REG - Manx Financial Group - Operational Update

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RNS Number : 2875H  Manx Financial Group PLC  13 November 2025

For Immediate Release

Manx Financial Group Plc

(The "Group")

Operational Update

Manx Financial Group (AIM: MFX), the holding company providing a wide range of
diversified financial services to the Isle of Man and the United Kingdom, will
now provide an operational update each quarter, starting with the period from
1 July 2025 to 30 September 2025.

Douglas Grant, Group CEO, commented:

"As part our initiatives to increase investor communications, I am pleased to
release the first of our quarterly operational updates to keep shareholders
and prospective shareholders up to date with highlights within the Group's
operations. This quarter, we focus on Conister Bank and Payment Assist and
succeeding updates will highlight our other subsidiaries."

Highlights

·      Conister Bank's net loan book grew by 3.9% over the quarter, with
deposits increasing by 3.7% in the same period. The net loan book has now
increased by 9.5% year-to-date, with deposits increasing by just 4.0% over the
same period;

·      Conister Bank entered an exclusive partnership with Fiinu plc to
provide seamless overdrafts for the UK market and is progressing as scheduled;

·      FCA's initial compensation scheme to address the industry's
historic discretionary commission arrangements has been announced with the
consultation period extended;

·      Payment Assist Limited's buy-now-pay-later products continue to
perform well with new partners and international expansion;

·      Our other lending subsidiaries performed well with total lending
up 10% quarter-on-quarter;

·      Additional strategic investment on the Group's collection's
capabilities; and

·      New Group website went live in September.

Overview

I expect UK interest rates to remain higher for longer, with inflation
remaining stubbornly above the Bank of England's target of 2%. This, along
with the well-signposted tax rises which are anticipated to be announced in
the forthcoming Budget, will further depress disposable income for both
consumers and businesses alike. This economic environment suits our existing
short-term lending products which, along with our access to retail deposits
through our two banking licences, positions the Group well to deliver organic
growth.

In terms of shareholder involvement, we launched our new Group website in
September, which we believe to be a considerable improvement on the previous.
In addition, our executive management has increased the number of investor
presentations, both in-person and virtually, recordings of which are available
on the website. We notify these events via the LSE Reach service, and we look
forward to continuing to engage with investors in future.

Conister Bank

Our net loan book, being gross loans net of provisions, has now increased by
9.5% year-to-date. This, together with a smaller increase in deposits, has
improved our loan-to-deposit ratio, a key operational efficiency metric, by 5%
to 97%. The driver of this improvement has been increased demand for our
lending products, both on the Isle of Man and in the UK.

The most significant operational activity for the quarter is the partnership
with Fiinu plc  offering our customers a flexible short-term overdraft
opportunity with no requirement to switch bank. This represents a key
differentiator from our sector peers.

Notably, Isle of Man lending regularly exceeds £5 million per month.

On a less positive note, the Financial Conduct Authority's current
interpretation of the Supreme Court's decision with regards to discretionary
commission arrangements in relation to motor vehicle sales is more onerous
than many lenders, including ourselves, expected. The Financial Conduct
Authority announced 5 November 2025 that, after receiving industry comment,
they are extending their consultation by a further five weeks. We are
currently re-analysing our historic motor book, and Conister Bank will make
any appropriate increase in provisions should this become necessary.

During the pandemic, Conister Bank Limited acted as a funder within the UK
Government's Bounce Back Loan Scheme. These loans have a 100% UK Government
guarantee, and we are now discussing with the British Business Bank, the agent
of the UK Government, what level of support we will have for this portfolio.
These discussions are ongoing and I expect to have greater clarity on this,
together with the discretionary commission issue for the next quarterly
review.

Payment Assist

Our buy-now-pay-later subsidiary, Payment Assist Limited, secured five new
partner agreements which will drive growth in 2026 and beyond. I was also
delighted to announce that Neil Jeffery will continue in his exclusive
consultancy role at the Group, where we will be able to draw on his experience
and contacts in developing Payment Assist's UK and overseas growth
aspirations. In particular, Neil is helping our Irish consumer credit licence
application, which is progressing as planned, with our initial meeting with
the Central Bank of Ireland scheduled for later this month.

General

Our other lending subsidiaries continue to perform well in their discreet
markets and our subsidiaries in the wealth management and FX sectors continue
to perform in line with expectations.

We have increased our investment in our debt collection capability throughout
the Group, both in terms of technology and personnel, and we fully expect this
activity within our loan portfolio management to contribute positively to our
financial performance by late 2026.

Douglas Grant, Group CEO
13 November 2025

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
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 Manx Financial Group PLC  Beaumont Cornish Limited   Tavistock Communications Limited           Greentarget Limited
 Denham Eke                Roland Cornish/            Simon Hudson/                              Jamie Brownlee

                           James Biddle               Adam Baynes
 Tel: +44 (0) 1624 694694  Tel: +44 (0) 20 7628 3396  Tel: +44 207 920 3150 mfg@tavistock.co.uk  Tel: +44 (0) 20 3307 5726

 

Nominated Adviser

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.

 

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