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Manx Financial Group

AIM: MFX

Market Cap£20m

Last Close 17p

Manx Financial Group is an independent banking group founded in 1935, domiciled in the Isle of Man. Its 100% owned bank, Conister Bank, is regulated by the UK’s Financial Conduct Authority (FCA) as well as the Isle of Man Financial Services Authority. MFX also owns Edgewater Associates, the largest independent financial advisory services company in the Isle of Man.

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Investment summary

Manx Financial Group (MFG) had a strong H122, with a PBT of £2.3m more than doubling and a return on average equity (ROE) of 16.8%. Loans grew 16% as the group continues to reposition itself into prime lending segment ahead of the more challenging macroeconomic environment. The net interest margin improved to 8.9% (8.5% in H121) and impairments remain under control with an annualised charge of 1.9% (2.1% in H121). Conister Bank (MFG’s bank) has formally applied for a UK branch deposit-taking licence on 25 October. This will give this Isle of Man bank a greater foothold in the UK for growth. The balance sheet is well capitalised (total capital 17.7%, CET1 of 14.2%) and still carries surplus liquidity to fund expansion plans. The bank is trading at an FY21 P/BV of only 0.8x despite its track record of ROE being above its cost of equity (COE, which we estimate at 10–11%) and ability to expand its balance sheet.

Content on Manx Financial Group
Manx Financial Group – Payment Assist acquisition
Financials | research Flash note | 17 May 2022
Stock market background or forex trading business graph chart for financial investment concept of Isle Of Man map. business idea and technology innovation design.
Manx Financial Group – Resilient, profitable and ready for growth
Financials | research Initiation | 7 March 2022
Stock market background or forex trading business graph chart for financial investment concept of Isle Of Man map. business idea and technology innovation design.
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Share price graph
Price performance
%
1m
3m
12m
Actual 31.3 85.3 85.3
Relative* 25.1 91.4 93.3
52-week high/low 16.0p/7.5p
*% relative to local index