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(Sharecast News) - Manx Financial Group reported a fall in statutory profit for 2025 on Monday, although underlying earnings improved as net interest income rose and the group grew its lending book and customer deposits.
The AIM-traded financial services group, which includes Conister Bank, said reported profit before tax fell to 7.3m for the year ended 31 December, from 9.9m in 2024.
The decline reflected a weaker contribution from The Business Lending Exchange, a 1.3m provision linked to the Financial Conduct Authority's review of discretionary commission arrangements on legacy UK car loans, and the prior-year benefit of a 1.8m provision release at Payment Assist.
Normalised profit before tax rose to 8.6m from 8.3m, while net interest income increased 14.3% to 37.5m, driven by balance sheet growth and an improved funding mix.
Operating income rose to 37.3m from 34.4m.
Net assets increased 16.7% to 43.6m, while net assets per share rose to 35.4p from 31.1p.
Tangible net assets per share increased to 22.2p from 17.9p.
The group's net loan book grew 9.5% to 407.9m, while total assets rose 12.8% to 561.3m and customer deposits increased 11.7% to 452.5m.
Basic earnings per share fell to 5.33p from 6.87p, but normalised basic earnings per share rose 10% to 6.28p.
Return on equity declined to 15.8% from 22.4%, while normalised return on equity was maintained at 18.6%.
The total capital ratio stood at 15.8%, down from 17.0%, but remained above regulatory requirements.
Executive chair Jim Mellon said net interest income growth reflected "both balance sheet growth and an improved funding mix".
The board proposed a basic dividend of 0.5197p per share, in line with its policy of paying 10% of profit attributable to shareholders, alongside a bonus scrip-only distribution equivalent to a further 5%, taking the total dividend to 0.7796p per share.
Manx said Conister Bank's gross loans rose 11.7% to 420.3m, while deposits increased by the same percentage to 452.5m.
The group said its planned Conister Overdraft product remained in user acceptance testing ahead of an expected launch later in 2026.
Payment Assist, its buy-now-pay-later subsidiary, increased annual advances to 219.7m from 170.5m and has invested in new collections software.
Manx also said it had submitted an Irish consumer credit licence application, with a decision from the Central Bank of Ireland expected by late summer.
Chief executive Douglas Grant said demand for short-term funding remained robust as traditional banks continued to constrain lending to consumers and SMEs.
He said the group remained focused on underserved markets in the UK and Isle of Man, and was well positioned to pursue further organic growth and selective acquisitions.
At 1110 BST, shares in Manx Financial Group were down 3.43% at 27.04p.
Reporting by Josh White for Sharecast.com.
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