PCF Bank has decided to withdraw from the UK banking market after it failed to raise growth capital.
The bank said it will not be resuming its lending operations and will be managing down its loan and portfolio positions, whilst reducing its cost base.
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At some point in future, the bank plans to sell part or all of that loan portfolio.
PCF Bank’s decision comes after the board concluded a review of its operational structure and strategic option and determined that growth capital will not be forthcoming and strategic transactions have failed to materialise.
The bank’s board will continue to explore strategic transactions with third parties, PCF Bank said.
The lender has also proposed to cancel the AIM listing of its ordinary shares to reduce costs for the company, which is subject to shareholder approval.
PCF Bank chief executive Garry Stran said: “This has been a very difficult strategic decision for the board to make given the consequences for the business, colleagues, customers, intermediaries and shareholders.
“This is particularly so given the considerable progress made over the last 18 months to remediate the issues that gave rise to the suspension in trading in the group’s shares in May 2021 and the work undertaken in seeking to raise growth funding or progress other transactional strategies to deliver a growing and sustainable value proposition for all our stakeholders.”
Founded in 1994, PCF Bank was authorised as a lender in 2016. It offers banking services to some 20,000 retail and business customers.
