Final accounts for the year ended 31 December 2024

About this update from Manx Financial Group Plc

[{"type":"text","content":"\n \n Manx Financial Group PLC \n (the \"Group\") \n Report and accounts for the year ended 31 December 2024  \n   \n Manx Financial Group PLC (LSE: MFX), the financial services group which includes Conister Bank Limited, Conister Finance & Leasing Ltd, Payment Assist Limited, Blue Star Business Solutions Limited, Edgewater Associates Limited and MFX Limited presents its audited final results for the year ended 31 December 2024. \n Jim Mellon , Executive Chair, commented: \n   \n \" I am pleased to report another record set of results for the Group. Profit before tax for the year increased by £2.9 million to £9.9 million - a gain of 41%. \" \n   \n The 2024 Audited Annual Report and Accounts will be posted to Shareholders and will be available from the Company's website  www.mfg.im  shortly. Details concerning the 2025 Annual General Meeting will be announced in due course. \n Douglas Grant, Group Chief Executive Officer, and James Smeed, Group Finance Director, will host a live presentation for retail investors relating to the FY24 Results via Investor Meet Company on 27 June 2025 at 11:30am UK time. \n The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 09:00 on 26 June or at any time during the live presentation. \n Investors can sign up to Investor Meet Company for free and register to meet Manx Financial Group PLC via: https://www.investormeetcompany.com/manx-financial-group-plc/register-investor . \n Investors who already follow Manx Financial Group PLC on the Investor Meet Company platform will automatically be invited. \n THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION (EU No. 596/2014) AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018. UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN AND SUCH PERSONS SHALL THEREFORE CEASE TO BE IN POSSESSION OF INSIDE INFORMATION. \n For further information, please contact: \n \n \n \n \n Manx Financial Group PLC \n \n \n Beaumont Cornish Limited \n \n \n Tavistock Communications Limited \n \n \n Greentarget Limited \n \n \n \n \n Denham Eke \n \n \n Roland Cornish/ \n James Biddle \n \n \n Simon Hudson/ \n Kuba Stawiski \n \n \n Jamie Brownlee \n \n \n \n \n Tel: +44 (0) 1624 694694 \n \n \n Tel: +44 (0) 20 7628 3396 \n \n \n Tel: +44 207 920 3150 [email protected] \n \n \n Tel: +44 (0) 20 3307 5726 \n \n \n \n \n   \n Nominated Adviser \n Beaumont Cornish Limited (\"Beaumont Cornish\") is the Company's Nominated Adviser and is authorised and regulated by the FCA. Beaumont Cornish's responsibilities as the Company's Nominated Adviser, including a responsibility to advise and guide the Company on its responsibilities under the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed solely to the London Stock Exchange. Beaumont Cornish is not acting for and will not be responsible to any other persons for providing protections afforded to customers of Beaumont Cornish nor for advising them in relation to the proposed arrangements described in this announcement or any matter referred to in it. \n   \n \n \n   \n Introduction \n I am pleased to report another record set of results for the Group. Profit before tax for the year increased by £2.9 million to £9.9 million (2023: £7.0 million) - a gain of 41.0%. This delivered a 49.7% growth in basic earnings per share to 6.87 pence (2023: 4.59 pence) with profit attributable to shareholders of £8.1 million (2023: £5.3 million). Turning to the balance sheet, loans and advances to customers increased to £372.4 million (2023: £362.6 million) and total assets rose to £497.8 million (2023: £480.7 million). Return on equity increased by 3.2% to 23.8% (2023: 20.6%). Further detail on the financial performance of the Group's subsidiaries is contained in the Operating Subsidiary Review section below. \n As a result, the Board will recommend returning 10.0% of the Group's profit available to shareholders in the form of cash and/or shares. This year the total dividend available for payment is £0.810 million (2023: £0.529 million). Thus, the amount recommended for shareholder approval will be 0.6768 pence per share (2023: 0.4553 pence per share), a 48.6% uplift, as we continue to reward our loyal shareholders. \n The material increases in operating income, profit before tax, earnings per share and return on equity have been achieved against a background of subdued economic activity in the Isle of Man and UK and is a testament to the resilience of our growth strategy. \n Our strategy is set and refined by making the best possible use of our sources of competitive advantage. Chief among these is the strong and stable liquidity base provided by our loyal depositor customers on the Isle of Man and now also in the UK. This has allowed us to carefully grow our loan book to small and medium sized enterprises (SME) which gives us valuable visibility of the issues SME face in securing financing as well as gaps in the market for niche products overlooked by our much larger peers. Our knowledge of the SME sector has enabled us to build a portfolio of valuable subsidiaries - from start-ups to selective and accretive acquisitions - which are creating significant value for shareholders. \n Our Isle of Man customer base is more diverse than that of the UK, with both SME and retail customers being served. During the year, we have continued to enhance and develop new products and entered the mortgage market for the first time in Conister Bank Limited's 90 ‑ year history. We continue to be a market leader in our home territory as we strategically grow both our lending and deposit balances. \n This strong set of results demonstrates our ability to grow our portfolio and improve earnings through prudently increasing our lending activities supported by our access to significant deposit markets. \n Operating Subsidiary Review \n The Group's operating subsidiaries continued to make progress during the year by executing their growth strategy, including launching new products and accessing new markets, all underpinned by Conister Bank Limited's stable access to liquidity and each operating unit's drive to deliver excellent customer service. The figures below are as reported in each entities' statutory accounts and are before the adjustments and eliminations undertaken to complete the Group consolidated statutory accounts. \n Payment Assist Limited \n \n \n \n \n \n \n \n 2024 \n \n \n 2023 \n \n \n Movement \n \n \n \n \n \n \n \n £'000 \n \n \n £'000 \n \n \n % \n \n \n \n \n Gross profit \n \n \n 10,049.7 \n \n \n 9,762.4 \n \n \n +2.9 \n \n \n \n \n Operating profit \n \n \n 4,718.3 \n \n \n 2,662.9 \n \n \n +77.2 \n \n \n \n \n Operating expense \n \n \n (327.0) \n \n \n (300.0) \n \n \n +9.0 \n \n \n \n \n Profit before tax \n \n \n 4,391.3 \n \n \n 2,362.9 \n \n \n +85.8 \n \n \n \n \n Equity \n \n \n 3,370.9 \n \n \n 1,785.7 \n \n \n +88.8 \n \n \n \n \n Payment Assist Limited nearly doubled its profitability to £4.4 million in the period due to improved customer acquisition (now with more than 100,000 active customers), together with improved yields and a significant one-off release of provisions following the full integration withing the Group and an enhancement to expected credit loss modelling and arrears management actions. \n Operating costs which include impairments, were carefully managed to ensure there was no deterioration as the lending book continued to grow. \n The remaining minority interest in this company was acquired in September 2024, and with the Group now wholly owning this subsidiary, the entire profit of the company from 2025 onwards will be attributable to our shareholders, further supporting the dividend growth we hope to continue to deliver. \n Conister Bank Limited \n \n \n \n \n \n \n \n 2024 \n \n \n 2023 \n \n \n Movement \n \n \n \n \n \n \n \n £'000 \n \n \n £'000 \n \n \n % \n \n \n \n \n Gross profit \n \n \n 12,578.3 \n \n \n 12,766.0 \n \n \n -1.5 \n \n \n \n \n Operating profit \n \n \n 17,329.3 \n \n \n 14,927.0 \n \n \n +16.1 \n \n \n \n \n Operating expense \n \n \n (15,449.2) \n \n \n (12,434.3) \n \n \n +24.2 \n \n \n \n \n Profit before tax \n \n \n 1,880.1 \n \n \n 2,492.7 \n \n \n -24.6 \n \n \n \n \n Equity \n \n \n 45,893.9 \n \n \n 41,498.1 \n \n \n +10.6 \n \n \n \n \n Conister Bank Limited continues to provide the Group access to competitive and reliable liquidity from which other subsidiaries benefit. As a result, total assets increased to £474.1 million whilst profitability reduced to £1.9 million. The major contribution towards the increase in operating expenses was loan impairment provisioning by £1.6 million, caused in part by the direct funding of the Payment Assist portfolio and increase in administration expenses by £1.9 million, caused by the continued investment in setting up the UK Branch and setting aside a £0.2 million provision for discretionary commission schemes. \n The Bank remains very liquid, increasing cash and cash equivalents and debt securities by £6.4 million to £91.1 million (2023: £84.7 million). Focus remains on shorter term lending, which allows a one-year deposit to be used multiple times and therefore driving improved liquidity efficiencies. Despite this focus on shorter term lending, loans and advances still increased by £6.0 million to £366.1 million (2023: £360.1 million) with deposits from both our UK and Isle of Man licenses increasing by £14.8 million to £405.2 million (2023: £390.4 million). Total assets for the Bank have reached a record high of £474.1 million (2023: £451.8 million). \n MFX Limited \n \n \n \n \n \n \n \n 2024 \n \n \n 2023 \n \n \n Movement \n \n \n \n \n \n \n \n £'000 \n \n \n £'000 \n \n \n % \n \n \n \n \n Gross profit \n \n \n 1,040.3 \n \n \n 1,048.5 \n \n \n -0.8 \n \n \n \n \n Operating profit \n \n \n n/a \n \n \n n/a \n \n \n n/a \n \n \n \n \n Operating expense \n \n \n (296.0) \n \n \n (370.9) \n \n \n -20.0 \n \n \n \n \n Profit before tax \n \n \n 743.7 \n \n \n 677.6 \n \n \n +9.8 \n \n \n \n \n Equity \n \n \n 300.9 \n \n \n 257.2 \n \n \n +17.0 \n \n \n \n \n Profitability increased by 9.8% to £0.7 million. The business operates at a 71.5% net profit margin due to its lean operational structure. All operating expenses are invested in our staff to ensure that the FX division provides high levels of care to our customers. The available equity in the company is regularly distributed to the Group, further enhancing returns to the wider Group. \n Our FX broker continues to perform well in the current economic environment and requires very little overhead to support. The team will seek to expand their customer base with a complementary offering during 2025. \n The Business Lending Exchange Limited \n \n \n \n \n \n \n \n 2024 \n \n \n 2023 \n \n \n Movement \n \n \n \n \n \n \n \n £'000 \n \n \n £'000 \n \n \n % \n \n \n \n \n Gross profit \n \n \n 2,041.1 \n \n \n 1,628.0 \n \n \n +25.4 \n \n \n \n \n Operating profit \n \n \n 1,592.1 \n \n \n 1,321.0 \n \n \n +20.5 \n \n \n \n \n Operating expense \n \n \n (954.2) \n \n \n (639.8) \n \n \n +49.1 \n \n \n \n \n Profit before tax \n \n \n 637.9 \n \n \n 681.2 \n \n \n -6.4 \n \n \n \n \n Equity \n \n \n 1,087.3 \n \n \n 1,023.6 \n \n \n +6.2 \n \n \n \n \n Profitability reduced slightly to £0.64m due to increased provisioning seen within this financial year, £0.4 million. This was offset by the growth in the loan book, with total assets increasing by 7.9% to £7.6 million, generating higher interest returns, 25.4% increase to £2.0 million and thereby nullifying the adverse impact from credit impairments. \n Our lending businesses operate within separate credit markets which provides resilience to the Group through their diversity. The Business Lending Exchange Limited operates in the credit broker introduced sub-prime market in which our management team has extensive history. This business has the opportunity to grow substantially in this economic environment. \n Edgewater