, the bank more than doubled its lending in the specialist automotive market in 2023 compared with the prior year.

CEO, Carl D’Ammassa, said: “2023 has been a year of significant progress for us.

“We have started 2024 well and see opportunities for further growth in our core lending product as well as new product adjacencies.”

He added: “Becoming a multi-product lender underpins our strategy to scale the bank and achieve mid-to-high teen returns over the medium term.”

The bank said it is also pleased to report a positive start to Q1 2024, with loan origination up around 22% on prior year at approximately £337m (Q1 2023: £270m), loan book increased to more than £610m, up more than £100m on prior year (Q1 2023: £505m); which marks 11 consecutive quarters of loan book growth.