Interim Results to 30 June 2025

For the period ended	Note	Unaudited 30 June 2025 £million	Unaudited 30 June 2024 £million	Audited 31 December 2024 £million
Income statement
Interest income and similar income	3	187.8	178.6	366.0
Interest expense and similar charges	3	(88.8)	(90.4)	(181.1)
Net interest income	3	99.0	88.2	184.9
Fee and commission income		7.4	8.0	19.2
Fee and commission expense		(0.1)	(0.1)	(0.2)
Net fee and commission income	3	7.3	7.9	19.0
Operating income	3	106.3	96.1	203.9
Net impairment charge on loans and advances to customers	10	(30.9)	(28.2)	(61.9)
Other gains/(losses)		-	0.1	(0.3)
Fair value and other gains on financial instruments	4	0.1	0.7	1.2
Operating expenses		(52.2)	(51.6)	(103.8)
Profit before income tax before exceptional items		23.3	17.1	39.1
Exceptional items	5	(1.0)	-	(9.9)
Profit before income tax		22.3	17.1	29.2
Income tax expense	6	(5.6)	(4.3)	(9.5)
Profit for the period		16.7	12.8	19.7

Other comprehensive income
Items that will be reclassified to the income statement
Cash flow hedge reserve movements		(1.3)	(0.8)	(0.8)
Reclassification to the income statement		1.4	1.0	1.3
Taxation		-	(0.1)	(0.2)
Other comprehensive income for the period, net of income tax		0.1	0.1	0.3
Total comprehensive income for the period		16.8	12.9	20.0

Profit attributable to the equity holders of the Company		16.7	12.8	19.7
Total comprehensive income attributable to the equity holders of the Company		16.8	12.9	20.0

Earnings per share for profit attributable to the equity holders of the Company during the period (pence per share)
Basic earnings per ordinary share	7	87.6	67.2	103.4
Diluted earnings per ordinary share	7	84.3	65.1	101.4

As at the period ended	Note	Unaudited 30 June 2025 £million	Unaudited 30 June 2024 £million	Audited 31 December 2024 £million
ASSETS
Cash and Bank of England reserve account		385.9	412.2	445.0
Loans and advances to banks		28.8	21.7	24.0
Loans and advances to customers	9	3,828.8	3,421.6	3,608.5
Fair value adjustment for portfolio hedged risk		6.3	(10.7)	(6.8)
Derivative financial instruments		6.6	18.3	14.3
Property, plant and equipment		7.6	10.7	9.9
Right-of-use assets		1.7	1.9	1.6
Intangible assets		4.7	5.3	5.0
Current tax assets		1.9	2.5	0.2
Deferred tax assets		3.1	4.0	3.3
Other assets		12.5	11.4	11.7
Total assets		4,287.9	3,898.9	4,116.7
LIABILITIES AND EQUITY
Liabilities
Due to banks	11	261.0	359.1	365.8
Deposits from customers	12	3,510.1	3,042.7	3,244.9
Fair value adjustment for portfolio hedged risk		4.7	(7.4)	(3.4)
Derivative financial instruments		2.6	14.4	10.0
Lease liabilities		1.8	2.2	1.8
Other liabilities		31.7	34.9	32.5
Provisions for liabilities and charges	13	8.6	4.4	11.3
Subordinated liabilities	14	93.3	93.1	93.3
Total liabilities		3,913.8	3,543.4	3,756.2
Equity attributable to owners of the parent
Share capital		7.6	7.6	7.6
Share premium		84.0	84.0	84.0
Other reserves		(1.8)	(1.4)	(2.2)
Retained earnings		284.3	265.3	271.1
Total equity		374.1	355.5	360.5
Total liabilities and equity		4,287.9	3,898.9	4,116.7