Associates Limited \n \n \n \n \n \n \n \n 2024 \n \n \n 2023 \n \n \n Movement \n \n \n \n \n \n \n \n £'000 \n \n \n £'000 \n \n \n % \n \n \n \n \n Gross profit \n \n \n n/a \n \n \n n/a \n \n \n n/a \n \n \n \n \n Operating profit \n \n \n 2,047.8 \n \n \n 2,034.3 \n \n \n +0.7 \n \n \n \n \n Operating expense \n \n \n (1,660.0) \n \n \n (2,069.9) \n \n \n -19.8 \n \n \n \n \n Profit before tax \n \n \n 387.8 \n \n \n (35.6) \n \n \n +1,189.3 \n \n \n \n \n Equity \n \n \n 1,236.3 \n \n \n 1,298.6 \n \n \n -4.8 \n \n \n \n \n This business was restructured in September 2023 and so the year under review was the first full year post its re-structure. Ultimately, this led to £0.4 million savings in operating expenses whilst delivering on the same level of turnover seen in the year before. \n Thus, improvement has been achieved through operational efficiencies without any detriment to the high levels of service given to our clients. Further organic growth is anticipated in 2025, and further accretive acquisitions are being sought. \n Manx Ventures Limited \n \n \n \n \n \n \n \n 2024 \n \n \n 2023 \n \n \n Movement \n \n \n \n \n \n \n \n £'000 \n \n \n £'000 \n \n \n % \n \n \n \n \n Gross profit \n \n \n 1,507.4 \n \n \n 916.2 \n \n \n +64.5 \n \n \n \n \n Operating profit \n \n \n 1,497.5 \n \n \n 737.5 \n \n \n +103.1 \n \n \n \n \n Operating expense \n \n \n (17.9) \n \n \n (194.9) \n \n \n -90.8 \n \n \n \n \n Profit before tax \n \n \n 1,515.4 \n \n \n 932.4 \n \n \n +62.5 \n \n \n \n \n Equity \n \n \n 1,774.3 \n \n \n 258.9 \n \n \n +585.3 \n \n \n \n \n Manx Ventures Limited continues to expand its investment holdings held within the Group and this led to £1.1 million of dividend receipts in the period. Currently, Manx Ventures Limited holds shares and options in six financial services companies, with another one added post year-end (CAM Wealth) and holds three more investments in other financial services companies with warrants to acquire a greater shareholding as these companies grow. \n Manx Ventures Limited continues to seek acquisition opportunities that will continue to expand the Group's customer base, much like Payment Assist Limited, which has clearly benefitted the Group since take ‑ on. It is the company's intention to continue to invest in financial services companies, generating dividends and investment income. \n Key Objectives \n The change in UK Government in May 2024 has led to an increase in public borrowing and business taxation which has resulted in interest rates remaining higher for longer and inflation remaining stubbornly higher than the Bank of England's 2.0% target. Despite this, I remain cautiously optimistic in the robustness of both the Isle of Man and the UK economy and believe we will move to a more normalised interest rate and inflation rate environment over the next 24 months. During this period, our key objective will continue to be to safely grow shareholder value. Thus, our strategic focus remains unchanged, namely to: \n §  Provide the highest quality of service throughout our operations to all customers, ensuring that their treatment is both fair and appropriate; \n §  Continue adopting a pro-active strategy to managing risk, including credit and climate risk, within a structured and compliant manner; \n §  Concentrate on developing our core business by considered acquisitions, increasing prudential lending, and augmenting the range of financial services we offer; \n §  Prudently progress the implementation of our IT infrastructure to better service the operational requirements of a growing Group without the requirement for a disproportionate increase in headcount and other associated operational costs; \n §  Continue to develop our Treasury management to improve the return on the liability side of our balance sheet; and \n §  Manage our balance sheet to exceed the regulatory requirements for capital adequacy. \n To continue to grow shareholder value, we will deploy our regulatory capital in its most efficient manner by taking advantage of the opportunities this economic and regulatory environment brings. We will continue to focus on the SME sector with our Structured Finance offering, and on the consumer sector with market leading, technologically driven, shorter term lending products. This organic growth will be supported by our non-dilutive acquisition strategy. Further details of our strategic objectives will be found in the Corporate Governance Report, together with our observance on the QCA Code requirements. \n Environmental, Social and Corporate Governance \n The Board plays a key role in supporting and challenging the Group's long-term strategic planning. This includes the responsibility to provide effective governance and a rigorous assessment of all risks, including climate. \n The addition of new subsidiary, Payment Assist Limited, within in the operational boundary has contributed to significant increases in absolute scope 1 (+77%) and scope 2 (+37%) emissions in 2024. \n It now accounts for over 25% of the Group's total building-energy consumption and total scope 1 and 2 footprint and is also a key driver behind the increases in electricity and gas consumption. \n The Group's carbon footprint for 2024 will be restated in 2025 (in line with the criteria included within the restated Green House Gas Protocol Corporate Standard), when a more complete set of scope 1 and 2 primary activity data has been obtained for Payment Assist Limited. \n In relative terms, however, the Group's carbon intensity ratios show less impact, with scope 1 and 2 emissions per Full Time Employee at around 5% lower compared to 2023. \n Outlook \n The Group made significant progress in 2024 towards delivering its key objectives, while maintaining a prudent approach to growth. This was achieved despite the much-discussed challenging economic environments across the world. But this environment will drive opportunities, for example, in the short ‑ term lending space for short-term loans, such as Buy Now Pay Later, premium finance and overdrafts. This short ‑ term loan sector, normally with a term of between four and 12 months, is taking market share from the traditional credit card market due to its little to no interest charge and its longer repayment period. Your Group has subsidiaries, such as Payment Assist Limited (the leading UK Buy Now Pay Later lender to the automotive industry), Conister Bank Limited and The Business Lending Exchange Limited, who are well placed to serve these markets. \n The Group will not be immune from the findings of the Supreme Court on discretionary commission payments whose judgement is due to be released in July 2025 after which the FCA will announce what remediation lenders will be required to undertake. However, the Board believe that our exposure is limited. At the year-end Conister Bank Limited and its auditors assessed the position as currently known and set aside £0.2 million to remedy the position. I will be able to provide a more detailed report on this topic in my 2025 Interim statement. \n Also, the Group continues to develop its offering to acquire market share in underserved credit markets in both the UK and the Isle of Man, and in new jurisdictions. To this end, the Group has commenced a project to obtain a consumer credit licence in the Republic of Ireland which, longer term, will be helpful in passporting to other credit markets within the EU as the Group expands its reach. \n Board Changes \n Having loyally served the shareholders for 18 years, Alan Clarke has decided to retire from his positions as a non-executive director of both Manx Financial Group PLC and Conister Bank Limited, and the Chair of our Audit, Risk & Compliance Committee and the Chair of our Remuneration Committee. I wish to take this opportunity to thank Alan on behalf of the directors, shareholders and, in particular, myself for all his loyal support and advice over the years and to wish him well in whatever he decides to undertake in his next chapter of life. The next Chairs for the Remuneration Committee and the Audit, Risk & Compliance Committee will be communicated at the upcoming AGM. \n Thank You \n Our people are at the heart of our success. On behalf of the Board, I would like to thank all of our staff for their efforts to exceed customer expectations and continuing to deliver value for our loyal shareholders. \n Jim Mellon \n Executive Chair \n 24 June 2025 \n Consolidated Statement of Profit or Loss and Other Comprehensive Income \n \n \n \n \n \n \n \n \n \n \n 2024 \n \n \n 2023 \n \n \n \n \n For the year ended 31 December \n \n \n Notes \n \n \n £000 \n \n \n £000 \n \n \n \n \n Interest revenue calculated using the effective interest method \n \n \n \n \n \n 55,930 \n \n \n 46,891 \n \n \n \n \n Interest expense \n \n \n \n \n \n (23,139) \n \n \n (14,530) \n \n \n \n \n Net interest income \n \n \n 9 \n \n \n 32,791 \n \n \n 32,361 \n \n \n \n \n Fee and commission income \n \n \n 10 \n \n \n 3,923 \n \n \n 3,997 \n \n \n \n \n Fee and commission expense \n \n \n 10 \n \n \n (7,181) \n \n \n (7,327) \n \n \n \n \n Net trading income \n \n \n \n \n \n 29,533 \n \n \n 29,031 \n \n \n \n \n Other operating income \n \n \n \n \n \n 585 \n \n \n 364 \n \n \n \n \n Gain on financial instruments \n \n \n 19 \n \n \n 18 \n \n \n 195 \n \n \n \n \n Realised gain on debt securities \n \n \n 18 \n \n \n 4,266 \n \n \n 1,893 \n \n \n \n \n Operating income \n \n \n \n \n \n 34,402 \n \n \n 31,483 \n \n \n \n \n Personnel expenses \n \n \n 11 \n \n \n (12,495) \n \n \n (12,170) \n \n \n \n \n Other expenses \n \n \n 12 \n \n \n (9,053) \n \n \n (6,627) \n \n \n \n \n Provision for impairment on loans and advances to customers \n \n \n 13 \n \n \n (1,752) \n \n \n (4,135) \n \n \n \n \n Depreciation \n \n \n 22 \n \n \n (949) \n \n \n (825) \n \n \n \n \n Amortisation and impairment of intangibles \n \n \n 23 \n \n \n (340) \n \n \n (683) \n \n \n \n \n Share of profit of equity accounted investees, net of tax \n \n \n 30 \n \n \n 119 \n \n \n - \n \n \n \n \n Profit before tax payable \n \n \n 14 \n \n \n 9,932 \n \n \n 7,043 \n \n \n \n \n Income tax expense \n \n \n 15 \n \n \n (1,384) \n \n \n (903) \n \n \n \n \n Profit for the year \n \n \n \n \n \n 8,548 \n \n \n 6,140 \n \n \n \n \n \n \n \n \n \n \n 2024 \n \n \n 2023 \n \n \n \n \n For the year ended 31 December \n \n \n Notes \n \n \n £000 \n \n \n £000 \n \n \n \n \n Profit for the year \n \n \n \n \n \n 8,548 \n \n \n 6,140 \n \n \n \n \n Other comprehensive income: \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Items that will be reclassified to profit or loss \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Unrealised (loss)/gain on debt securities \n \n \n 18 \n \n \n (395) \n \n \n 324 \n \n \n \n \n Related tax \n \n \n \n \n \n 40 \n \n \n (32) \n \n \n \n \n Items that will never be reclassified to profit or loss \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Actuarial gain on defined benefit pension scheme taken to equity \n \n \n 28 \n \n \n 67 \n \n \n 29 \n \n \n \n \n Related tax \n \n \n \n \n \n (7) \n \n \n (3) \n \n \n \n \n Other comprehensive (loss)/gain, net of tax \n \n \n \n \n \n (295) \n \n \n 318 \n \n \n \n \n Total comprehensive income for the period attributable to owners \n \n \n \n \n \n 8,253 \n \n \n 6,458 \n \n \n \n \n Profit attributable to: \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Owners of the Company \n \n \n \n \n \n 8,102 \n \n \n 5,288 \n \n \n \n \n Non-controlling interests \n \n \n 32 \n \n \n 446 \n \n \n 852 \n \n \n \n \n \n \n \n \n \n \n 8,548 \n \n \n 6,140 \n \n \n \n \n Total comprehensive income attributable to: \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Owners of the Company \n \n \n \n \n \n 7,807 \n \n \n 5,606 \n \n \n \n \n Non-controlling interests \n \n \n 32 \n \n \n 446 \n \n \n 852 \n \n \n \n \n \n \n \n \n \n \n 8,253 \n \n \n 6,458 \n \n \n \n \n Earnings per share - Profit for the year \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Basic