Distribution Finance Capital Holdings plc (LSE:DFCH) has reported a 22% year-on-year increase in new loan originations to £561 million during the third quarter of 2026, alongside a 22% expansion in its loan book to £929 million.
The specialist UK bank said lending activity increased during the period, supported by growth in its existing finance operations and continued expansion of its asset finance business.
DF Capital reported that portfolio quality remained stable, with arrears at low levels and exposure to non-performing loans remaining controlled.
The group also provided an update on lending exposures associated with two insolvent dealers. It expects to sell or redistribute approximately £27 million of related assets without recording additional credit losses.
According to the company, the anticipated recovery of these assets forms part of its ongoing management of credit exposures within its lending portfolio.
In its asset finance division, DF Capital reported that the combined consumer and business lending book reached approximately £78 million by the end of the third quarter.
This represents nearly twice the level recorded at the midpoint of 2026, reflecting an increase in lending activity across the division.
The bank has also expanded its distribution network, with more than 290 dealers and over 390 retail locations now originating loans through its financing arrangements.
Alongside the increase in participating dealers and locations, DF Capital has introduced an enhanced dealer finance application process and launched a direct-to-consumer lending portal.
The new digital services provide additional channels through which customers can access the bank’s finance products, complementing its existing dealer-based lending operations.
DF Capital said these developments are intended to support further expansion of its asset finance activities and increase the number of customers able to access its lending services.
The group’s broader lending business continues to provide inventory and structured finance solutions to manufacturers, distributors and dealers across the UK.
Its operations are supported by a deposit-taking business offering savings products, which forms part of the bank’s funding arrangements.
Following the third-quarter performance, DF Capital confirmed that it remains on track to meet market expectations for the full year.
The company has not announced any changes to its full-year financial guidance in connection with the trading update.
About DF Capital
Distribution Finance Capital Holdings plc (LSE:DFCH), trading as DF Capital, is a UK specialist bank providing inventory finance, structured lending and asset finance products to manufacturers, dealers, distributors, businesses and consumers.
The AIM-listed group operates through dealer-based lending arrangements and digital financing platforms, including a direct-to-consumer portal. Its lending activities are supported by a savings business offering deposit products to customers in the UK.
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