DF Capital loan book jumps 27% to £846m in 2025

DF Capital has reported its strongest financial performance to date, with double-digit growth across lending, revenue and profitability in 2025, as the specialist bank expanded its presence across key sectors and launched new products.

The bank, which provides finance solutions to manufacturers, dealers and distributors across the UK, said its loan book grew 27% to £846 million, up from £666 million the previous year. Growth was driven by activity across its inventory finance, structured finance and asset finance divisions, spanning industries including industrial, marine and specialist automotive.

Revenue rose 19% to £90.9 million, while adjusted profit before tax increased by 26% to £18.1 million, supported by higher net income and continued cost control.

DF Capital also reported a 14% increase in borrower numbers to 1,522 and said it now works with 109 manufacturers across multiple sectors. Total dealer loan facilities reached £1.83 billion.

The results mark the bank’s fourth consecutive year of profitability and reflect continued momentum in its core lending markets.

A key development during the year was the launch of DFRNT, the bank’s digital asset finance platform, introduced following regulatory approval in 2025. Initially focused on motorhome and caravan dealers, the platform has since expanded into additional sectors including industrial and marine, contributing £15 million in lending in its first year.

DF Capital said the new proposition represents a significant opportunity for future growth, targeting a market substantially larger than its traditional inventory finance base.

The bank reiterated its confidence in its medium-term strategy, with targets through to 2028 and longer-term ambitions to 2030, including a loan book exceeding £1.5 billion, a cost-to-income ratio of 45% to 48%, and a return on required equity of around 20%.

It expects to fund this growth through retained earnings rather than external equity, while increasing tangible net assets by between 10% and 15% annually.

“I’m proud of these outstanding results, undoubtedly our best year so far. We have delivered on our financial targets, exceeding expectations in almost all areas; launched new products and services; continued to invest in technology and delivered record-breaking results,” he said.

“We’ve launched our new asset finance product through our ‘DFRNT’ brand, built from the ground up to provide customers with a first-class digital experience. Momentum will build in this new area through 2026 as we tap into annual sales of over £10 billion across our existing manufacturer and dealer base.”

He added that the bank sees significant opportunity ahead as it continues to expand as a multi-product lender while maintaining its focus on specialist markets.

“We have all the tools in our armoury to deliver on our ambitious medium-term objectives through to 2030, building on these exceptional 2025 results. The foundations are all in place and I’m excited for the Group’s future prospects.”

The bank said strong new loan momentum has continued into 2026, with its year-end loan book expected to exceed £900 million as it builds market share in inventory finance and expands further into asset finance.