earnings per share (pence) \n \n \n 16 \n \n \n 6.87 \n \n \n 4.59 \n \n \n \n \n Diluted earnings per share (pence) \n \n \n 16 \n \n \n 5.39 \n \n \n 3.51 \n \n \n \n \n Earnings per share - Total comprehensive income for the year \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Basic earnings per share (pence) \n \n \n 16 \n \n \n 6.62 \n \n \n 4.86 \n \n \n \n \n Diluted earnings per share (pence) \n \n \n 16 \n \n \n 5.20 \n \n \n 3.71 \n \n \n \n \n The Directors believe that all results derive from continuing activities. \n Company Statement of Profit or Loss and Other Comprehensive Income \n \n \n \n \n \n \n \n \n \n \n 2024 \n \n \n 2023 \n \n \n \n \n For the year ended 31 December \n \n \n Notes \n \n \n £000 \n \n \n £000 \n \n \n \n \n Interest income calculated using the effective interest method \n \n \n \n \n \n 998 \n \n \n 862 \n \n \n \n \n Interest expense \n \n \n \n \n \n (89) \n \n \n - \n \n \n \n \n Dividend income \n \n \n \n \n \n 450 \n \n \n 1,200 \n \n \n \n \n Other income \n \n \n \n \n \n 700 \n \n \n 584 \n \n \n \n \n Operating income \n \n \n \n \n \n 2,059 \n \n \n 2,646 \n \n \n \n \n Personnel expenses \n \n \n 11 \n \n \n (40) \n \n \n (62) \n \n \n \n \n Administration expenses \n \n \n \n \n \n (74) \n \n \n (61) \n \n \n \n \n Depreciation expense \n \n \n 22 \n \n \n (128) \n \n \n (63) \n \n \n \n \n Amortisation expense \n \n \n 23 \n \n \n (2) \n \n \n (57) \n \n \n \n \n Profit before tax payable \n \n \n \n \n \n 1,815 \n \n \n 2,403 \n \n \n \n \n Tax payable \n \n \n \n \n \n - \n \n \n - \n \n \n \n \n Profit for the year \n \n \n \n \n \n 1,815 \n \n \n 2,403 \n \n \n \n \n Total comprehensive income for the year \n \n \n \n \n \n 1,815 \n \n \n 2,403 \n \n \n \n \n The Directors believe that all results derive from continuing activities. \n Consolidated Statement of Financial Position \n \n \n \n \n \n \n \n \n \n \n 2024 \n \n \n 2023 \n \n \n \n \n As at 31 December \n \n \n Notes \n \n \n £000 \n \n \n £000 \n \n \n \n \n Assets \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Cash and cash equivalents \n \n \n 17 \n \n \n 16,199 \n \n \n 12,107 \n \n \n \n \n Debt securities \n \n \n 18 \n \n \n 79,140 \n \n \n 76,129 \n \n \n \n \n Equity held at Fair Value Through Profit or Loss \n \n \n 33 \n \n \n 154 \n \n \n 138 \n \n \n \n \n Loans and advances to customers \n \n \n 20 \n \n \n 372,358 \n \n \n 362,653 \n \n \n \n \n Trade and other receivables \n \n \n 21 \n \n \n 7,312 \n \n \n 8,227 \n \n \n \n \n Property, plant and equipment \n \n \n 22 \n \n \n 6,433 \n \n \n 6,410 \n \n \n \n \n Intangible assets \n \n \n 23 \n \n \n 5,301 \n \n \n 4,268 \n \n \n \n \n Investment in associates \n \n \n 30 \n \n \n 317 \n \n \n 197 \n \n \n \n \n Goodwill \n \n \n 34 \n \n \n 10,576 \n \n \n 10,576 \n \n \n \n \n Total assets \n \n \n \n \n \n 497,790 \n \n \n 480,705 \n \n \n \n \n Liabilities \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Deposits from customers \n \n \n 24 \n \n \n 405,166 \n \n \n 390,421 \n \n \n \n \n Creditors and accrued charges \n \n \n 25 \n \n \n 9,679 \n \n \n 14,409 \n \n \n \n \n Deferred consideration \n \n \n 26 \n \n \n - \n \n \n 20 \n \n \n \n \n Loan notes \n \n \n 27 \n \n \n 45,292 \n \n \n 39,317 \n \n \n \n \n Pension liability \n \n \n 28 \n \n \n 46 \n \n \n 162 \n \n \n \n \n Deferred tax liability \n \n \n 15 \n \n \n 294 \n \n \n 392 \n \n \n \n \n Total liabilities \n \n \n \n \n \n 460,477 \n \n \n 444,721 \n \n \n \n \n Equity \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Called up share capital \n \n \n 29 \n \n \n 19,626 \n \n \n 19,384 \n \n \n \n \n Profit and loss account \n \n \n \n \n \n 17,632 \n \n \n 15,544 \n \n \n \n \n Revaluation reserve \n \n \n 22 \n \n \n - \n \n \n 15 \n \n \n \n \n Non-controlling interest \n \n \n 32 \n \n \n 55 \n \n \n 1,041 \n \n \n \n \n Total equity \n \n \n \n \n \n 37,313 \n \n \n 35,984 \n \n \n \n \n Total liabilities and equity \n \n \n \n \n \n 497,790 \n \n \n 480,705 \n \n \n \n \n Company Statement of Financial Position \n \n \n \n \n \n \n \n \n \n \n 2024 \n \n \n 2023 \n \n \n \n \n As at 31 December \n \n \n Notes \n \n \n £000 \n \n \n £000 \n \n \n \n \n Assets \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Cash and cash equivalents \n \n \n 17 \n \n \n 718 \n \n \n 373 \n \n \n \n \n Trade and other receivables \n \n \n 21 \n \n \n 130 \n \n \n 123 \n \n \n \n \n Amounts due from Group undertakings \n \n \n 35 \n \n \n 14,421 \n \n \n 10,694 \n \n \n \n \n Property, plant and equipment \n \n \n 22 \n \n \n 87 \n \n \n 139 \n \n \n \n \n Intangible assets \n \n \n 23 \n \n \n 1,983 \n \n \n 861 \n \n \n \n \n Investment in subsidiaries \n \n \n 31 \n \n \n 31,097 \n \n \n 28,097 \n \n \n \n \n Subordinated loans \n \n \n 35 \n \n \n 14,228 \n \n \n 14,228 \n \n \n \n \n Total assets \n \n \n \n \n \n 62,664 \n \n \n 54,515 \n \n \n \n \n Liabilities \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Creditors and accrued charges \n \n \n 25 \n \n \n 1,603 \n \n \n 544 \n \n \n \n \n Amounts due to Group undertakings \n \n \n 35 \n \n \n - \n \n \n 608 \n \n \n \n \n Loan notes \n \n \n 27 \n \n \n 45,292 \n \n \n 39,317 \n \n \n \n \n Total liabilities \n \n \n \n \n \n 46,895 \n \n \n 40,469 \n \n \n \n \n Equity \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Called up share capital \n \n \n 29 \n \n \n 19,626 \n \n \n 19,384 \n \n \n \n \n Profit and loss account \n \n \n \n \n \n (3,857) \n \n \n (5,338) \n \n \n \n \n Total equity \n \n \n \n \n \n 15,769 \n \n \n 14,046 \n \n \n \n \n Total liabilities and equity \n \n \n \n \n \n 62,664 \n \n \n 54,515 \n \n \n \n \n Consolidated and Company Statements of Changes in Equity \n \n \n \n \n \n \n \n Attributable to owners of the Company \n \n \n \n \n \n \n \n \n \n \n \n \n \n Profit \n \n \n \n \n \n \n \n \n Non- \n \n \n \n \n \n \n \n \n \n \n Share \n \n \n and loss \n \n \n Revaluation \n \n \n \n \n \n controlling \n \n \n Total \n \n \n \n \n \n \n \n capital \n \n \n account \n \n \n reserve \n \n \n Total \n \n \n interests \n \n \n equity \n \n \n \n \n Group \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n \n \n Balance as at 1 January 2023 \n \n \n 19,195 \n \n \n 10,371 \n \n \n 15 \n \n \n 29,581 \n \n \n 189 \n \n \n 29,770 \n \n \n \n \n Profit for the year \n \n \n - \n \n \n 5,288 \n \n \n - \n \n \n 5,288 \n \n \n 852 \n \n \n 6,140 \n \n \n \n \n Other comprehensive income \n \n \n - \n \n \n 318 \n \n \n - \n \n \n 318 \n \n \n - \n \n \n 318 \n \n \n \n \n Transactions with owners \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Dividends declared (see note 29) \n \n \n - \n \n \n (342) \n \n \n - \n \n \n (342) \n \n \n - \n \n \n (433) \n \n \n \n \n Scrip dividend shares (see note 29) \n \n \n 91 \n \n \n (91) \n \n \n - \n \n \n - \n \n \n - \n \n \n 91 \n \n \n \n \n Share issue (see note 29) \n \n \n 98 \n \n \n - \n \n \n - \n \n \n 98 \n \n \n - \n \n \n 98 \n \n \n \n \n Balance as at 31 December 2023 \n \n \n 19,384 \n \n \n 15,544 \n \n \n 15 \n \n \n 34,943 \n \n \n 1,041 \n \n \n 35,984 \n \n \n \n \n Profit for the year \n \n \n - \n \n \n 8,102 \n \n \n - \n \n \n 8,102 \n \n \n 446 \n \n \n 8,548 \n \n \n \n \n Other comprehensive income \n \n \n - \n \n \n (295) \n \n \n - \n \n \n (295) \n \n \n - \n \n \n (295) \n \n \n \n \n Transactions with owners \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Dividend declared (see note 29) \n \n \n - \n \n \n (337) \n \n \n - \n \n \n (337) \n \n \n (1,817) \n \n \n (2,154) \n \n \n \n \n Scrip dividend shares (see note 29) \n \n \n 193 \n \n \n (193) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n Share options exercised (see note 29) \n \n \n 49 \n \n \n - \n \n \n - \n \n \n 49 \n \n \n - \n \n \n 49 \n \n \n \n \n Share-based payment expense (see notes 16 and 29) \n \n \n - \n \n \n 196 \n \n \n - \n \n \n 196 \n \n \n - \n \n \n 196 \n \n \n \n \n Revaluation loss \n \n \n - \n \n \n - \n \n \n (15) \n \n \n (15) \n \n \n - \n \n \n (15) \n \n \n \n \n Acquisition of NCI net without change of control \n \n \n - \n \n \n (5,385) \n \n \n - \n \n \n (5,385) \n \n \n 385 \n \n \n (5,000) \n \n \n \n \n Balance as at 31 December 2024 \n \n \n 19,626 \n \n \n 17,632 \n \n \n - \n \n \n 37,258 \n \n \n 55 \n \n \n 37,313 \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Profit \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Share \n \n \n and loss \n \n \n Total \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n capital \n \n \n account \n \n \n equity \n \n \n \n \n Company \n \n \n \n \n \n \n \n \n \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n \n \n Balance as at 1 January 2023 \n \n \n \n \n \n \n \n \n \n \n \n 19,195 \n \n \n (7,308) \n \n \n 11,887 \n \n \n \n \n Profit for the year \n \n \n \n \n \n \n \n \n \n \n \n - \n \n \n 2,403 \n \n \n 2,403 \n \n \n \n \n Transactions with owners \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Issue of share issue (see note 29) \n \n \n \n \n \n \n \n \n \n \n \n 98 \n \n \n - \n \n \n 98 \n \n \n \n \n Dividends declared (see note 29) \n \n \n \n \n \n \n \n \n \n \n \n - \n \n \n (342) \n \n \n (342) \n \n \n \n \n Scrip dividend shares (see note 29) \n \n \n \n \n \n \n \n \n \n \n \n 91 \n \n \n (91) \n \n \n - \n \n \n \n \n Balance as at 31 December 2023 \n \n \n \n \n \n \n \n \n \n \n \n 19,384 \n \n \n (5,338) \n \n \n 14,046 \n \n \n \n \n Profit for the year \n \n \n \n \n \n \n \n \n \n \n \n - \n \n \n 1,815 \n \n \n 1,815 \n \n \n \n \n Transaction with owners \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Dividend declared (see note 29) \n \n \n \n \n \n \n \n \n \n \n \n - \n \n \n (337) \n \n \n (337) \n \n \n \n \n Scrip dividend shares (see note 29) \n \n \n \n \n \n \n \n \n \n \n \n 193 \n \n \n (193) \n \n \n - \n \n \n \n \n Share options exercised (see note 29) \n \n \n \n \n \n \n \n \n \n \n \n 49 \n \n \n - \n \n \n 49 \n \n \n \n \n Share-based payment expense (see notes 16 and 29) \n \n \n \n \n \n \n \n \n \n \n \n - \n \n \n 196 \n \n \n 196 \n \n \n \n \n Balance as at 31 December 2024 \n \n \n   \n \n \n   \n \n \n   \n \n \n 19,626 \n \n \n (3,857) \n \n \n 15,769 \n \n \n \n \n Consolidated Statement of Cash Flows \n \n \n \n \n \n \n \n \n \n \n 2024 \n \n \n 2023 \n \n \n \n \n For the year ended 31 December \n \n \n Notes \n \n \n £000 \n \n \n £000 \n \n \n \n \n Reconciliation of profit before taxation to operating cash flows \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Profit before tax \n \n \n \n \n \n 9,932 \n \n \n 7,043 \n \n \n \n \n Adjustments for: \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Depreciation \n \n \n 22 \n \n \n 949 \n \n \n 825 \n \n \n \n \n Amortisation of intangibles \n \n \n 23 \n \n \n 340 \n \n \n 683 \n \n \n \n \n Impairment of loans and advances to customers \n \n \n 13 \n \n \n 1,752 \n \n \n 4,135 \n \n \n \n \n Net interest income \n \n \n \n \n \n (35,614) \n \n \n (34,726) \n \n \n \n \n Realised gains on debt securities \n \n \n \n \n \n (4,266) \n \n \n (1,893) \n \n \n \n \n Share of profit of Equity Accountant Investees \n \n \n \n \n \n (119) \n \n \n - \n \n \n \n \n Lease interest \n \n \n \n \n \n 132 \n \n \n 93 \n \n \n \n \n Contingent consideration interest expense \n \n \n 6(ii) \n \n \n - \n \n \n 4 \n \n \n \n \n Pension charge included in personnel expenses \n \n \n 28 \n \n \n 8 \n \n \n 11 \n \n \n \n \n Gain on financial instruments \n \n \n 19 \n \n \n (18) \n \n \n (195) \n \n \n \n \n \n \n \n \n \n \n (26,904) \n \n \n (24,020) \n \n \n \n \n Changes in: \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Trade and other receivables \n \n \n 21 \n \n \n 915 \n \n \n (4,016) \n \n \n \n \n Creditors and accrued charges \n \n \n 25 \n \n \n (5,432) \n \n \n 1,953 \n \n \n \n \n Net cash flow from trading activities \n \n \n \n \n \n (31,421) \n \n \n (26,083) \n \n \n \n \n Changes in: \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Loans and advances to customers \n \n \n 20 \n \n \n (13,691) \n \n \n (75,590) \n \n \n \n \n Deposits from customers \n \n \n 24 \n \n \n 16,818 \n \n \n 88,116 \n \n \n \n \n Pension contribution \n \n \n 28 \n \n \n (57) \n \n \n (57) \n \n \n \n \n Cash used in operating activities \n \n \n \n \n \n (28,351) \n \n \n (13,614) \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n 2024 \n \n \n 2023 \n \n \n \n \n For the year ended 31 December \n \n \n Notes \n \n \n £000 \n \n \n £000 \n \n \n \n \n CASH FLOW STATEMENT \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Cash from operating activities \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Cash used in operating activities \n \n \n \n \n \n (28,351) \n \n \n (13,614) \n \n \n \n \n Interest received \n \n \n \n \n \n 58,164 \n \n \n 47,168 \n \n \n \n \n Interest paid \n \n \n \n \n \n (22,389) \n \n \n (14,059) \n \n \n \n \n Income taxes paid \n \n \n \n \n \n (1,095) \n \n \n (1,337) \n \n \n \n \n Net cash from operating activities \n \n \n \n \n \n 6,329 \n \n \n 18,158 \n \n \n \n \n Cash flows from investing activities \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Acquisition of property, plant and equipment, excluding right-of-use assets \n \n \n 22 \n \n \n (228) \n \n \n (1,280) \n \n \n \n \n Acquisition of intangible assets \n \n \n 23 \n \n \n (1,373) \n \n \n (2,248) \n \n \n \n \n Proceeds from sale of property, plant and equipment \n \n \n 22 \n \n \n - \n \n \n 759 \n \n \n \n \n Purchase of debt securities \n \n \n \n \n \n (860) \n \n \n (33,237) \n \n \n \n \n Deferred consideration on acquisition of subsidiary \n \n \n 6(ii),26 \n \n \n (20) \n \n \n (67) \n \n \n \n \n Net cash used in investing activities \n \n \n \n \n \n (2,481) \n \n \n (36,073) \n \n \n \n \n Cash flows from financing activities \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Receipt of loan notes \n \n \n 27 \n \n \n 5,975 \n \n \n 7,985 \n \n \n \n \n Acquisition of non-controlling interest \n \n \n 34 \n \n \n (5,000) \n \n \n - \n \n \n \n \n Payment of lease liabilities \n \n \n 37 \n \n \n (443) \n \n \n (349) \n \n \n \n \n Dividend paid \n \n \n 29 \n \n \n (337) \n \n \n (342) \n \n \n \n \n Proceeds from issue of share \n \n \n 29 \n \n \n 49 \n \n \n 98 \n \n \n \n \n Net cash from financing activities \n \n \n \n \n \n 244 \n \n \n 7,392 \n \n \n \n \n Net increase / (decrease) in cash and cash equivalents \n \n \n \n \n \n 4,092 \n \n \n (10,523) \n \n \n \n \n Cash and cash equivalents at 1 January \n \n \n \n \n \n 12,107 \n \n \n 22,630 \n \n \n \n \n Cash and cash equivalents at 31 December \n \n \n \n \n \n 16,199 \n \n \n 12,107 \n \n \n \n \n Company Statement of Cash Flows \n \n \n \n \n \n \n \n \n \n \n 2024 \n \n \n 2023 \n \n \n \n \n For the year ended 31 December \n \n \n Notes \n \n \n £000 \n \n \n £000 \n \n \n \n \n Reconciliation of profit before taxation to operating cash flows \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Profit before tax \n \n \n \n \n \n 1,815 \n \n \n 2,403 \n \n \n \n \n Adjustments for: \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Depreciation \n \n \n 22 \n \n \n 128 \n \n \n 63 \n \n \n \n \n Amortisation \n \n \n 23 \n \n \n 2 \n \n \n 57 \n \n \n \n \n Interest income \n \n \n \n \n \n (998) \n \n \n (862) \n \n \n \n \n RSU expense taken to reserves \n \n \n \n \n \n 196 \n \n \n - \n \n \n \n \n Dividend income \n \n \n \n \n \n (450) \n \n \n (1,200) \n \n \n \n \n \n \n \n \n \n \n 693 \n \n \n 461 \n \n \n \n \n Changes in: \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Amounts due from group undertakings \n \n \n 35 \n \n \n (3,727) \n \n \n (787) \n \n \n \n \n Trade and other receivables \n \n \n 21 \n \n \n (7) \n \n \n 439 \n \n \n \n \n Creditors and accrued charges \n \n \n 25 \n \n \n 1,206 \n \n \n 312 \n \n \n \n \n Amounts due to Group undertakings \n \n \n \n \n \n (608) \n \n \n 486 \n \n \n \n \n Cash (used in) /from operating activities \n \n \n \n \n \n (2,443) \n \n \n 911 \n \n \n \n \n CASH FLOW STATEMENT \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Cash from operating activities \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Cash (used in) / from operating activities \n \n \n \n \n \n (2,443) \n \n \n 911 \n \n \n \n \n Interest received \n \n \n \n \n \n 998 \n \n \n 862 \n \n \n \n \n Dividends received \n \n \n \n \n \n 450 \n \n \n 1,200 \n \n \n \n \n Net cash (used in) / from operating activities \n \n \n \n \n \n (995) \n \n \n 2,973 \n \n \n \n \n Cash flows from investing activities \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Acquisition of property, plant and equipment \n \n \n 22 \n \n \n (76) \n \n \n (1) \n \n \n \n \n Acquisition of intangible assets \n \n \n 23 \n \n \n (1,123) \n \n \n (893) \n \n \n \n \n Issue of subordinated loans \n \n \n \n \n \n - \n \n \n (6,500) \n \n \n \n \n Increase in investment in group undertakings \n \n \n \n \n \n (3,000) \n \n \n (4,500) \n \n \n \n \n Net cash used in investing activities \n \n \n \n \n \n (4,199) \n \n \n (11,894) \n \n \n \n \n Cash flows from financing activities \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Proceeds from issue of loan notes \n \n \n 27 \n \n \n 5,975 \n \n \n 7,985 \n \n \n \n \n Payment of finance lease liabilities \n \n \n 37 \n \n \n (148) \n \n \n (117) \n \n \n \n \n Proceeds from issue of shares \n \n \n 29 \n \n \n 49 \n \n \n 98 \n \n \n \n \n Dividend paid \n \n \n 29 \n \n \n (337) \n \n \n (433) \n \n \n \n \n Net cash from financing activities \n \n \n \n \n \n 5,539 \n \n \n 7,533 \n \n \n \n \n Net increase / (decrease) in cash and cash equivalents \n \n \n \n \n \n 345 \n \n \n (1,388) \n \n \n \n \n Cash and cash equivalents at 1 January \n \n \n \n \n \n 373 \n \n \n 1,761 \n \n \n \n \n Cash and cash equivalents at 31 December \n \n \n \n \n \n 718 \n \n \n 373 \n \n \n \n \n Notes to the Consolidated and Company Financial Statements \n For the year ended 31 December 2024 \n 1. Reporting entity \n Manx Financial Group PLC (\"Company\") is a company incorporated in the Isle of Man. The Company's registered office is at Clarendon House, Victoria Street, Douglas, Isle of Man, IM1 2LN. The consolidated financial statements of the Company for the year ended 31 December 2024 comprise the Company and its subsidiaries (\"Group\") including Conister Bank Limited (the \"Bank\"). The Group is primarily involved in the provision of financial services. \n The Company's financial statements are the separate financial statements of the Company. \n 2. Basis of accounting \n The consolidated and the separate financial statements of the Company have been prepared in accordance with international accounting standards in accordance with UK-adopted international accounting standards (\"UK-adopted IFRS\" or \"IFRSs\"), on a going concern basis as disclosed in the Directors' Report. \n 3. Functional and presentation currency \n These financial statements are presented in pounds sterling, which is the Company's functional currency. All amounts have been rounded to the nearest thousand, unless otherwise indicated. All subsidiaries of the Group have pounds sterling as their functional currency. \n 4. Use of judgements and estimates \n The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. \n Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. \n Assumptions and estimation uncertainties \n Information about assumptions and estimation uncertainties at year-end that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities in the next financial year is included in the following notes: \n §  Note 45(G)(vi) and Note 7(A) - key assumptions of Expected Credit Loss (\"ECL\") allowance for loans and advances to customers and assessment of impairment allowances where loans are in default or arrears. \n 5. Financial instruments - Classification \n For description of how the Group classifies financial assets and liabilities, see note 45(G)(ii). \n The following table provides reconciliation between line items in the statement of financial position and categories of financial instruments. \n \n \n \n \n \n \n \n \n \n \n FVOCI - \n \n \n \n \n \n Total \n \n \n \n \n \n \n \n Designated \n \n \n debt \n \n \n Amortised \n \n \n carrying \n \n \n \n \n Group \n \n \n as at FVTPL \n \n \n instruments \n \n \n cost \n \n \n amount \n \n \n \n \n 31 December 2024 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n \n \n Cash and cash equivalents \n \n \n - \n \n \n - \n \n \n 16,199 \n \n \n 16,199 \n \n \n \n \n Debt securities \n \n \n - \n \n \n 79,140 \n \n \n - \n \n \n 79,140 \n \n \n \n \n Equity held at Fair Value Through Profit or Loss \n \n \n 154 \n \n \n - \n \n \n - \n \n \n 154 \n \n \n \n \n Loans and advances to customers \n \n \n - \n \n \n - \n \n \n 372,358 \n \n \n 372,358 \n \n \n \n \n Trade and other receivables \n \n \n - \n \n \n - \n \n \n 7,312 \n \n \n 7,312 \n \n \n \n \n Total financial assets \n \n \n 154 \n \n \n 79,140 \n \n \n 395,869 \n \n \n 475,163 \n \n \n \n \n Deposits from customers \n \n \n - \n \n \n - \n \n \n 405,166 \n \n \n 405,166 \n \n \n \n \n Creditor and accrued charges \n \n \n - \n \n \n - \n \n \n 9,679 \n \n \n 9,679 \n \n \n \n \n Loan notes \n \n \n - \n \n \n - \n \n \n 45,292 \n \n \n 45,292 \n \n \n \n \n Total financial liabilities \n \n \n - \n \n \n - \n \n \n 460,137 \n \n \n 460,137 \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n FVOCI - \n \n \n \n \n \n Total \n \n \n \n \n \n \n \n Designated \n \n \n debt \n \n \n Amortised \n \n \n carrying \n \n \n \n \n Group \n \n \n as at FVTPL \n \n \n instruments \n \n \n cost \n \n \n amount \n \n \n \n \n 31 December 2023 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n \n \n Cash and cash equivalents \n \n \n - \n \n \n - \n \n \n 12,107 \n \n \n 12,107 \n \n \n \n \n Debt securities \n \n \n - \n \n \n 76,129 \n \n \n - \n \n \n 76,129 \n \n \n \n \n Equity held at Fair Value Through Profit or Loss \n \n \n 138 \n \n \n - \n \n \n - \n \n \n 138 \n \n \n \n \n Loans and advances to customers \n \n \n - \n \n \n - \n \n \n 362,653 \n \n \n 362,653 \n \n \n \n \n Trade and other receivables \n \n \n - \n \n \n - \n \n \n 8,227 \n \n \n 8,227 \n \n \n \n \n Total financial assets \n \n \n 138 \n \n \n 76,129 \n \n \n 382,987 \n \n \n 459,254 \n \n \n \n \n Deposits from customers \n \n \n - \n \n \n - \n \n \n 390,421 \n \n \n 390,421 \n \n \n \n \n Creditor and accrued charges \n \n \n - \n \n \n - \n \n \n 14,409 \n \n \n 14,409 \n \n \n \n \n Deferred consideration \n \n \n 20 \n \n \n - \n \n \n - \n \n \n 20 \n \n \n \n \n Loan notes \n \n \n - \n \n \n - \n \n \n 39,317 \n \n \n 39,317 \n \n \n \n \n Total financial liabilities \n \n \n 20 \n \n \n - \n \n \n 444,147 \n \n \n 444,167 \n \n \n \n \n At 31 December 2024 and 31 December 2023, all financial instruments were carried at amortised cost in the separate financial statements. \n 6. Financial instruments - Fair values \n For description of the Group's fair value measurement accounting policy, see note 44(G)(v). \n The following table shows the carrying amounts and fair values of Group financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value. \n \n \n \n \n \n \n \n Carrying \n \n \n \n \n \n Fair value \n \n \n \n \n \n \n \n \n \n \n \n \n \n amount \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Total \n \n \n Level 1 \n \n \n Level 2 \n \n \n Level 3 \n \n \n Total \n \n \n \n \n 31 December 2024 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n \n \n Financial assets measured at fair value \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Debt securities \n \n \n 79,140 \n \n \n - \n \n \n 79,140 \n \n \n - \n \n \n 79,140 \n \n \n \n \n Equity held at Fair Value Through Profit or Loss \n \n \n 154 \n \n \n - \n \n \n - \n \n \n 154 \n \n \n 154 \n \n \n \n \n \n \n \n 79,294 \n \n \n - \n \n \n 79,140 \n \n \n 154 \n \n \n 79,294 \n \n \n \n \n   \n \n \n \n \n \n \n \n Carrying \n \n \n \n \n \n Fair value \n \n \n \n \n \n \n \n \n \n \n \n \n \n amount \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Total \n \n \n Level 1 \n \n \n Level 2 \n \n \n Level 3 \n \n \n Total \n \n \n \n \n 31 December 2023 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n \n \n Financial assets measured at fair value \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Debt securities \n \n \n 76,129 \n \n \n - \n \n \n 76,129 \n \n \n - \n \n \n 76,129 \n \n \n \n \n Equity held at Fair Value Through Profit or Loss \n \n \n 138 \n \n \n - \n \n \n - \n \n \n 138 \n \n \n 138 \n \n \n \n \n \n \n \n 76,267 \n \n \n - \n \n \n 76,129 \n \n \n 138 \n \n \n 76,267 \n \n \n \n \n All Company financial assets and liabilities carrying amounts are reasonable approximation of fair value. \n Measurement of fair values \n i. Valuation techniques and significant unobservable inputs \n \n \n \n \n Type \n \n \n Valuation technique \n \n \n Significant unobservable inputs \n \n \n Inter-relationship between \n significant unobservable inputs \n and fair value measurement \n \n \n \n \n Debt securities \n \n \n Market comparison / discounted cash flow: The fair value is estimated considering a net present value calculated using discount rates derived from quoted yields of securities with similar maturity and credit rating that are \n traded in active markets. \n \n \n Not applicable. \n \n \n Not applicable. \n \n \n \n \n Equities at Fair Value Through Profit or Loss \n \n \n Net asset value \n \n \n Expected net cash flows derived from the entity \n \n \n The estimated fair value would increase (decrease) if the expected cash flows were higher (lower). \n \n \n \n \n ii. Level 3 recurring fair values \n Reconciliation of Level 3 fair values \n The following table shows a reconciliation from the opening balances to the closing balances for Level 3 fair values. \n \n \n \n \n \n \n \n 2024 \n \n \n 2023 \n \n \n \n \n \n \n \n £000 \n \n \n £000 \n \n \n \n \n Balance at 1 January \n \n \n 20 \n \n \n 262 \n \n \n \n \n Finance costs \n \n \n 0 \n \n \n 4 \n \n \n \n \n Net change in fair value (unrealised) \n \n \n - \n \n \n (179) \n \n \n \n \n \n \n \n 20 \n \n \n 87 \n \n \n \n \n Payment (note 26) \n \n \n (20) \n \n \n (67) \n \n \n \n \n Balance at 31 December \n \n \n - \n \n \n 20 \n \n \n \n \n Sensitivity analysis \n For the fair value of contingent consideration, reasonably possible changes at the reporting date to one of the significant unobservable inputs, holding other inputs constant would have the following effects. \n \n \n \n \n \n \n \n Profit or loss \n \n \n \n \n \n \n \n Increase \n \n \n Decrease \n \n \n \n \n 31 December 2024 \n \n \n £000 \n \n \n £000 \n \n \n \n \n Expected cash flows (10.0% movement) \n \n \n - \n \n \n - \n \n \n \n \n Risk-adjusted discount rate (1.0% movement) \n \n \n - \n \n \n - \n \n \n \n \n   \n \n \n \n \n \n \n \n Profit or loss \n \n \n \n \n \n \n \n Increase \n \n \n Decrease \n \n \n \n \n 31 December 2023 \n \n \n £000 \n \n \n £000 \n \n \n \n \n Expected cash flows (10.0% movement) \n \n \n 2 \n \n \n (2) \n \n \n \n \n Risk-adjusted discount rate (1.0% movement) \n \n \n - \n \n \n - \n \n \n \n \n 7. Financial risk review \n Risk management \n This note presents information about the Group's exposure to financial risks and the Group's management of capital. For information on the Group and Company's financial risk management framework, see note 43. \n A. Group Credit risk \n For definition of credit risk and information on how credit risk is mitigated by the Group, see note 43. \n i. Credit quality analysis \n Loans and advances to customers \n Explanation of the terms 'Stage 1', 'Stage 2' and 'Stage 3' is included in note 44(G)(vi). \n An analysis of the credit risk on loans and advances to customers is as follows: \n \n \n \n \n Group \n \n \n \n \n \n 2024 \n \n \n \n \n \n \n \n \n \n \n \n 2023 \n \n \n \n \n \n \n \n \n \n \n \n \n \n Stage 1 \n \n \n Stage 2 \n \n \n Stage 3 \n \n \n Total \n \n \n Stage 1 \n \n \n Stage 2 \n \n \n Stage 3 \n \n \n Total \n \n \n \n \n \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n \n \n Grade A \n \n \n 327,561 \n \n \n 3,968 \n \n \n - \n \n \n 331,529 \n \n \n 341,953 \n \n \n - \n \n \n - \n \n \n 341,953 \n \n \n \n \n Grade B \n \n \n - \n \n \n 19,836 \n \n \n 5,932 \n \n \n 25,768 \n \n \n - \n \n \n 7,822 \n \n \n 3,700 \n \n \n 11,522 \n \n \n \n \n Grade C \n \n \n - \n \n \n 5 \n \n \n 35,268 \n \n \n 35,273 \n \n \n - \n \n \n 2 \n \n \n 28,791 \n \n \n 28,793 \n \n \n \n \n Gross value \n \n \n 327,561 \n \n \n 23,809 \n \n \n 41,200 \n \n \n 392,570 \n \n \n 341,953 \n \n \n 7,824 \n \n \n 32,491 \n \n \n 382,268 \n \n \n \n \n Allowance for impairment \n \n \n (688) \n \n \n (36) \n \n \n (19,488) \n \n \n (20,212) \n \n \n (184) \n \n \n (6) \n \n \n (19,425) \n \n \n (19,615) \n \n \n \n \n Carrying value \n \n \n 326,873 \n \n \n 23,773 \n \n \n 21,712 \n \n \n 372,358 \n \n \n 341,769 \n \n \n 7,818 \n \n \n 13,066 \n \n \n 362,653 \n \n \n \n \n Loans are graded A to C depending on the level of risk. Grade A relates to agreements with the lowest risk, Grade B with medium risk and Grade C relates to agreements with the highest of risk. \n The following table sets out information about the overdue status of loans and advances to customers in Stage 1, 2 and 3: \n \n \n \n \n Group \n \n \n \n \n \n 2024 \n \n \n \n \n \n \n \n \n \n \n \n 2023 \n \n \n \n \n \n \n \n \n \n \n \n \n \n Stage 1 \n \n \n Stage 2 \n \n \n Stage 3 \n \n \n Total \n \n \n Stage 1 \n \n \n Stage 2 \n \n \n Stage 3 \n \n \n Total \n \n \n \n \n 31 December \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n \n \n Current \n \n \n 314,542 \n \n \n - \n \n \n - \n \n \n 314,542 \n \n \n 333,740 \n \n \n - \n \n \n - \n \n \n 333,740 \n \n \n \n \n Overdue < 30 days \n \n \n 13,019 \n \n \n - \n \n \n - \n \n \n 13,019 \n \n \n 8,213 \n \n \n - \n \n \n - \n \n \n 8,213 \n \n \n \n \n Overdue > 30 days \n \n \n - \n \n \n 19,851 \n \n \n 45,158 \n \n \n 65,009 \n \n \n - \n \n \n 7,824 \n \n \n 32,491 \n \n \n 40,315 \n \n \n \n \n \n \n \n 327,561 \n \n \n 19,851 \n \n \n 45,158 \n \n \n 392,570 \n \n \n 341,953 \n \n \n 7,824 \n \n \n 32,491 \n \n \n 382,268 \n \n \n \n \n For Stage 3 loans and advances, the Bank holds collateral with a value of £11,982,000 (2023: £13,410,000) representing security cover of 66.0% (2023: 66.0%). \n Debt securities, cash and cash equivalents \n The following table sets out the credit quality of liquid assets: \n \n \n \n \n Group \n \n \n 2024 \n £000 \n \n \n 2023 \n £000 \n \n \n \n \n Government bonds and treasury bills \n \n \n   \n \n \n \n \n \n \n \n Rated A to A+ \n \n \n 79,140 \n \n \n 76,129 \n \n \n \n \n Cash and cash equivalents \n \n \n   \n \n \n \n \n \n \n \n Rated A to A+ \n \n \n 16,199 \n \n \n 12,107 \n \n \n \n \n Trade and other receivables \n \n \n   \n \n \n \n \n \n \n \n Unrated \n \n \n 7,312 \n \n \n 8,227 \n \n \n \n \n \n \n \n 102,651 \n \n \n 96,463 \n \n \n \n \n The analysis has been based on Standard & Poor's ratings. The above debt securities, cash and cash equivalents are considered to be Stage 1 as there is no evidence of significant deterioration in credit quality and hence no material expected credit loss allowance is observed. \n ii. Collateral and other credit enhancements \n The Group holds collateral in the form of the underlying assets (typically private and commercial vehicles, plant and machinery) to loan arrangements as security for HP, finances leases, vehicle stocking plans, block discounting, wholesale funding arrangements, integrated wholesale funding arrangements and secured commercial loan balances, which are sub-categories of loans and advances to customers. In addition, the Group will take debentures, mortgages, personal and corporate guarantees, fixed and floating charges on specific assets such as cash and shares. \n The terms of enforcing such security can only occur on default, and when realised can only be used to settle the amount of debt and related collection fees. On occasion the Bank may realise a surplus if the defaulting party loses title to the underlying security as part of enforcement. In addition, the commission share schemes have an element of capital indemnified. \n As at 31 December 2024, 28.7% of loans and advances had an element of capital indemnification (2023: 13.0%). At the time of granting credit within the sub-categories listed above, the loan balances due are secured over the underlying assets held as collateral. \n At the time of granting credit within the sub-categories listed above, the loan balances due are secured over the underlying assets held as collateral (see note 20 for further details). Collateral is valued at the time of borrowing, and is not individually valued at each reporting date but fair value groups of similar collateral are considered as part of the impairment testing model. \n For portfolios where the Group has never had a default in its history or has robust credit enhancements such as credit insurance or default indemnities for the entire portfolio, then no IFRS 9 provision is made. At 2024 year-end, 31.0% had such credit enhancements (2023: 28.0%). \n The following table sets out the principal types of collateral held against different types of financial assets. \n \n \n \n \n Group \n \n \n 2024 \n \n \n 2023 \n \n \n \n \n \n \n \n % \n \n \n % \n \n \n Principal type of collateral held \n \n \n \n \n \n \n HP balances \n \n \n 100 \n \n \n 100 \n \n \n Property and equipment \n \n \n \n \n Finance lease balances \n \n \n 100 \n \n \n 100 \n \n \n Property and equipment \n \n \n \n \n Unsecured personal loans \n \n \n - \n \n \n - \n \n \n None \n \n \n \n \n Vehicle stocking plans \n \n \n 100 \n \n \n 100 \n \n \n Motor vehicles \n \n \n \n \n Wholesale funding arrangements \n \n \n 100 \n \n \n 100 \n \n \n Floating charges over corporate assets \n \n \n \n \n Block discounting \n \n \n 100 \n \n \n 100 \n \n \n Floating charges over corporate assets \n \n \n \n \n Secured commercial loans \n \n \n 100 \n \n \n 100 \n \n \n Floating charges over corporate assets \n \n \n \n \n Secured personal loans \n \n \n 100 \n \n \n 100 \n \n \n Property \n \n \n \n \n Government backed loans \n \n \n 70 - 100 \n \n \n 70 - 100 \n \n \n Government guarantee \n \n \n \n \n Property secured \n \n \n 100 \n \n \n 100 \n \n \n Property \n \n \n \n \n There have been no significant changes in the quality of collateral as a result of a deterioration or changes to the Group's collateral policies during the reporting period. \n iii. Amounts arising from ECL \n Inputs, assumptions and techniques used for estimating impairment \n See accounting policy in note 45(G)(vi). \n Significant increase in credit risk \n When determining whether the risk of default on a financial instrument has increased significantly since initial recognition, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Group's historical experience and expert credit assessment and including forward looking information. \n ▪        A Significant Increase in Credit Risk (\"SICR\") is always deemed to occur when the borrower is 30 days past due on its contractual payments. If the Group becomes aware ahead of this time of non-compliance or financial difficulties of the borrower, such as loss of employment, avoiding contact with the Group then a SICR has also deemed to occur. \n ▪        A receivable is always deemed to be in default and credit-impaired when the borrower is 90 days past due on its contractual payments or earlier if the Group becomes aware of severe financial difficulties such as bankruptcy, individual voluntary arrangements, abscond or disappearance, fraudulent activity or other similar events. \n Credit risk grades \n The Group allocates each exposure to a credit risk grade based on a variety of data that is determined to be predictive of the risk of default and applying experienced credit judgement. Credit risk grades are defined using qualitative and quantitative factors that are indicative of risk of default. These