Distribution Finance Capital, the specialist bank providing vehicle inventory funding to UK dealers and manufacturers, has increased its pre-tax profit performance from £4.6 million to £19.1m year-on-year.
The Manchester-based business has been building scale since first being authorised as a bank just four years ago.
The firm increased the number of dealers it works with by 13% to 1,334. Its loan book increased by 15% to £666m, while the number of new loans advanced to customers increased by 20% to £1.4 billion.
Revnues increased by 27% year-on-year to £76.8m.
The bank saw a strong credit risk performance with a flat level of arrears cases at 33 dealers, up slightly on the 30 last year, with arrears one day past due and in legal recovery, representing less than 3% of the group’s entire dealer customer base.
Carl D’Ammassa, DF Capital chief executive, said: “2024 was another year of significant progress for the group, marking our third consecutive year of profit growth since our authorisation in 2020.
“This year, we have continued to scale the bank in our core inventory finance lending space, while also making investments in new products and services, bringing to life our ambitions to become a multi-product lender.
“I am incredibly proud of the team and the products we are bringing to life for our customers. We have an exciting journey ahead of us.”
DF Capital expects to close the year with a loan book in the range of £750m to £800m, with scope to support loans in excess of £1.3bn “without the need for a dilutive equity raise”.