A Year of Strategic Growth and Solid Performance
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A Year of Strategic Growth and Solid Performance
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Conister Bank’s parent company Manx Financial Group PLC (LSE: MFX) announces another record-breaking financial year in 2023, reinforcing its position as a leading provider of diversified financial services in the Isle of Man and the United Kingdom.
Douglas Grant, Conister Bank’s Managing Director, and Group CEO comments, “This year has been another landmark period for us, marking a continuation of our record-breaking success, for which I must extend my deepest gratitude to our dedicated team. Their contributions have been the backbone of yet another highly successful year.
The substantial increase in our lending operations underscores our strong market position across both the island and the UK, serving as a clear affirmation of the deep trust our customers have in us. This trust forms the cornerstone of our foundation, propelling us toward reaching even higher achievements in 2024 and the years to follow.
Our achievements are not just a measure of our financial performance but a reflection of our commitment to these values. I look forward to continuing this journey, guided by our dedication to making a positive impact on the lives of our customers and the communities we serve”.
Financial Highlights
Profit After Tax: Conister has witnessed a commendable increase in its Profit After Tax, climbing to £2.2 million in 2023 from £1.8 million in the previous year. This uptick reflects the efficiency and strategic direction of the Bank and its subsidiary.
Loan Book Growth: The institution’s commitment to serving its clients’ needs is evidenced by its growing loan book, which saw a lending increase to £56.3 million in 2023 from £50.5 million in 2022. The net loan book now stands at an impressive £78.4 million, up from £68.4 million, maintaining exceptionally low arrears at 1.89%.
Structured Finance: The UK market has been a significant growth area for Conister, particularly through its Structured Finance products. Lending in this segment surged by £93.1 million to £246.2 million, illustrating the Bank’s ability to structure facilities that minimise default risk while navigating a challenging economic environment.
Isle of Man Deposit Base: The loyalty of the Isle of Man deposit base remains strong, with a 77% retention rate. The introduction of new deposits amounting to £156.0 million has bolstered the Bank’s liquidity, facilitating its record growth.
UK Branch Deposit Taking Permissions: A milestone achievement in 2023 was obtaining UK Branch Deposit Taking permissions, setting the stage for Conister to tap into new lending and liquidity opportunities through an online deposit process expected to launch in the second half of 2024.
Operational Enhancements and Outlook
Overhead and Provisions: In preparation for its UK operations, Conister has increased its overheads by £1.5 million to £11.9 million, primarily to enhance its Credit and Collections teams. Meanwhile, provisions have decreased, indicating a stronger loan book.
Asset and Liability Management: The Bank’s total assets have grown significantly, along with liabilities, driven by an increase in deposits. This reflects a balanced approach to asset and liability management, essential for sustainable growth.
Restructuring and UK Expansion: With the award of the UK Banking Licence, 2024 will see the restructuring of Conister Finance & Leasing Ltd. The Bank’s Basingstoke office is set to become its UK branch, emphasising its commitment to the UK market.
Conister Bank has demonstrated remarkable agility and strategic foresight in a year fraught with challenges. Through targeted growth initiatives, operational enhancements, and a relentless focus on client needs, Conister has not only achieved impressive financial results but has also laid a solid foundation for future expansion, particularly in the UK. As Conister navigates the complexities of the financial landscape, it remains poised for continued success, underscoring its role as a dynamic and resilient player in the banking sector.
