Distribution Finance Capital Holdings (LSE:DFCH) reported solid trading for the first quarter, with new loan originations climbing roughly 23% year on year to a record £469 million. The group’s loan book increased about 26% to £895 million, supported in part by growth from its recently introduced asset finance offering. Retail deposits also passed the £1 billion milestone for the first time since the bank received its banking licence in 2020, highlighting continued customer trust and a strong funding base.
Credit performance remained stable, with total arrears and loans in legal recovery falling to 0.6% of the loan book. Non-performing loans declined compared with the end of 2025, both in the number of cases and the total balance outstanding. Management said that despite ongoing macroeconomic and geopolitical uncertainties, it has not observed any immediate signs of systemic stress or supply chain disruption among its clients. The bank believes it remains well positioned to pursue its growth objectives for 2028 and 2030 while maintaining a disciplined approach to credit risk.
The investment outlook is primarily supported by improving financial fundamentals, including a recovery in revenue and profitability alongside relatively modest leverage. The shares also trade on a very low price-to-earnings valuation. These positives are partly offset by weaker technical indicators—such as a bearish trend with a negative MACD and the share price sitting below key moving averages—as well as a history of volatility in cash flow.
More about Distribution Finance Capital Holdings Plc
Distribution Finance Capital Holdings plc (DF Capital) is a specialist UK bank and niche lender focused on providing flexible financing solutions that support the sales and expansion of manufacturers, dealers, and distributors in underserved retail sectors. Its lending operations are funded through a range of savings products delivered via a straightforward digital platform. The group is listed on AIM under the ticker DFCH.
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