PCF Bank has announced it will pull out of the UK banking market after failing to raise capital and secure strategic options.
The lender was looking to raise more significant growth capital and pursued other strategic opportunities, but PCF says it “has now determined that significant growth capital will not be available and strategic transactions have not gone ahead.” materialized”.
PCF Bank will not resume lending and will manage its declining loan and savings portfolio positions over time in accordance with their respective terms and conditions while gradually reducing its cost base.
The Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) have been kept informed of the lender’s plans.
Somers Limited, the company’s major shareholder, said it “remains supportive” of the company throughout this process.
PCF Bank chief executive Garry Stran said: “This has been a very difficult strategic decision for the board to make given the implications for the business, colleagues, customers, intermediaries and shareholders. .”
“This is all the more true given the considerable progress made over the past 18 months to address the issues that led to the suspension of trading in the group’s shares in May 2021 and the work undertaken to seek financing from growth or advance other transactional strategies to deliver a growing and sustainable value proposition to all of our stakeholders. The company will now focus on implementing our decision.
On October 5, the bank announced that it remained committed to its objectives of finding new growth capital.
However, he said that “the raising of this capital is not guaranteed, nor is the realization of any of the other strategic options”.
The board also decided to suspend new lending activities.