Distribution Finance flags higher full-year profit
By Josh White
Date: Friday 26 Jun 2026
(Sharecast News) - Distribution Finance Capital said on Friday that full-year profit was expected to be materially ahead of market expectations, after stronger-than-expected lending growth and low impairments in the first half.
The AIM-traded specialist bank said new loan origination was expected to reach about £1bn for the six months ended 30 June, up 21% on the prior year, while its aggregate loan book was set to close the period above £915m, more than 25% higher year-on-year.
Its asset finance product also continued to gain traction, particularly in static caravans and holiday parks, with the loan book expected to reach almost £40m from £15m at the end of December.
DF Capital said portfolio quality remained "exceptionally strong", with cost of credit risk well within its target of less than 1%.
The group now expects first-half profit before tax of at least £13m, representing an annualised return on required equity of more than 17%, and said the shift towards longer-tenor lending was generating additional near-term benefits.
Chief executive Carl D'Ammassa said the group's multi-product strategy was "now bearing fruit", leaving it well placed to deliver on its FY28 and FY30 targets.
At 1230 BST, shares in Distribution Finance Capital Holdings were up 11.6% at 66.4p.
Reporting by Josh White for Sharecast.com.
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