DFCH has reported impressive results for 2021 against a challenging background of supply chain issues and macroeconomic uncertainty. The company has already updated the market on its strong start to 2022, with record originations in Q1 2022. Potential participation in the British Business Bank’s ENABLE scheme and/or the issue of Tier 2 capital should enable DFCH to achieve an £800m loan portfolio without the need for further equity issuance. We forecast substantial loan growth throughout the forecast period and a 12.9% Return on Tangible Equity in 2025.
▪ Impressive 2021 performance. A doubling of the loan book, combined with a complete replacement of wholesale funding with retail deposits (in late 2020), strong cost control and low cost of risk, has led to a reduction in pre-tax losses to £3.7m in 2021 from £13.6m in 2020.
Distribution Finance Capital Holdings plc (LON:DFCH) is UK specialist commercial lending and personal savings bank. From straightforward savings to practical finance solutions, our aim is to help customers manage and grow their business or savings. Founded as a specialist commercial lender in 2016, DF Capital was authorised as a bank in September 2020.