For the period ended	Note	Unaudited 30 June 2025 £million	Unaudited 30 June 2024 £million	Audited 31 December 2024 £million
Cash flows from operating activities
Profit for the year		16.7	12.8	19.7
Adjustments for:
Income tax expense	6	5.6	4.3	9.5
Depreciation of property, plant and equipment		0.4	0.5	1.0
Depreciation of right-of-use assets		0.5	0.5	1.0
Amortisation of intangible assets		0.6	0.7	1.4
Impairment charge on loans and advances to customers	10	30.9	28.2	61.9
Share-based compensation		1.2	1.4	2.3
Provision for liabilities and charges	13	1.3	0.5	9.8
Other non-cash items included in profit before tax		0.1	(0.7)	(0.6)
Cash flows from operating profits before changes in operating assets and liabilities		57.3	48.2	106.0
Changes in operating assets and liabilities:
- loans and advances to customers		(251.2)	(134.4)	(354.8)
- loans and advances to banks and balances at central banks		(1.9)	5.0	5.0
- other assets		(0.8)	1.4	1.4
- deposits from customers		265.2	170.9	373.1
- provisions for liabilities and charges		(4.0)	(2.1)	(4.7)
- other liabilities		(7.5)	(1.7)	(5.5)
Income tax paid		(7.1)	(6.3)	(8.8)
Net cash inflow from operating activities		50.0	81.0	111.7
Cash flows from investing activities
Purchase of property, plant and equipment and intangible assets		(0.4)	(0.5)	(1.0)
Sale of property, plant and equipment and intangible assets		1.9	-	-
Net cash inflow/(outflow) from investing activities		1.5	(0.5)	(1.0)
Cash flows from financing activities
Drawdown of amounts due to banks		2.3	2.1	0.8
Drawdown of Index Long-Term Repos		250.0	5.0	125.0
Repayment of Index Long-Term Repos		(125.0)	-	-
Repayment of Term Funding Scheme with additional incentives for SMEs		(230.0)	(50.0)	(160.0)
Purchase of own shares		(0.2)	(0.4)	(1.4)
Issue of shares		-	0.2	0.2
Dividends paid		(4.2)	(3.1)	(5.2)
Repayment of lease liabilities		(0.6)	(0.7)	(1.4)
Net cash outflow from financing activities		(107.7)	(46.9)	(42.0)
Net (decrease)/increase in cash and cash equivalents		(56.2)	33.6	68.7
Cash and cash equivalents at 1 January		469.0	400.3	400.3
Cash and cash equivalents at end of period	17	412.8	433.9	469.0

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•	Adjusted¹ profit before tax increased 36.3% to £23.3 million (30 June 2024: £17.1 million)
•	Loan book growth of 6.1% to £3.8 billion (31 December 2024: £3.6 billion)
•	Statutory profit before tax increased by 30.4% to £22.3 million (30 June 2024: £17.1 million)
•	Net Interest Margin ('NIM') improved by 0.1pp to 5.4% (30 June 2024: 5.3%)
•	Adjusted¹ cost income ratio improved by 460 bps to 49.1% (30 June 2024: 53.7%)
•	Adjusted¹ return on average equity ('ROAE') increased to 9.6% (30 June 2024: 7.3%)
•	Tangible book value per share increased 3.9% to £19.37 per share (31 December 2024: £18.64)
•	Increased interim dividend of 11.8 pence per share (30 June 2024: 11.3 pence), in line with progressive dividend policy

	Six months to 30 June 2025	Six months to 30 June 2024	Change
Total statutory profit before tax	£22.3m	£17.1m	30.4%
Adjusted¹ profit before tax	£23.3m	£17.1m	36.3%
Adjusted¹ profit before tax and pre impairments	£54.2m	£45.2m	19.9%
Basic earnings per share	87.6 pence	67.2 pence	30.4%
Interim dividend per share	11.8 pence	11.3 pence	4.4%

Adjusted¹ return on average equity	9.6%	7.3%	2.3pp
Total return on average equity	9.2%	7.3%	1.9pp
Net interest margin	5.4%	5.3%	0.1pp
Cost of risk	1.7%	1.7%	-
Adjusted¹ cost income ratio	49.1%	53.7%	(4.6)pp
Statutory cost income ratio	50.0%	53.7%	(3.7)pp
	30 June 2025	31 December 2024	Change
Net lending balances	£3,828.8m	£3,608.5m	6.1%
Customer deposits	£3,510.1m	£3,244.9m	8.2%
Tangible book value per share	£19.37	£18.64	3.9%
Common Equity Tier 1 ('CET 1') ratio	12.6%	12.3%	0.3pp
Total capital ratio	14.8%	14.6%	0.2pp

•	Strategic decision to stop new lending in Vehicle Finance.
•	On track to make annualised cost savings of £8 million² by the end of the year through our cost optimisation programme Project Fusion.
•	Customers continue to increase use of digital platforms, with over 98% of Savings customers registered with online banking and our AppToPay registrations reaching 250,000 customers in just 6 months.
•	Retail Finance works with over 1,000 partners and in the first half of the year supported a £1.4 billion net lending balance (30 June 2024: £1.3 billion).
•	For the second time in three years, our Commercial Finance team were the winners of the Asset-Based Lender of the Year at the Real Deals Private Equity Awards 2025.
•	In Real Estate Finance, we have leveraged our existing client base showing the power of our robust relationship model, with new lending to existing clients in the first half of 2025 at 59% of new business.

