Canada Group’s SME bank receives over £1bn in lending proposals
Canada Group’s SME bank has already received more than £1bn worth of lending proposals, as the capital calls for more pandemic support.
It comes a year after Recognise Bank launched operations, the Group said today in its unaudited interim results for the six months to September 30.
The bank, which because fully licensed in September, has also attracted over £60m in savings deposits, after launching its personal savings products just two days after becoming authorised.
“We are delighted that our subsidiary, Recognise Bank, became a fully licensed UK SME bank in September when the PRA lifted all restrictions, so allowing entry to the UK savings market,” chair Philip Jenks said.
“Recognise Bank successfully launched its first savings products within two days of this and is now in a position to drive forward its business plan and focus on meeting the future needs of the UK SME business sector.”
Recognise, which partners with over 60 commercial finance brokers, tipped a loss before tax for the Group – which was in line with its business plan.
The Group lost £5.8m in the period, with £5.6m from the bank, as it develops its business.
Canada Group also raised £11.6m before expenses from shareholders in September, which have already been injected into Recognise in support of its capital base, as it looks to build on its lending portfolio.
“While uncertainties on the continuing impact of the Covid-19 pandemic remain, we believe the fundamentals in the UK continue to point to steady economic recovery,” Jenks added.
“Recognise Bank, which has no legacy book and a highly experienced management team, is well positioned to capitalise upon the opportunities this will offer.
“The funds invested in Recognise Bank to date will support future balance sheet growth as Recognise Bank implements its business plan and moves towards break even.”