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DF Capital’s arrears return to pre-pandemic levels

DF Capital, the personal savings and commercial finance provider, has seen arrears fall below pre-pandemic levels, according to a full-year results statement that claims it has “no pandemic related legacy".

The report revealed that as at 31 December 2020, arrears represented 0.2% of the loan book, and that loan book growth was “constrained” during the year, rising 36% by 31 December 2020 to £113m, from a low point of £83m in October last year.


DF Capital said however that it remains cautious. The results explained that with ongoing economic uncertainty and a number of government-backed support schemes due to come to an end over the coming months, its arrears performances could be impacted.





31 December 2020 

31 December 2019 


 Arrears (£’000) 


1-30 days past due 



31-60 days past due 



61-90 days past due 



91 days + past due  






Total % of loan book 




DF Capital says it provided “modest” levels of forbearance to dealers during the first lockdown, and there have been “minimal” forbearance requests since the first lockdown ended. Around 35% of DF Capital’s customers utilised its initial forbearance offerings.


Impairment charges

Impairment charges and provisions for the period reached £1.3m (2019: £1.6m). According to the results, the year-on-year reduction largely reflects the reducing size of the loan book through the year with a related fall in loan provisioning.


Government support

DF Capital received £89,000 in support from the government’s job retention scheme. During the first lockdown, a “small” number of workers were furloughed, and DF Capital says it was unable to protect those roles permanently.


Carl D’Ammassa, chief executive of DF Capital, said: “The impact of the global pandemic made 2020 a challenging year for the group. However, we start 2021 on more solid foundations. We have no pandemic related legacy and have protected our lending franchise throughout the year. In September, we received full authorisation as a bank, which will be transformational for the group’s profitability.


“The group is currently performing in line with the board’s expectations. Whilst the economic environment remains uncertain, the strong start in Q1 2021 gives us early confidence in achieving run-rate profitability during Q4 2021.”

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