•	Awarded Exceptional Service badge by Feefo for excellence in key customer review areas; customer satisfaction maintains its high standard, as measured by Feefo, 4.6 stars (30 June 2024: 4.7 stars).
•	Great Place to Work®, once again ranked us as one of the UK's Best Workplaces™, in the large organisations category. Further accolades have also included being ranked for Best Workplace for Development™ and Best Workplace for Women™.

Medium-term targets	30 June 2025 Actual	Target
Net lending balance	£3.8bn	£4bn
Net interest margin	5.4%	>5.5%
Adjusted¹ cost income ratio	49.1%	44-46%
Adjusted¹ return on average equity	9.6%	14% - 16%
CET 1 ratio	12.6%	>12.0%

1	Adjusted metrics exclude exceptional items of £1.0 million (30 June 2024: £nil, 31 December 2024: £9.9 million). Details can be found in Note 5 to the Financial Statements
2	£5.0 million cost savings relative to operating expenses for the 12 months ended December 2021. The additional £3.0 million savings (of the £8.0 million) will be relative to annualised operating expenses for the six months ending 30 June 2024.

	Target	30 June 2025	30 June 2024	31 December 2024
Medium-term targets
Financial KPIs
Loans and advances to customers (£ billion)	4.0	3.8	3.4	3.6
Why we measure this: Shows the growth in the Group's lending balances, which generate income
Net interest margin (%)	>5.5	5.4	5.3	5.4
Why we measure this: Shows the interest margin earned on the Group's lending balances, net of funding costs
Adjusted¹ cost income ratio (%)	44-46	49.1	53.7	50.9
Why we measure this: Measures how efficiently the Group utilises its cost base, excluding exceptional items1 to produce income
Adjusted¹ return on average equity (%)	14-16	9.6	7.3	8.0
Why we measure this: Measures the Group's ability to generate profit from the equity available to it, excluding exceptional items1
Common Equity Tier 1 ('CET 1') ratio (%)	>12.0	12.6	12.7	12.3
Why we measure this: The CET 1 ratio demonstrates the Group's capital strength
Other KPIs
Financial KPIs
Statutory cost income ratio		50.0	53.7	55.8
Why we measure this: Measures how efficiently the Group utilises its cost base
Total return on average equity (%)		9.2	7.3	5.5
Why we measure this: Measures the Group's ability to generate profit from the equity available to it
Cost of risk (%)		1.7	1.7	1.8
Why we measure this: Measures how effectively the Group manages the credit risk of its lending portfolios
Non-Financial KPIs
Customer Feefo ratings (Stars)		4.6	4.7	4.7
Why we measure this: Indicator of customer satisfaction with the Group's products and services (mark out of 5 based on star rating from 879 reviews, (30 June 2024: 1,073 reviews, 31 December 2024: 1,661 reviews))
Further explanation of the financial key performance indicators is discussed in the narrative within the Financial review on pages 8 to 13.

	30 June 2025 £million	30 June 2024 £million	Change %	31 December 2024 £million
Continuing operations
Interest income and similar income	187.8	178.6	5.2	366.0
Interest expense and similar charges	(88.8)	(90.4)	(1.8)	(181.1)
Net interest income	99.0	88.2	12.2	184.9
Fee and commission income	7.4	8.0	(7.5)	19.2
Fee and commission expense	(0.1)	(0.1)	-	(0.2)
Net fee and commission income	7.3	7.9	(7.6)	19.0
Operating income	106.3	96.1	10.6	203.9
Net impairment charge on loans and advances to customers	(30.9)	(28.2)	9.6	(61.9)
Other gains/(losses)	-	0.1	(100.0)	(0.3)
Fair value and other gains on financial instruments	0.1	0.7	(85.7)	1.2
Operating expenses	(52.2)	(51.6)	1.2	(103.8)
Profit before income tax before exceptional items	23.3	17.1	36.3	39.1
Exceptional items	(1.0)	-	n/a	(9.9)
Profit before income tax	22.3	17.1	30.4	29.2
Income tax expense	(5.6)	(4.3)	30.2	(9.5)
Profit for the period	16.7	12.8	30.5	19.7

Basic earnings per share (pence) - Adjusted	91.8	67.2	36.6	150.1
Basic earnings per share (pence) - Total	87.6	67.2	30.4	103.4

	%	%	Percentage point movement	%
Net Interest Margin ('NIM')	5.4	5.3	0.1	5.4
Net revenue margin	5.8	5.8	-	6.0
Cost of funds	4.8	5.4	(0.6)	5.3
Adjusted cost to income ratio	49.1	53.7	(4.6)	50.9
Statutory cost to income ratio	50.0	53.7	(3.7)	55.8
Cost of risk	1.7	1.7	-	1.8
Adjusted return on average equity	9.6	7.3	2.3	8.0
Total return on average equity	9.2	7.3	1.9	5.5
Common Equity Tier 1 ('CET 1') ratio	12.6	12.7	(0.1)	12.3
Total capital ratio	14.8	15.0	(0.2)	14.6