factors vary depending on the nature of the exposure and the type of borrower. \n Credit risk grades are defined and calibrated such that the risk of default occurring increases exponentially as the credit risk grade deteriorates. Loans are graded A to C depending on the level of risk. Grade A relates to agreements with the lowest risk, Grade B with medium risk and Grade C relates to agreements with the highest of risk. \n Each exposure is allocated to a credit risk grade on initial recognition based on available information about the borrower. Exposures are subject to ongoing monitoring, which may result in an exposure being moved to a different credit risk grade. The monitoring typically involves the use of the following data: \n \n \n \n \n Corporate exposures \n \n \n Retail exposures \n \n \n All exposures \n \n \n \n \n Information obtained during periodic review of customer files - e.g. audited financial statements, management accounts, budgets and projections. Examples of areas of particular focus are: gross profit margins, financial leverage ratios, debt service coverage, compliance with covenants \n \n \n Internally collected data on customer behaviour - e.g. repayment behaviour \n \n \n Payment record - this includes overdue status as well as a range of variables about payment ratios \n \n \n \n \n Data from credit reference agencies \n \n \n Affordability matrix \n \n \n Requests for and granting of forbearance \n \n \n \n \n \n \n \n External data from credit reference agencies, including industry-standard credit scores \n \n \n Existing forecast changes in business, financial and economic conditions \n \n \n \n \n Definition of default \n The Group considers a financial asset to be in default when: \n ▪        the borrower is unlikely to pay its credit obligations to the Group in full, without recourse by the Group to actions such as realising security (if any is held); \n ▪        the borrower is more than 90 days past due on any material credit obligation to the Group; or \n ▪        it is becoming probable that the borrower will restructure the asset as a result of bankruptcy due to the borrower's inability to pay its credit obligations. \n In assessing whether a borrower is in default, the Group considers indicators that are: \n ▪        qualitative: e.g. breaches of covenant; \n ▪        quantitative: e.g. overdue status and non-payment on another obligation of the same issuer to the Group; and \n ▪        based on data developed internally and obtained from external sources. \n Inputs into the assessment of whether a financial instrument is in default and their significant may vary over time to reflect changes in circumstances. The definition of default largely aligns with that applied by the Group for regulatory capital purposes. \n Incorporation of forward-looking information \n The Group incorporates forward looking information into the measurement of ECL. \n The Group has identified and documented key drivers of credit risk and credit losses within its financial instruments and using an analysis of historical data, has estimated the relationship between macroeconomic variables and credit risk and credit losses. The key drivers for credit risk for corporate, retail and wholesale portfolios include gross domestic product (GDP) growth, unemployment rates and consumer price index (CPI) inflation. The Group estimates each key driver for credit risk over the active forecast period of three years. The table below lists the UK macroeconomic assumption used in the base scenarios over the three-year forecast period: \n \n \n \n \n 31 December 2024 \n \n \n 2025 \n \n \n 2026 \n \n \n 2027 \n \n \n \n \n GDP growth rate \n \n \n 2.0 \n \n \n 1.0 \n \n \n 1.3 \n \n \n \n \n CPI inflation \n \n \n 4.2 \n \n \n 2.4 \n \n \n 1.8 \n \n \n \n \n Unemployment rate \n \n \n 4.8 \n \n \n 4.9 \n \n \n 4.9 \n \n \n \n \n   \n \n \n \n \n 31 December 2023 \n \n \n 2024 \n \n \n 2025 \n \n \n 2026 \n \n \n \n \n GDP growth rate \n \n \n 0.5 \n \n \n 1.0 \n \n \n 1.3 \n \n \n \n \n CPI inflation \n \n \n 4.2 \n \n \n 2.4 \n \n \n 1.8 \n \n \n \n \n Unemployment rate \n \n \n 4.8 \n \n \n 4.9 \n \n \n 4.9 \n \n \n \n \n Predicted relationships between the key indicators and default and loss rates on various portfolios of financial assets have been developed based on analysing historical data over the past 8 years. \n iv. Concentration of credit risk \n Geographical \n Lending is restricted to individuals and entities with Isle of Man, UK or Channel Islands addresses. \n Segmental \n The Bank is exposed to credit risk with regard to customer loan accounts, comprising HP and finance lease balances, unsecured personal loans, secured commercial loans, block discounting, vehicle stocking plan loans and wholesale funding agreements. In addition, the Bank lends via significant introducers into the UK. There was one introducer that accounted for more than 14% of the Bank's total lending portfolio at the end of 31 December 2024 (2023: 20.0%). Advances to a single counterparty is restricted to 25% of the Bank's Large Exposure Capital Buffer (LECB) in line with FSA direction. \n B. Group Liquidity risk \n For the definition of liquidity risk and information on how liquidity risk is managed by the Group, see note 43. \n i. Exposure to liquidity risk \n The key measure used by the Group for managing liquidity risk is the ratio of net liquid assets to deposits from customers and short-term funding. The Group aims to maintain the ratio at no less than 13.7% compared to FSA requirement of not less than 10%. For this purpose, net liquid assets includes cash and cash equivalents and investment-grade debt securities for which there is an active and liquid market. \n Details of the reported Group ratio of net liquid assets to deposits from customers at the reporting date and during the reporting year were as follows: \n \n \n \n \n \n \n \n 2024 \n \n \n 2023 \n \n \n \n \n At 31 December \n \n \n 24.0% \n \n \n 23.0% \n \n \n \n \n Average for the year \n \n \n 23.0% \n \n \n 19.0% \n \n \n \n \n Maximum for the year \n \n \n 27.0% \n \n \n 23.0% \n \n \n \n \n Minimum for the year \n \n \n 20.0% \n \n \n 15.0% \n \n \n \n \n ii. Maturity analysis for financial liabilities and financial assets \n The table below shows the Group's financial liabilities classified by their earliest possible contractual maturity, on an undiscounted basis including interest due at the end of the deposit term. Based on historical data, the Group's expected actual cash flow from these items varies from this analysis due to the expected re-investment of maturing customer deposits. \n Residual contractual maturities of financial liabilities as at the reporting date (undiscounted): \n \n \n \n \n \n \n \n Sight- \n \n \n >8 days \n \n \n >1 month \n \n \n >3 months \n \n \n >6 months \n \n \n >1 year \n \n \n >3 years \n \n \n \n \n \n \n \n \n \n \n 31 December 2024 \n \n \n 8 days \n \n \n - 1 month \n \n \n - 3 months \n \n \n - 6 months \n \n \n - 1 year \n \n \n - 3 years \n \n \n - 5 years \n \n \n >5 years \n \n \n Total \n \n \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n \n \n Deposits \n \n \n 9,016 \n \n \n 13,010 \n \n \n 44,111 \n \n \n 97,353 \n \n \n 166,118 \n \n \n 79,123 \n \n \n 16,561 \n \n \n - \n \n \n 425,292 \n \n \n \n \n Other liabilities \n \n \n 71 \n \n \n 204 \n \n \n 8,073 \n \n \n 4,246 \n \n \n 13,657 \n \n \n 24,402 \n \n \n 9,719 \n \n \n 340 \n \n \n 60,712 \n \n \n \n \n Total liabilities \n \n \n 9,087 \n \n \n 13,214 \n \n \n 52,184 \n \n \n 101,599 \n \n \n 179,775 \n \n \n 103,525 \n \n \n 26,280 \n \n \n 340 \n \n \n 486,004 \n \n \n \n \n   \n \n \n \n \n \n \n \n Sight- \n \n \n >8 days \n \n \n >1 month \n \n \n >3 months \n \n \n >6 months \n \n \n >1 year \n \n \n >3 years \n \n \n \n \n \n \n \n \n \n \n 31 December 2023 \n \n \n 8 days \n \n \n - 1 month \n \n \n - 3 months \n \n \n - 6 months \n \n \n - 1 year \n \n \n - 3 years \n \n \n - 5 years \n \n \n >5 years \n \n \n Total \n \n \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n \n \n Deposits \n \n \n 17,261 \n \n \n 13,767 \n \n \n 29,718 \n \n \n 77,801 \n \n \n 122,719 \n \n \n 125,205 \n \n \n 24,076 \n \n \n - \n \n \n 410,547 \n \n \n \n \n Other liabilities \n \n \n 55 \n \n \n 257 \n \n \n 1,407 \n \n \n 6,395 \n \n \n 18,997 \n \n \n 18,188 \n \n \n 13,108 \n \n \n 554 \n \n \n 58,961 \n \n \n \n \n Total liabilities \n \n \n 17,316 \n \n \n 14,024 \n \n \n 31,125 \n \n \n 84,196 \n \n \n 141,716 \n \n \n 143,393 \n \n \n 37,184 \n \n \n 554 \n \n \n 469,508 \n \n \n \n \n The table below shows the carrying amount of the Group's assets and liabilities by their expected maturities. \n Expected maturity of assets and liabilities at the reporting date: \n \n \n \n \n \n \n \n Sight- \n \n \n >8 days \n \n \n >1 month \n \n \n >3 months \n \n \n >6 months \n \n \n >1 year \n \n \n >3 years \n \n \n \n \n \n \n \n \n \n \n 31 December 2024 \n \n \n 8 days \n \n \n - 1 month \n \n \n - 3 months \n \n \n - 6 months \n \n \n - 1 year \n \n \n - 3 years \n \n \n - 5 years \n \n \n >5 years \n \n \n Total \n \n \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n \n \n \n \n Assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Cash \n \n \n 16,199 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 16,199 \n \n \n \n \n Debt securities \n \n \n 4,997 \n \n \n 16,461 \n \n \n 47,624 \n \n \n - \n \n \n 4,993 \n \n \n - \n \n \n 5,065 \n \n \n - \n \n \n 79,140 \n \n \n \n \n Loans and advances \n \n \n 21,559 \n \n \n 35,642 \n \n \n 45,541 \n \n \n 48,415 \n \n \n 57,042 \n \n \n 125,667 \n \n \n 37,316 \n \n \n 1,176 \n \n \n 372,358 \n \n \n \n \n Other assets \n \n \n 154 \n \n \n - \n \n \n - \n \n \n - \n \n \n 9,063 \n \n \n - \n \n \n 4,682 \n \n \n 16,194 \n \n \n 30,093 \n \n \n \n \n Total assets \n \n \n 42,909 \n \n \n 52,103 \n \n \n 93,165 \n \n \n 48,415 \n \n \n 71,098 \n \n \n 125,667 \n \n \n 47,063 \n \n \n 17,370 \n \n \n 497,790 \n \n \n \n \n Liabilities \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Deposits \n \n \n 8,639 \n \n \n 11,993 \n \n \n 41,477 \n \n \n 93,949 \n \n \n 161,428 \n \n \n 72,352 \n \n \n 15,328 \n \n \n - \n \n \n 405,166 \n \n \n \n \n Other liabilities \n \n \n - \n \n \n - \n \n \n 7,600 \n \n \n 3,597 \n \n \n 12,427 \n \n \n 22,002 \n \n \n 9,345 \n \n \n 340 \n \n \n 55,311 \n \n \n \n \n Total liabilities \n \n \n 8,639 \n \n \n 11,993 \n \n \n 49,077 \n \n \n 97,546 \n \n \n 173,855 \n \n \n 94,354 \n \n \n 24,673 \n \n \n 340 \n \n \n 460,477 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Sight- \n \n \n >8 days \n \n \n >1 month \n \n \n >3 months \n \n \n >6 months \n \n \n >1 year \n \n \n >3 years \n \n \n \n \n \n \n \n \n \n \n 31 December 2023 \n \n \n 8 days \n \n \n - 1 month \n \n \n - 3 months \n \n \n - 6 months \n \n \n - 1 year \n \n \n - 3 years \n \n \n - 5 years \n \n \n >5 years \n \n \n Total \n \n \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n \n \n Assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Cash \n \n \n 12,107 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 12,107 \n \n \n \n \n Debt securities \n \n \n 3,499 \n \n \n 7,976 \n \n \n 28,275 \n \n \n 36,379 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 76,129 \n \n \n \n \n Loans and advances \n \n \n 17,720 \n \n \n 23,854 \n \n \n 41,805 \n \n \n 42,293 \n \n \n 54,800 \n \n \n 131,666 \n \n \n 49,445 \n \n \n 1,070 \n \n \n 362,653 \n \n \n \n \n Other assets \n \n \n 180 \n \n \n - \n \n \n - \n \n \n - \n \n \n 9,580 \n \n \n - \n \n \n 5,057 \n \n \n 14,999 \n \n \n 29,816 \n \n \n \n \n Total assets \n \n \n 33,506 \n \n \n 31,830 \n \n \n 70,080 \n \n \n 78,672 \n \n \n 64,380 \n \n \n 131,666 \n \n \n 54,502 \n \n \n 16,069 \n \n \n 480,705 \n \n \n \n \n Liabilities \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Deposits \n \n \n 16,884 \n \n \n 12,750 \n \n \n 27,084 \n \n \n 74,397 \n \n \n 118,029 \n \n \n 118,434 \n \n \n 22,843 \n \n \n - \n \n \n 390,421 \n \n \n \n \n Other liabilities \n \n \n - \n \n \n 100 \n \n \n 1,000 \n \n \n 5,800 \n \n \n 18,421 \n \n \n 16,160 \n \n \n 12,265 \n \n \n 554 \n \n \n 54,300 \n \n \n \n \n Total liabilities \n \n \n 16,884 \n \n \n 12,850 \n \n \n 28,084 \n \n \n 80,197 \n \n \n 136,450 \n \n \n 134,594 \n \n \n 35,108 \n \n \n 554 \n \n \n 444,721 \n \n \n \n \n Company \n All the Company's assets (excluding Investment in subsidiaries, Property, plant and equipment, Intangible assets, Investment in subsidiaries and Subordinated loans) are due within one year. The Subordinated loans are due in more than five years. \n All the Company's creditors (excluding Loan notes) are due within one year. The maturity profile £16 million of loan notes are due within one year, £27 million within 3 years and £2 million within five years. \n iii. Liquidity reserves \n The following table sets out the components of the Group's liquidity reserves: \n \n \n \n \n \n \n \n 2024 \n \n \n 2024 \n \n \n 2023 \n \n \n 2023 \n \n \n \n \n \n \n \n Carrying \n \n \n Fair \n \n \n Carrying \n \n \n Fair \n \n \n \n \n \n \n \n amount \n \n \n value \n \n \n amount \n \n \n value \n \n \n \n \n \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n \n \n Balances with other banks \n \n \n 16,199 \n \n \n 16,199 \n \n \n 12,107 \n \n \n 12,107 \n \n \n \n \n Unencumbered debt securities \n \n \n 79,140 \n \n \n 79,140 \n \n \n 76,129 \n \n \n 76,129 \n \n \n \n \n Total liquidity reserves \n \n \n 95,339 \n \n \n 95,339 \n \n \n 88,236 \n \n \n 88,236 \n \n \n \n \n C. Group Market risk \n For the definition of market risk and information on how the Group manages the market risks of trading and non ‑ trading portfolios, see note 43. \n The following table sets out the allocation of assets and liabilities subject to market risk between trading and non-trading portfolios: \n \n \n \n \n \n \n \n \n \n \n Market risk measure \n \n \n \n \n \n \n \n \n \n \n Carrying \n \n \n Trading \n \n \n Non-trading \n \n \n \n \n 31 December 2024 \n \n \n amount \n \n \n portfolios \n \n \n portfolios \n \n \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n \n \n Assets subject to market risk \n \n \n \n \n \n \n \n \n \n \n \n \n \n Debt securities \n \n \n 79,140 \n \n \n - \n \n \n 79,140 \n \n \n \n \n Equity held at Fair Value Through Profit or Loss \n \n \n 154 \n \n \n - \n \n \n 154 \n \n \n \n \n Total \n \n \n 79,294 \n \n \n   \n \n \n 79,294 \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Market risk measure \n \n \n \n \n \n \n \n \n \n \n Carrying \n \n \n Trading \n \n \n Non-trading \n \n \n \n \n 31 December 2023 \n \n \n amount \n \n \n portfolios \n \n \n portfolios \n \n \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n \n \n Assets subject to market risk \n \n \n \n \n \n \n \n \n \n \n \n \n \n Debt securities \n \n \n 76,129 \n \n \n - \n \n \n 76,129 \n \n \n \n \n Equity held at Fair Value Through Profit or Loss \n \n \n 138 \n \n \n - \n \n \n 138 \n \n \n \n \n Total \n \n \n 76,267 \n \n \n - \n \n \n 76,267 \n \n \n \n \n i. Exposure to interest rate risk \n The following tables present the interest rate mismatch position between assets and liabilities over the respective maturity dates. The maturity dates are presented on a worst-case basis, with assets being recorded at their latest maturity and deposits from customers at their earliest. \n \n \n \n \n \n \n \n Sight- \n \n \n >1 month \n \n \n >3 months \n \n \n >6 months \n \n \n >1 year \n \n \n >3 years \n \n \n \n \n \n Non- \n \n \n \n \n \n \n \n \n \n \n \n \n \n Interest \n \n \n \n \n \n \n \n \n \n \n 1 month - 3 months \n \n \n - 6 months \n \n \n - 1 year \n \n \n - 3 years \n \n \n - 5 years \n \n \n >5 years \n \n \n Bearing \n \n \n Total \n \n \n \n \n 31 December 2024 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n \n \n \n \n Assets \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Cash & cash equivalents \n \n \n 16,199 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 16,199 \n \n \n \n \n Debt securities \n \n \n 21,458 \n \n \n 47,624 \n \n \n - \n \n \n 4,993 \n \n \n - \n \n \n 5,065 \n \n \n - \n \n \n - \n \n \n 79,140 \n \n \n \n \n Loans and advances to customers \n \n \n 57,201 \n \n \n 45,541 \n \n \n 48,415 \n \n \n 57,042 \n \n \n 125,667 \n \n \n 37,316 \n \n \n 1,176 \n \n \n - \n \n \n 372,358 \n \n \n \n \n Other assets \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 30,093 \n \n \n 30,093 \n \n \n \n \n Total assets \n \n \n 94,858 \n \n \n 93,165 \n \n \n 48,415 \n \n \n 62,035 \n \n \n 125,667 \n \n \n 42,381 \n \n \n 1,176 \n \n \n 30,093 \n \n \n 497,790 \n \n \n \n \n Liabilities \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Deposits from customers \n \n \n 20,632 \n \n \n 41,477 \n \n \n 93,949 \n \n \n 161,428 \n \n \n 72,352 \n \n \n 15,328 \n \n \n - \n \n \n - \n \n \n 405,166 \n \n \n \n \n Other liabilities \n \n \n - \n \n \n 7,600 \n \n \n 3,597 \n \n \n 4,540 \n \n \n 22,002 \n \n \n 9,345 \n \n \n 46 \n \n \n 8,181 \n \n \n 55,311 \n \n \n \n \n Total liabilities \n \n \n 20,632 \n \n \n 49,077 \n \n \n 97,546 \n \n \n 165,968 \n \n \n 94,354 \n \n \n 24,673 \n \n \n 46 \n \n \n 8,181 \n \n \n 460,477 \n \n \n \n \n Interest rate sensitivity gap \n \n \n 74,226 \n \n \n 44,088 \n \n \n (49,131) \n \n \n (103,933) \n \n \n 31,313 \n \n \n 17,708 \n \n \n 1,130 \n \n \n 21,912 \n \n \n 37,313 \n \n \n \n \n Cumulative \n \n \n 74,226 \n \n \n 118,314 \n \n \n 69,183 \n \n \n (34,750) \n \n \n (3,437) \n \n \n 14,271 \n \n \n 15,401 \n \n \n 37,313 \n \n \n   \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Non- \n \n \n \n \n \n \n \n \n \n \n Sight- \n \n \n >1 month \n \n \n >3 months \n \n \n >6 months \n \n \n >1 year \n \n \n >3 years \n \n \n \n \n \n Interest \n \n \n \n \n \n \n \n 31 December 2023 \n \n \n 1 month \n \n \n - 3 months \n \n \n - 6 months \n \n \n - 1 year \n \n \n - 3 years \n \n \n - 5 years \n \n \n >5 years \n \n \n Bearing \n \n \n Total \n \n \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n \n \n Assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Cash & cash equivalents \n \n \n 12,107 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 12,107 \n \n \n \n \n Debt securities \n \n \n 11,475 \n \n \n 28,275 \n \n \n 36,379 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 76,129 \n \n \n \n \n Loans and advances to customers \n \n \n 41,574 \n \n \n 41,805 \n \n \n 42,293 \n \n \n 54,800 \n \n \n 131,666 \n \n \n 49,445 \n \n \n 1,070 \n \n \n - \n \n \n 362,653 \n \n \n \n \n Other assets \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 29,816 \n \n \n 29,816 \n \n \n \n \n Total assets \n \n \n 65,156 \n \n \n 70,080 \n \n \n 78,672 \n \n \n 54,800 \n \n \n 131,666 \n \n \n 49,445 \n \n \n 1,070 \n \n \n 29,816 \n \n \n 480,705 \n \n \n \n \n Liabilities \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Deposits from customers \n \n \n 29,634 \n \n \n 27,084 \n \n \n 74,397 \n \n \n 118,029 \n \n \n 118,434 \n \n \n 22,843 \n \n \n - \n \n \n - \n \n \n 390,421 \n \n \n \n \n Other liabilities \n \n \n 100 \n \n \n 1,000 \n \n \n 5,800 \n \n \n 5,370 \n \n \n 16,160 \n \n \n 12,265 \n \n \n 162 \n \n \n 13,443 \n \n \n 54,300 \n \n \n \n \n Total liabilities \n \n \n 29,734 \n \n \n 28,084 \n \n \n 80,197 \n \n \n 123,399 \n \n \n 134,594 \n \n \n 35,108 \n \n \n 162 \n \n \n 13,443 \n \n \n 444,721 \n \n \n \n \n Interest rate sensitivity gap \n \n \n 35,422 \n \n \n 41,996 \n \n \n (1,525) \n \n \n (68,599) \n \n \n (2,928) \n \n \n 14,337 \n \n \n 908 \n \n \n 16,373 \n \n \n 35,984 \n \n \n \n \n Cumulative \n \n \n 35,422 \n \n \n 77,418 \n \n \n 75,893 \n \n \n 7,294 \n \n \n 4,366 \n \n \n 18,703 \n \n \n 19,611 \n \n \n 35,984 \n \n \n - \n \n \n \n \n The Bank monitors the impact of changes in interest rates on interest rate mismatch positions using a method consistent with the FSA required reporting standard. The methodology applies weightings to the net interest rate sensitivity gap in order to quantify the impact of an adverse change in interest rates of 2% per annum (2023: 2.0%). The following tables set out the estimated total impact of such a change based on the mismatch at the reporting date: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Non- \n \n \n \n \n \n \n \n \n \n \n Sight- \n \n \n >1 month \n \n \n >3 months \n \n \n >6 months \n \n \n >1 year \n \n \n >3 years \n \n \n \n \n \n Interest \n \n \n \n \n \n \n \n \n \n \n 1 month \n \n \n - 3 months \n \n \n - 6 months \n \n \n - 1 year \n \n \n - 3 years \n \n \n - 5 years \n \n \n >5 years \n \n \n Bearing \n \n \n Total \n \n \n \n \n 31 December 2024 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n \n \n Interest rate sensitivity gap \n \n \n 74,226 \n \n \n 44,088 \n \n \n (49,131) \n \n \n (103,933) \n \n \n 31,313 \n \n \n 17,708 \n \n \n 1,130 \n \n \n 21,912 \n \n \n 37,313 \n \n \n \n \n Weighting \n \n \n - \n \n \n 0.003 \n \n \n 0.007 \n \n \n 0.014 \n \n \n 0.027 \n \n \n 0.054 \n \n \n 0.115 \n \n \n - \n \n \n - \n \n \n \n \n \n \n \n - \n \n \n 132 \n \n \n (344) \n \n \n (1,455) \n \n \n 845 \n \n \n 956 \n \n \n 130 \n \n \n - \n \n \n 264 \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Non- \n \n \n \n \n \n \n \n \n \n \n Sight- \n \n \n >1 month \n \n \n >3 months \n \n \n >6 months \n \n \n >1 year \n \n \n >3 years \n \n \n \n \n \n Interest \n \n \n \n \n \n \n \n 31 December 2023 \n \n \n 1 month \n \n \n - 3 months \n \n \n - 6 months \n \n \n - 1 year \n \n \n - 3 years \n \n \n - 5 years \n \n \n >5 years \n \n \n Bearing \n \n \n Total \n \n \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n \n \n Interest rate sensitivity gap \n \n \n 35,422 \n \n \n 41,996 \n \n \n (1,525) \n \n \n (68,599) \n \n \n (2,928) \n \n \n 14,337 \n \n \n 908 \n \n \n 16,373 \n \n \n 35,984 \n \n \n \n \n Weighting \n \n \n 0.000 \n \n \n 0.003 \n \n \n 0.007 \n \n \n 0.014 \n \n \n 0.027 \n \n \n 0.054 \n \n \n 0.115 \n \n \n - \n \n \n - \n \n \n \n \n \n \n \n - \n \n \n 126 \n \n \n (11) \n \n \n (960) \n \n \n (79) \n \n \n 774 \n \n \n 104 \n \n \n - \n \n \n (46) \n \n \n \n \n The interest rate profile of the Group's interest-bearing financial instruments as reported to the management of the Group is as follows; \n \n \n \n \n \n \n \n 2024 \n \n \n 2023 \n \n \n \n \n \n \n \n £000 \n \n \n £000 \n \n \n \n \n Fixed-rate instruments \n \n \n   \n \n \n \n \n \n \n \n Financial assets \n \n \n 467,697 \n \n \n 450,889 \n \n \n \n \n Financial liabilities \n \n \n 452,296 \n \n \n 431,278 \n \n \n \n \n \n \n \n 15,401 \n \n \n 19,611 \n \n \n \n \n The Group does not account for any fixed-rate financial assets or liabilities at FVTPL. A change of 1% in interest rates would have increased or decreased equity by £306,000 (2023: £280,000). This analysis assumes that all other variables, in particular foreign currency rates, remain constant. \n D. Group Capital Management \n i. Regulatory capital \n MFG and its subsidiaries maintain sufficient capital stock to cover risks inherent in their principal operating activities. The lead regulator of the Group's wholly owned subsidiary, the Bank, is the FSA. The FSA sets and monitors capital requirements for the Bank. The Bank maintains a capital base to meet the capital adequacy requirements of the FSA. There have been no changes to its approach to capital management from the prior year. \n The Bank's regulatory capital consists of the following elements. \n ▪        Common Equity Tier 1 (\"CET1\") capital, which includes ordinary share capital, retained earnings and reserves after adjustment for deductions for goodwill, intangible assets and intercompany receivable. \n ▪        Tier 2 capital, which includes collective impairment allowances up to the level set by the FSA, subordinated loan liabilities and gains on financial instruments carried at fair value. \n The Bank's Tier 1 and Total Capital regulatory ratios stood at 12.50% (2023: 11.52%) and 17.00% (2023: 15.90%) respectively as at 31 December 2024. The