2 May 2017 – final results
Results for the year ended 31 December 2016 have been releasd. Profit before income tax for the year was £1.5m (2015: £2.3m) on a net interest income of £16.0m (2015: £13.5m). Return on equity was 10% (2015: 17%) and lending grew by 15% (2015: 13%) over the year, rising by £14.7m to £116.1m (2015: £101.4m). Equity increased by 8% to £13.2m (2015: £12.1m). The company has pointed out that almost the entirety of this equity is used to support the regulatory capital base of the Bank. Cash and near-cash of £6.1m (2015: £7.2m) sitting on the balance sheet is solely available for further lending. We believe there is upside ahead and rate the shares as a BUY.