Summarised balance sheet	30 June 2025 £million	30 June 2024 £million	31 December 2024 £million
Assets
Cash and balances at central banks	385.9	412.2	445.0
Loans and advances to banks	28.8	21.7	24.0
Loans and advances to customers	3,828.8	3,421.6	3,608.5
Fair value adjustment for portfolio hedged risk	6.3	(10.7)	(6.8)
Derivative financial instruments	6.6	18.3	14.3
Other assets	31.5	35.8	31.7
	4,287.9	3,898.9	4,116.7
Liabilities
Due to banks	261.0	359.1	365.8
Deposits from customers	3,510.1	3,042.7	3,244.9
Fair value adjustment for portfolio hedged risk	4.7	(7.4)	(3.4)
Derivative financial instruments	2.6	14.4	10.0
Tier 2 subordinated liabilities	93.3	93.1	93.3
Other liabilities	42.1	41.5	45.6
	3,913.8	3,543.4	3,756.2

New business volumes	30 June 2025	30 June 2024	Change %
Consumer Finance
Retail Finance	708.1	645.1	9.8
Vehicle Finance	305.3	248.8	22.7
Business Finance
Real Estate Finance	190.4	135.5	40.5
Commercial Finance	184.5	32.4	469.4
Total	1,388.3	1,061.8	30.7

•	the level of buffers and the capital requirement set by the Prudential Regulation Authority ('PRA');
•	estimated credit losses calculated using IFRS 9 methodology and the applicable transitional rules;
•	new business volumes; and
•	the product mix of new business.

Capital	30 June 2025 £million	30 June 2024 £million	31 December 2024 £million
CET 1 capital, excluding IFRS 9 transitional adjustment	367.1	348.2	351.3
IFRS 9 transitional adjustment	-	-	0.1
CET 1 capital	367.1	348.2	351.4
Tier 2 capital¹	65.6	61.5	64.3
Total capital	432.7	409.7	415.7
Total risk exposure	2,916.8	2,735.3	2,855.7
Capital ratios
CET 1 capital ratio	12.6	12.7	12.3
Total capital ratio	14.8	15.0	14.6
CET 1 capital ratio (excluding IFRS 9 transitional adjustment)	12.6	12.7	12.3
Total capital ratio (excluding IFRS 9 transitional adjustment)	14.8	15.0	14.6
Leverage ratio	9.3	9.9	9.5

•	the Overall Liquidity Adequacy Requirement ('OLAR'), which is the Board's view of the Group's liquidity needs, as set out in the Board approved Internal Liquidity Adequacy Assessment Process ('ILAAP');
•	the Liquidity Coverage Ratio ('LCR'), which is a regulatory measure that assesses net 30-day cash outflows as a proportion of High Quality Liquid Assets ('HQLA');
•	total funding ratio, as defined in the Appendix to the Interim Report; and
•	'HQLAs' are held in the Bank of England Reserve Account and UK Treasury Bills. For LCR purposes, the HQLA excludes UK Treasury Bills that are pledged as collateral against the Group's TFSME drawings with the Bank of England.

Liquid assets	30 June 2025 £million	30 June 2024 £million	31 December 2024 £million
Aaa - Aa3	385.9	412.2	445.0
A1 - A2	26.9	21.7	24.0
Total	412.8	433.9	469.0

Customer deposits	30 June 2025 %	30 June 2024 %	31 December 2024 %
Fixed-term bonds	44	50	47
Notice accounts	2	3	2
ISAs	32	23	26
Access accounts	22	24	25
Total	100	100	100

	30 June 2025 £million	30 June 2024 £million	31 December 2024 £million
Total Capital Requirement	262.5	246.2	257.0
Capital conservation buffer (2.5%)	72.9	68.4	71.4
Countercyclical buffer (2.0%)	58.3	54.7	57.1
Total	393.7	369.3	385.5

•	We provide a market-leading online e-commerce service to retailers, providing unsecured, interest-free and interest-bearing prime lending products to UK customers to facilitate the purchase of a wide range of consumer products, including furniture, jewellery, dental, leisure items and football season tickets. These retailers include a large number of household names.
•	Products are available to purchase in store or online, using our market-leading origination platform, which provides fast decision making, with 90% of applications agreed in an average of six seconds.
•	The customer proposition and the integrated platform support the growth of UK retailers and the real economy.

