Manx Financial Group (LON:MFX), the diversified provider of financial services across the Isle of Man and the UK, is entering 2026 with solid momentum, according to the latest research note from Shore Capital. The Group’s continued strategic progress, resilient performance across its subsidiaries and clear growth ambitions are laying the foundation for long-term shareholder value.
Solid Progress Across Core Businesses
A standout performer in 2025 was Conister Bank, the Group’s core banking arm. It recorded 2.1% quarter-on-quarter loan book growth and 7.3% deposit growth, contributing to strong year-on-year increases of 11.6% and 11.7% respectively. With a loan-to-deposit ratio of 92.8% and a provisional net lending rate of 10.4%, the Bank has managed to enhance its net interest margin through disciplined pricing, even in the face of temporary lending slowdowns linked to UK Budget uncertainty.
Payment Assist, Manx’s Buy Now, Pay Later (BNPL) business, also delivered a powerful Q4. Advances jumped by £18.7 million to £59.7 million, contributing to a full-year increase of £49.2 million, reaching £219.7 million. The business is gearing up for regulatory oversight from July 2026 and is investing in a new collections system, while actively pursuing an Irish consumer credit licence, potentially unlocking a new growth market.
Strategic Growth Through Innovation
One of the most exciting developments for the Group is the forthcoming launch of the Conister Overdraft in Q2 2026. Designed with capped interest – ceasing after 90 days – the product aims to provide a consumer-friendly solution in a market significantly underserved since the FCA’s 2020 overdraft reforms. With 16.5 million people having lost unarranged overdrafts and 6–8 million losing arranged ones, this product is well-positioned to meet clear demand. Crucially, Conister can leverage Payment Assist’s 1 million customers and 8,000 garages to access this market from day one.
The Group’s Manx Ventures arm and other unregulated lending subsidiaries also performed strongly, with management actively evaluating monetisation routes such as partial sales, IPOs or joint ventures. At the same time, they remain open to value-accretive acquisitions that could expand sector reach and scale.
Navigating Regulatory Headwinds
While growth is evident, Manx Financial Group is also addressing upcoming regulatory requirements. This includes anticipated provisions for the FCA’s forthcoming Discretionary Commission Arrangements (DCA) in motor finance, with further adjustments related to the Bounce Back Loan Scheme guarantee. Although the impact has yet to be quantified, the Group’s proactive stance is expected to enhance balance sheet clarity.
Analyst’s Take
Research Analyst Gary Greenwood summarises the outlook with confidence, stating:
“Manx Financial Group enters 2026 with solid momentum, supported by resilient lending, expanding product capability and disciplined management. Although regulatory and provisioning requirements present short-term challenges, the Group is addressing them while continuing to invest in core growth areas.”
He adds that while profits are expected to dip year-on-year in FY25 due to one-off gains in the prior year and the regulatory provisions, the company is well placed to return to growth thereafter.
FY25 Operational and Financial Highlights:
- Loan book growth (YoY): +11.6%
- Deposit growth (YoY): +11.7%
- Loan-to-deposit ratio: 92.8%
- Payment Assist FY advances: £219.7 million
- New overdraft launch planned: Q2 2026
- Irish licence application in progress
- Exploring monetisation of non-core subsidiaries
On a Final Note
Manx Financial Group’s strategic diversification, technological investment and disciplined execution continue to set the pace for growth in 2026. While navigating industry regulations with transparency, the company is positioning itself to tap into underserved segments and expand into new markets. With a clear vision and robust fundamentals, Manx Financial Group appears poised for a strong year ahead.
