**Summary**
Distribution Finance Capital Holdings plc (DF Capital) reported strong financial results for the year ended December 31, 2025, with significant growth and strategic momentum. Key highlights include
**Financial Performance** DF Capital exceeded market expectations with a 27% increase in new loans advanced to customers, reaching £1.83 billion. The loan book grew by 27% to £846 million, and the deposit book increased by 29% to £841 million. Gross revenue rose by 19% to £90.9 million, and net income increased by 23% to £56.0 million. Adjusted profit before tax grew by 26% to £18.1 million.
**Operational Highlights** The company celebrated its fifth year as a bank and its fourth year of profitability. It launched a new asset finance product, DFRNT, which contributed £15 million to the loan book. The number of borrowers increased by 14% to 1,522, and manufacturer partners grew to 109. DF Capital also relocated to a new, expanded Manchester headquarters to support future growth.
**Customer Satisfaction** The annual lending customer satisfaction survey showed a net promoter score of +59, up 21 points from the previous year, reflecting strong customer relationships and service quality.
**Medium-Term Targets** DF Capital reaffirmed its medium-term targets, including a loan book exceeding £1.5 billion by 2030, a cost-to-income ratio of 45%-48%, and a return on required equity of around 20%. The company expects to fund this growth through organic capital generation and retained earnings, avoiding the need for dilutive capital raises.
**Dividend Policy** Subject to regulatory approval, DF Capital plans to initiate its first dividend following the year ending December 31, 2028.
**Leadership and Culture** The company maintains a strong focus on culture and employee engagement, achieving excellent ratings in the Sunday Times Best Places to Work survey.
Overall, DF Capital demonstrated robust financial and operational performance, strategic product expansion, and a commitment to long-term growth and shareholder value.
| Metric | 2024 (£m) | 2025 (£m) | Change |
|---|---|---|---|
| Deposit book | 650 | 841 | 29% |
| Loan book | 666 | 846 | 27% | tr>
| New loans advanced to customers | 1,440 | 1,828 | 27% |
| Gross revenue | 76.7 | 90.9 | 19% |
| Net income | 45.5 | 56.0 | 23% |
| Net interest margin (%) | 7.9 | 8.0 | +10bps |
| Adjusted cost of risk (bps) | 75 | 59 | -16bps |
| Cost to income ratio (%) | 59 | 57 | -2pts |
| Adjusted profit before tax (£m) | 14.4 | 18.1 | 26% |
| CET1 ratio (%) | 21.6 | 18.0 | -3.6pts |
| Adjusted earnings per share (pence) | 5.9 | 8.3 | +2.4p |
| Adjusted return on tangible equity (%) | 9.9 | 11.9 | 20% |
| Tangible net asset value per share (pence) | 63.8 | 75.9 | +12.1p |
Debt Comparison
| Metric | 2024 (£m) | 2025 (£m) | Change |
|---|---|---|---|
| Subordinated liabilities | 10.2 | 15.3 | 50% |
| Total regulatory capital | 109.0 | 127.7 | 17% |