•	We provide consumer lending products that are secured against the second-hand vehicle being financed.
•	We also provide a vehicle stock funding product, which is secured against dealer forecourt used car stock; sourced from auctions, part exchanges or trade sources.
•	Finance is provided via technology platforms, allowing us to receive applications online from introducers; provide an automated decision; facilitate document production through to pay-out to dealer; and manage in-life loan accounts.

•	We provide non-regulated first charge secured lending to specialist real estate markets, lending to professional landlords to enable them to improve and grow their portfolio and provide development facilities to property developers and SME housebuilders to help build new homes for sale or letting.
•	Due to our specialist relationship-led business model, we offer through the cycle tailored underwriting and cash flow led debt structuring.
•	Finance opportunities are sourced and supported on a relationship basis directly and via introducers and brokers.

	30 June 2025	30 June 2024	31 December 2024
New business (£million)	708.1	645.1	1,289.7
Loans and advances to customers (£million)	1,436.4	1,315.4	1,357.8
Net interest margin (%)	7.0	6.6	6.8
Risk adjusted margin (%)	5.8	6.1	6.0

•	We achieved record new lending in H1 2025 with £708.1 million, 9.8% higher than the same period in 2024 (30 June 2024: £645.1 million). As a result, lending balances have grown 5.8% since December 2024. Retail Finance now holds 17.3%¹ market share of the retail store and online credit new business market (30 June 2024: 15.2%)¹.
•	The new business growth has been led by the furniture and healthcare sectors from within existing retailers and signing up new retailers. We have further strengthened our position as one of the major lenders in the point of sale credit market, with over 1.3 million customers.
•	NIM has increased by 0.4 percentage points to 7.0% compared to 30 June 2024 as a result of falling interest rates and customer re-pricing mechanisms. The cost of risk has returned to the 2023 level of 1.4%, as indicated within the 2024 Annual Report (31 December 2024: 1.0%), after the one-off benefit of refinements to the IFRS 9 model during H1 2024. As a result, the risk adjustment margin decreased from 6.1% to 5.8% period on period. Net interest margin and cost of risk reflect the success of our strategy of focusing on prime sectors.
•	At the end of June 2025, 87.0% (31 December 2024: 86.7%) of the lending book related to interest-free lending, and 89.2% (31 December 2024: 87.4%) of customers have signed up to online account management allowing self-service of their account.
•	The Retail Finance account servicing app, AppToPay, has surpassed 250,000 users, with payment activity now exceeding the online account management platform.

•	New business lending has grown by 22.7% in the six months to 30 June 2025 against the same period last year, wholly through the growth of Stock Funding. In line with our previously announced strategy to focus on higher returning segments, we have seen a reduction in new consumer lending which is 18.9% lower in H1 2025 than in H1 2024. In this period, our market share of new business has been 1.0%¹ (30 June 2024: 1.2%).
•	Overall net lending balances are 0.3% lower than the 31 December 2024. While Stock Funding has grown quickly, the short lending cycle means that overall lending balances have reduced marginally.
•	Net interest margin is 30 bps lower compared to the same period last year due to an increase in mix from higher credit quality lending products. We have continued to recover from the impacts of the FCA's Borrowers in Financial Difficulty ('BiFD') review, which had an impact on collections processes, resulting in an improved cost of risk and risk adjusted margin.
•	As highlighted previously, the business had high levels of historic defaulted balances due to the operational consequences of BiFD. To manage this balance down, we successfully sold a large tranche of these loans in April 2025, and a large proportion of the remaining stock was sold in August 2025. Furthermore, we have agreed a forward flow arrangement to sell eligible accounts new to default on a regular basis.

•	We have seen strong levels of new business, particularly in the Residential Investment sector, built on a strong origination team and the refinancing of existing loans through strong customer relationships.
•	Lending balances grew by 7.9% to a record high of £1,447.5 million (31 December 2024: £1,341.4 million) despite weak economic growth and a slow property market in the South East.
•	The Residential Investment share of the portfolio increased further by the end of June 2025 to 90.7% (31 December 2024: 88.1%). This reflects both the repayment of development deals and 89% of new lending being within Residential Investment.
•	The portfolio mix shift towards Residential Investments is reflected in the reduction in the net interest margin to 2.4% (30 June 2024: 2.6%).
•	The cost of risk has increased reflecting provisions on two individual loans in default, which has reduced risk adjusted margin. The loan to value is 58.0% at 30 June 2025 and continues to remain very stable (31 December 2024: 56%, 30 June 2024: 57%) and well within risk appetite. Overall, we are positive about the low underlying credit risk within the portfolio.

