The PCF lending portfolio doubled in size and hit £219m compared to £146m in September 2017.

The bank said business originations were 75% ahead of last year at £148m (2017: £85m), with 70% of originations being in its prime credit grades.

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It said that its target to hit £350m of PCF lending by September 2020 was on track, and placed the success of its continued growth on the benefits of a banking model and high-level customer service.

“Our increased lending to the prime sector is a strategic decision enabled by the reduced cost of funds and aligned to our risk appetite and our cautious outlook for the UK economy,” said a release.

The bank also reiterated its cautious statement on the UK economy, stating that the prime lending markets for consumer motor finance and business asset finance were competitive arenas and had resulted in an anticipated reduction in net interest margin.

It said competing in larger prime markets would improve future profitability through lower levels of loan delinquency later and the increased scale of its lending book in proportion to its fixed costs would improve its operational gearing.

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The bank said that continued investment in technology was key to its operations, as was participation in the Bank of England’s Term Funding Scheme, which diversified its funding base and helped to reduce funding costs.

PCF also mentioned its previously announced acquisition of Azule, a provider of specialist funding and leasing services to the broadcast and media industry, as a source of potential revenue growth,  with an origination capability of over £50m per annum. The acquisition is subject to FCA approval for change of control.

Scott Maybury, chief executive of PCF, said: “A diversified banking model is proving a great strength and our first full year as a bank has been extremely encouraging. We have made excellent progress against ambitious targets and our focus on organic growth through existing lending markets has now been supplemented with an earnings enhancing acquisition.

“We look forward to reporting our Final Results on 5 December 2018.”