Bank complied with all capital requirements externally imposed on it in the year with minimum Tier 1 and Overall Capital ratio of 8.73% (2023: 8.73%) and 15.29% (2023: 15.29%) respectively. \n The FSA's approach to the measurement of capital adequacy is primarily based on monitoring the relationship of the capital resources requirement to available capital resources. The FSA sets individual capital guidance (\"ICG\") for the Bank in excess of the minimum capital resources requirement. A key input to the ICG setting process is the Bank's internal capital adequacy assessment process (\"ICAAP\"). \n The Bank is also regulated by the FCA in the UK for credit and brokerage related activities. \n ii. Capital allocation \n Management uses regulatory capital ratios to monitor its capital base. The allocation of capital between specific operations and activities is, to a large extent, driven by optimisation of the return achieved on the capital allocated. The amount of capital allocated to each operation or activity is based primarily on regulatory capital requirements. \n E. Company Financial Risk Review \n i. Credit risk \n The Company is exposed to credit risk primarily from deposits with banks and from its financing activities of Group entities. These balances include Trade and other receivables, Amounts due from Group undertakings, Investment in subsidiaries and Subordinated loans. Cash balances are held with institutions with a credit rating of A to A+. The Group's primary credit exposure is to the Bank. The Investment in subsidiary and subordinated loan balance counterparties are disclosed in Notes 31 and 35 respectively. Amounts due from Group undertakings relate to balances advanced to the Group's subsidiary (MVL) for the acquisition of other subsidiaries including PAL, BBSL, BLX and NRF. The Group manages its credit risk by ensuring that sufficient resources are allocated to credit management and capital allocation and using reputable financial institutions to hold its cash balances. \n ii. Liquidity risk \n The value and term of short-term assets are monitored against those of the Company's liabilities. The Company maintains sufficient liquid assets to meet liabilities as they fall due either by retaining Interest income from the Subordinated loan, Dividend income from subsidiary companies or raising funds through the issue of Loan notes. Amounts due to / from Group undertakings are unsecured, interest-free and repayable on demand. The capital on subordinated loan notes is repayable to the Company in more than 5 years. £16.0m (2023:£12.3m) of loan notes are repayable within one year. \n iii. Market risk \n The Company does not have exposure to foreign exchange risk as transactions are made in, and balances held in, Sterling. The Company has both interest-bearing assets and liabilities. In order to manage interest rate risk, the Companies Subordinated loans and Loan notes are charged exclusively at fixed rates. \n 8. Operating segments \n Segmental information is presented in respect of the Group's business segments. The Directors consider that the Group currently operates in one geographic segment comprising of the Isle of Man, UK and Channel Islands. The primary format, business segments, is based on the Group's management and internal reporting structure. The Directors consider that the Group operates in three (2023: three) product orientated segments in addition to its investing activities: Asset and Personal Finance (including provision of HP contracts, finance leases, personal loans, commercial loans, block discounting, vehicle stocking plans and wholesale funding agreements); Edgewater Associates Limited (provision of financial advice); and MFX Limited (provision of foreign currency transaction services). \n \n \n \n \n \n \n \n Asset and \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Personal \n \n \n Edgewater \n \n \n MFX \n \n \n Investing \n \n \n \n \n \n \n \n For the year ended 31 December 2024 \n \n \n Finance \n \n \n Associates \n \n \n Limited \n \n \n Activities \n \n \n Total \n \n \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n \n \n Interest revenue calculated using the effective interest method \n \n \n 55,930 \n \n \n - \n \n \n - \n \n \n - \n \n \n 55,930 \n \n \n \n \n Interest expense \n \n \n (23,044) \n \n \n - \n \n \n - \n \n \n (95) \n \n \n (23,139) \n \n \n \n \n Net interest income \n \n \n 32,886 \n \n \n - \n \n \n - \n \n \n (95) \n \n \n 32,791 \n \n \n \n \n Components of Net Trading Income \n \n \n (6,341) \n \n \n 2,048 \n \n \n 1,035 \n \n \n - \n \n \n (3,258) \n \n \n \n \n Net trading income \n \n \n 26,545 \n \n \n 2,048 \n \n \n 1,035 \n \n \n (95) \n \n \n 29,533 \n \n \n \n \n Components of Operating Income \n \n \n 4,818 \n \n \n 11 \n \n \n 5 \n \n \n 35 \n \n \n 4,869 \n \n \n \n \n Operating Income \n \n \n 31,363 \n \n \n 2,059 \n \n \n 1,040 \n \n \n (60) \n \n \n 34,402 \n \n \n \n \n Depreciation \n \n \n (715) \n \n \n (23) \n \n \n (1) \n \n \n (210) \n \n \n (949) \n \n \n \n \n Amortisation and impairment of intangibles \n \n \n (256) \n \n \n (78) \n \n \n (4) \n \n \n (2) \n \n \n (340) \n \n \n \n \n Share of profit of equity accounted investees, net of tax \n \n \n 119 \n \n \n - \n \n \n - \n \n \n - \n \n \n 119 \n \n \n \n \n All other expenses \n \n \n (20,586) \n \n \n (1,570) \n \n \n (1,020) \n \n \n (124) \n \n \n (23,300) \n \n \n \n \n Profit / (loss) before tax payable \n \n \n 9,925 \n \n \n 388 \n \n \n 15 \n \n \n (396) \n \n \n 9,932 \n \n \n \n \n Capital expenditure \n \n \n 401 \n \n \n 1 \n \n \n - \n \n \n 1,199 \n \n \n 1,601 \n \n \n \n \n Total assets \n \n \n 446,771 \n \n \n 1,614 \n \n \n 310 \n \n \n 49,095 \n \n \n 497,790 \n \n \n \n \n Total liabilities \n \n \n 428,540 \n \n \n 377 \n \n \n 9 \n \n \n 31,551 \n \n \n 460,477 \n \n \n \n \n   \n \n \n \n \n \n \n \n Asset and \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Personal \n \n \n Edgewater \n \n \n MFX \n \n \n Investing \n \n \n \n \n \n \n \n For the year ended 31 December 2023 \n \n \n Finance \n \n \n Associates \n \n \n Limited \n \n \n Activities \n \n \n Total \n \n \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n \n \n Interest revenue calculated using the effective interest method \n \n \n 45,356 \n \n \n - \n \n \n - \n \n \n - \n \n \n 45,356 \n \n \n \n \n Other interest income \n \n \n 1,535 \n \n \n - \n \n \n - \n \n \n - \n \n \n 1,535 \n \n \n \n \n Interest expense \n \n \n (14,538) \n \n \n - \n \n \n - \n \n \n 8 \n \n \n (14,530) \n \n \n \n \n Net interest income \n \n \n 32,353 \n \n \n - \n \n \n - \n \n \n 8 \n \n \n 32,361 \n \n \n \n \n Components of Net Trading Income \n \n \n (6,410) \n \n \n 2,032 \n \n \n 1,048 \n \n \n - \n \n \n (3,330) \n \n \n \n \n Net trading income \n \n \n 25,943 \n \n \n 2,032 \n \n \n 1,048 \n \n \n 8 \n \n \n 29,031 \n \n \n \n \n Components of Operating Income \n \n \n 2,450 \n \n \n 2 \n \n \n - \n \n \n - \n \n \n 2,452 \n \n \n \n \n Operating Income \n \n \n 28,393 \n \n \n 2,034 \n \n \n 1,048 \n \n \n 8 \n \n \n 31,483 \n \n \n \n \n Depreciation \n \n \n (739) \n \n \n (22) \n \n \n (1) \n \n \n (63) \n \n \n (825) \n \n \n \n \n Amortisation and impairment of intangibles \n \n \n (545) \n \n \n (76) \n \n \n (5) \n \n \n (57) \n \n \n (683) \n \n \n \n \n Share of profit of equity accounted investees, net of tax \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n All other expenses \n \n \n (20,294) \n \n \n (1,972) \n \n \n (364) \n \n \n (302) \n \n \n (22,932) \n \n \n \n \n Profit / (loss) before tax payable \n \n \n 6,815 \n \n \n (36) \n \n \n 678 \n \n \n (414) \n \n \n 7,043 \n \n \n \n \n Capital expenditure \n \n \n 2,627 \n \n \n 6 \n \n \n - \n \n \n 895 \n \n \n 3,528 \n \n \n \n \n Total assets \n \n \n 438,916 \n \n \n 1,578 \n \n \n 267 \n \n \n 39,944 \n \n \n 480,705 \n \n \n \n \n Total liabilities \n \n \n 418,794 \n \n \n 279 \n \n \n 10 \n \n \n 25,638 \n \n \n 444,721 \n \n \n \n \n All revenues are earned from the entity's one geographic segment. All non-current assets are located in the entity's one geographic segment. \n 9. Net interest income \n \n \n \n \n \n \n \n 2024 \n \n \n 2023 \n \n \n \n \n \n \n \n £000 \n \n \n £000 \n \n \n \n \n Interest income \n \n \n \n \n \n \n \n \n \n \n Loans and advances to customers \n \n \n 55,930 \n \n \n 45,356 \n \n \n \n \n Total interest income calculated using the effective interest method \n \n \n 55,930 \n \n \n 45,356 \n \n \n \n \n Operating lease income \n \n \n - \n \n \n 1,535 \n \n \n \n \n Total interest income \n \n \n 55,930 \n \n \n 46,891 \n \n \n \n \n Interest expense \n \n \n   \n \n \n \n \n \n \n \n Deposits from customers \n \n \n (20,184) \n \n \n (12,072) \n \n \n \n \n Loan note interest \n \n \n (2,823) \n \n \n (2,361) \n \n \n \n \n Lease liability \n \n \n (132) \n \n \n (93) \n \n \n \n \n Contingent consideration: interest expense \n \n \n - \n \n \n (4) \n \n \n \n \n Total interest expense \n \n \n (23,139) \n \n \n (14,530) \n \n \n \n \n Net interest income \n \n \n 32,791 \n \n \n 32,361 \n \n \n \n \n 10. Net fee and commission income \n In the following table, fee and commission income from contracts with customers in the scope of IFRS 15 - Revenue from Contracts with Customers is disaggregated by major type of services. The table includes a reconciliation of the disaggregated fee and commission income with the Group's reportable segments. See note 45D regarding revenue recognition. \n \n \n \n \n \n \n \n 2024 \n \n \n 2023 \n \n \n \n \n \n \n \n £000 \n \n \n £000 \n \n \n \n \n Major service lines \n \n \n   \n \n \n \n \n \n \n \n Independent financial advice income \n \n \n 2,048 \n \n \n 2,032 \n \n \n \n \n Foreign exchange trading income \n \n \n 1,035 \n \n \n 1,049 \n \n \n \n \n Asset and personal finance: Brokerage services income \n \n \n 267 \n \n \n 421 \n \n \n \n \n Debt collection \n \n \n 573 \n \n \n 495 \n \n \n \n \n Fee and commission income \n \n \n 3,923 \n \n \n 3,997 \n \n \n \n \n Fee and commission expense \n \n \n (7,181) \n \n \n (7,327) \n \n \n \n \n Net fee and commission income \n \n \n (3,258) \n \n \n (3,330) \n \n \n \n \n Fee and commission expense relates to commission paid to Brokerages which introduce new business to the Bank. \n 11. Personnel expenses \n \n \n \n \n \n \n \n Group \n \n \n Company \n \n \n \n \n \n \n \n 2024 \n \n \n 2023 \n \n \n 2024 \n \n \n 2023 \n \n \n \n \n \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n £000 \n \n \n \n \n Staff gross salaries \n \n \n (9,309) \n \n \n (9,060) \n \n \n - \n \n \n - \n \n \n \n \n Executive Directors' remuneration \n \n \n (615) \n \n \n (569) \n \n \n - \n \n \n - \n \n \n \n \n Non-executive Directors' fees \n \n \n (244) \n \n \n (259) \n \n \n (40) \n \n \n (62) \n \n \n \n \n Executive Directors' pensions \n \n \n (49) \n \n \n (45) \n \n \n - \n \n \n - \n \n \n \n \n Executive Directors' performance related pay \n \n \n (131) \n \n \n (99) \n \n \n - \n \n \n - \n \n \n \n \n Staff pension costs \n \n \n (545) \n \n \n (537) \n \n \n - \n \n \n - \n \n \n \n \n National insurance and payroll taxes \n \n \n (1,050) \n \n \n (1,134) \n \n \n - \n \n \n - \n \n \n \n \n Staff training and recruitment costs \n \n \n (300) \n \n \n (354) \n \n \n - \n \n \n - \n \n \n \n \n Equity Settled Restricted Stock Units - key management personnel \n \n \n (206) \n \n \n (67) \n \n \n - \n \n \n - \n \n \n \n \n Equity Settled Restricted Stock Units - employees \n \n \n (46) \n \n \n (46) \n \n \n - \n \n \n - \n \n \n \n \n \n \n \n (12,495) \n \n \n (12,170) \n \n \n (40) \n \n \n (62) \n \n \n \n \n The Company's personnel expenses consist exclusively of Directors remuneration and fees for services rendered to the Company. \n 12. Other expenses \n \n \n \n \n \n \n \n 2024 \n \n \n 2023 \n \n \n \n \n \n \n \n £000 \n \n \n £000 \n \n \n \n \n Professional and legal fees \n \n \n (2,478) \n \n \n (1,586) \n \n \n \n \n Mar...

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