•	We offer a full suite of Asset-Based Lending ('ABL') solutions to SMEs and some larger corporates who need bespoke working capital solutions for their business.
•	We operate a high-touch relationship-led model throughout the life of a facility, where partners and clients have direct access to decision-makers.
•	Our lending remains predominantly against receivables, releasing funds of up to 90% of qualifying invoices under invoice discounting facilities.
•	Business is sourced and supported directly from clients via private equity houses and professional introducers but is not reliant on the broker market.

•	Lending balances have increased by 10.7% since December 2024 driven by strong new business in the period and low client attrition. Average lending balances are at the same level as throughout 2024.
•	The new business success has come through working closely with private equity houses despite the ABL lending in our target markets being limited by lower M&A activity.
•	The net revenue margin at 6.3% in H1 2025 is in line with H1 2024 whereas in the second half of 2024 we collected high levels of fees from early client terminations.
•	The H1 2025 risk adjusted margin at 5.9% (30 June 2024: 6.3%) reflects a low cost of risk of 0.4% (30 June 2024: 0.0%) due to a few cases moving from IFRS 9 Stage 1 to Stage 2. The low cost of risk has been achieved by addressing adverse client trading performance early and working with their private equity partners to mitigate against credit losses. We have had no client failures in the period.

•	We offer a range of savings accounts that are purposely simple in design, with a choice of products from Access to 180-day notice, and six month to seven-year fixed terms across both Bonds and ISAs.
•	Our range of Savings products enables us to access the majority of the UK personal savings markets and compete for significant liquidity pools, achieving a lower marginal cost with the volume, mix and the competitive rates offered; optimised to the demand of our funding needs.

•	In the first half of 2025, the Bank of England Monetary Policy Committee reduced the UK Bank Base Rate ('BBR') from 4.75% to 4.50% on 6 February 2025 and from 4.50% to 4.25% on 8 May 2025.
•	The offer of different products at different rates allows us to manage the overall cost of funds. During the period, we have raised £1.1 billion of new deposits and retained £0.5 billion on maturity (76% of maturing fixed-term deposits) in order to fund the growth in lending balances.
•	Deposits balances have increased by 8.2% to £3,510.1 million (31 December 2024: £3,244.9 million), primarily through the successful acquisition of cash ISA accounts, a trend is being seen across the market as a whole.
•	The market for acquisition has remained very competitive, particularly for term deposits.
•	Savings balances are made up of retail customers. Of total deposits, 95.1% are fully covered by the Financial Services Compensation Scheme (31 December 2024: 95.1%) providing our customers with additional confidence about the security of their savings.
•	We continue to invest in the digital journey of our customers.

			Other reserves
Unaudited	Share capital £million	Share premium £million	Cash flow hedge reserve £million	Own shares £million	Retained earnings £million	Total £million
Balance at 1 January 2025	7.6	84.0	-	(2.2)	271.1	360.5
Profit for the six months to 30 June 2025	-	-	-	-	16.7	16.7
Other comprehensive income for the period, net of income tax	-	-	0.1	-	-	0.1
Total comprehensive income for the period	-	-	0.1	-	16.7	16.8
Purchase of own shares	-	-	-	(0.2)	-	(0.2)
Sale of own shares	-	-	-	0.5	-	0.5
Loss on sale of own shares	-	-	-	-	(0.5)	(0.5)
Issue of shares	-	-	-	-	-	-
Dividends	-	-	-	-	(4.2)	(4.2)
Share-based payments	-	-	-	-	1.2	1.2
Balance at 30 June 2025	7.6	84.0	0.1	(1.9)	284.3	374.1

				Other reserves
Audited	Share capital £million	Share premium £million	Cash flow hedge reserve £million		Own shares £million	Retained earnings £million	Total £million
Balance at 1 January 2024	7.6	83.8	(0.3)		(1.4)	254.8	344.5
Profit for the year to 31 December 2024	-	-	-		-	19.7	19.7
Other comprehensive income for the year, net of income tax	-	-	0.3		-	-	0.3
Total comprehensive income for the year	-	-	0.3		-	19.7	20.0
Purchase of own shares	-	-	-		(1.4)	-	(1.4)
Sale of own shares	-	-	-		0.6	-	0.6
Loss on sale of own shares	-	-	-		-	(0.5)	(0.5)
Issue of shares	-	0.2	-		-	-	0.2
Dividends paid	-	-	-		-	(5.2)	(5.2)
Share-based payments	-	-	-		-	2.3	2.3
Balance at 31 December 2024	7.6	84.0	-		(2.2)	271.1	360.5

David McCreadie, Chief Executive Officer, said:

Financial highlights

Financial summary

Optimising for growth: Execution against strategic priorities

Enquiries:

Secure Trust Bank PLC

Investec Bank plc (Joint Broker)

Shore Capital Stockbrokers (Joint Broker)

Camarco

Forward looking statements

About us

Our vision

To be the most trusted specialist lender in the UK

Purpose

To help more consumers and businesses fulfil their ambitions

Our strategic priorities

Strengths

Values

Stakeholders

Chief Executive's statement

Strategic pivot

Financial results

Capital and funding

Strategic priorities

Simplify

Enhance customer experience

Leverage networks

Enabled by technology

Regulatory and legal developments

Environmental, Social and Governance ('ESG')

CEO succession

Other Executive Committee updates

Outlook

Financial review

Income statement

Operating income

Impairment charge

Fair value and other gains on financial instruments

Operating expenses

Taxation

Exceptional items

Distributions to shareholders

Balance sheet

New business

Customer lending and deposits

Investments and wholesale funding

Tier 2 subordinated liabilities

Capital

Management of capital

Capital resources

Capital requirements

Liquidity

Management of liquidity

Liquid assets

Business review

Consumer Finance

Retail Finance

What we do

H1 2025 performance

Outlook

Vehicle Finance

What we do

H1 2025 performance

Outlook

Business Finance

Real Estate Finance

What we do

H1 2025 performance

Outlook

Commercial Finance

What we do

H1 2025 performance

Outlook

Savings

What we do

H1 2025 performance

Outlook

Market review

Economic review

•	Note 10.1 Allowances for impairment of loans and advances to customers
•	Note 13.1 Provisions for liabilities and charges

•	Real Estate Finance: lending secured against property assets to a maximum 70% loan-to-value ratio on fixed or variable rates over a term of up to five years.
•	Commercial Finance: our asset-based lending facilities are predominantly against trade receivables, releasing up to 90% of qualifying invoices under invoice discounting facilities. Facilities can also be secured against other assets, such as inventory, plant and machinery and property either short or long term and for a range of loan-to-value ratios alongside invoice discounting facilities.

Unaudited 30 June 2025	Retail Finance £million	Vehicle Finance £million	Real Estate Finance £million	Commercial Finance £million	Other £million	Group £million
Interest income and similar income	76.9	38.4	45.2	13.5	13.8	187.8
Interest expense and similar charges	(29.3)	(12.4)	(28.8)	(7.8)	(10.5)	(88.8)
Net interest income	47.6	26.0	16.4	5.7	3.3	99.0
Fee and commission income	1.4	0.6	0.2	5.2	-	7.4
Fee and commission expense	-	-	-	-	(0.1)	(0.1)
Net fee and commission income	1.4	0.6	0.2	5.2	(0.1)	7.3
Operating income	49.0	26.6	16.6	10.9	3.2	106.3
Net impairment charge on loans and advances to customers	(9.5)	(16.0)	(4.7)	(0.7)	-	(30.9)
Fair value gains on financial instruments	-	-	0.2	-	(0.1)	0.1
Operating expenses	(12.7)	(15.1)	(5.3)	(4.1)	(15.0)	(52.2)
Profit/(loss) before income tax before exceptional items	26.8	(4.5)	6.8	6.1	(11.9)	23.3
Exceptional items	-	-	-	-	(1.0)	(1.0)
Profit/(loss) before income tax	26.8	(4.5)	6.8	6.1	(12.9)	22.3

Loans and advances to customers	1,436.3	556.6	1,447.5	388.4	-	3,828.8

Unaudited 30 June 2024	Retail Finance £million	Vehicle Finance £million	Real Estate Finance £million	Commercial Finance £million	Other £million	Group £million
Interest income and similar income	66.5	32.4	42.9	15.6	21.2	178.6
Interest expense and similar charges	(25.3)	(9.9)	(26.7)	(9.4)	(19.1)	(90.4)
Net interest income	41.2	22.5	16.2	6.2	2.1	88.2
Fee and commission income	1.5	1.0	0.3	5.2	-	8.0
Fee and commission expense	-	(0.1)	-	-	-	(0.1)
Net fee and commission income	1.5	0.9	0.3	5.2	-	7.9
Operating income	42.7	23.4	16.5	11.4	2.1	96.1
Net impairment charge on loans and advances to customers	(4.4)	(20.9)	(2.9)	-	-	(28.2)
Other gains/(losses)	-	0.1	-	-	-	0.1
Fair value gains on financial instruments	-	-	0.3	-	0.4	0.7
Operating expenses	(13.2)	(15.1)	(5.1)	(3.9)	(14.3)	(51.6)
Profit/(loss) before income tax before exceptional items	25.1	(12.5)	8.8	7.5	(11.8)	17.1
Exceptional items	-	-	-	-	-	-
Profit/(loss) before income tax	25.1	(12.5)	8.8	7.5	(11.8)	17.1

Loans and advances to customers	1,315.4	497.9	1,271.5	336.8	-	3,421.6

Audited 31 December 2024	Retail Finance £million	Vehicle Finance £million	Real Estate Finance £million	Commercial Finance £million	Other £million	Group £million
Interest income and similar income	140.7	69.2	87.1	29.8	39.2	366.0
Interest expense and similar charges	(53.9)	(21.6)	(54.5)	(17.6)	(33.5)	(181.1)
Net interest income	86.8	47.6	32.6	12.2	5.7	184.9
Fee and commission income	3.2	0.9	0.4	14.6	0.1	19.2
Fee and commission expense	-	(0.1)	-	(0.1)	-	(0.2)
Net fee and commission income	3.2	0.8	0.4	14.5	0.1	19.0
Operating income	90.0	48.4	33.0	26.7	5.8	203.9
Net impairment charge on loans and advances to customers	(13.3)	(38.7)	(4.0)	(5.9)	-	(61.9)
Other gains/(losses)	-	0.1	-	-	(0.4)	(0.3)
Fair value gains on financial instruments	-	-	-	-	1.2	1.2
Operating expenses	(26.1)	(31.6)	(10.0)	(8.1)	(28.0)	(103.8)
Profit/(loss) before income tax before exceptional items	50.6	(21.8)	19.0	12.7	(21.4)	39.1
Exceptional items	-	-	-	-	(9.9)	(9.9)
Profit/(loss) before income tax	50.6	(21.8)	19.0	12.7	(31.3)	29.2

Loans and advances to customers	1,357.8	558.3	1,341.4	351.0	-	3,608.5

	Unaudited 30 June 2025 £million	Unaudited 30 June 2024 £million	Audited 31 December 2024 £million
Fair value movement during the period - interest rate derivatives	(5.3)	1.3	1.6
Fair value movement during the period - hedged items	5.2	(1.2)	(1.5)
Hedge ineffectiveness recognised in the income statement	(0.1)	0.1	0.1
Inception and amortisation adjustment¹	(0.2)	0.4	0.6
Gains recognised on derivatives not in hedge relationships	0.4	0.2	0.5
	0.1	0.7	1.2

	Unaudited 30 June 2025 £million	Unaudited 30 June 2024 £million	Audited 31 December 2024 £million
Motor Finance commissions
Redress	-	-	5.2
Costs	-	-	1.7
	-	-	6.9
BiFD Vehicle Finance collections review
Redress	0.3	-	0.2
Costs	0.7	-	1.3
	1.0	-	1.5
Organisational redesign	-	-	1.5
Total exceptional items	1.0	-	9.9

	Unaudited 30 June 2025	Unaudited 30 June 2024	Audited 31 December 2024
Profit attributable to equity holders of the parent (£million)	16.7	12.8	19.7
Weighted average number of ordinary shares (number)	19,071,558	19,043,402	19,057,161
Earnings per share (pence)	87.6	67.2	103.4

	Not credit-impaired			Credit-impaired
Unaudited 30 June 2025	Stage 1: Subject to 12-month ECL £million	Stage 2: Subject to lifetime ECL £million		Stage 3: Subject to lifetime ECL £million	Total provision £million	Gross loans and advances to customers £million	Provision cover %
Consumer Finance:
Retail Finance	12.9		8.5	9.1	30.5	1,466.8	2.1
Vehicle Finance:
Voluntary termination provision	5.5		1.8	-	7.3
Other impairment	10.4		7.6	32.4	50.4
	15.9		9.4	32.4	57.7	614.3	9.4
Business Finance:
Real Estate Finance	0.6		0.4	16.8	17.8	1,465.3	1.2
Commercial Finance	0.6		0.4	0.5	1.5	389.9	0.4
	30.0		18.7	58.8	107.5	3,936.3	2.7

Unaudited 30 June 2025		UK Unemployment Rate - annual average				UK HPI - movement from H1 2025
Scenario	Weightings	Year 1 %	Year 2 %	Year 3 %	5-Year Average %	Year 1 %	Year 2 %	Year 3 %	5-Year Average %
Upside	20%	4.4	3.9	3.7	3.9	3.7	8.4	14.8	5.1
Base	50%	4.8	4.9	4.7	4.6	1.6	3.9	7.8	3.9
Downside	25%	5.6	6.5	6.8	6.4	(6.6)	(9.2)	(10.4)	0.3
Severe	5%	5.9	7.3	7.5	7.1	(12.3)	(18.5)	(23.2)	(2.6)