Manx Financial Group (LN: MFX)

Currency in GBP

Last close As at 26/01/2023

GBP0.21

−0.50 (−2.33%)

Market capitalisation

GBP25m

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.

Sector

Financials

Equity Analyst

Pedro Fonseca

Pedro Fonseca

Analyst, Financials

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 16.2 53.6 173.0
Relative 8.3 33.5 170.1
52 week high/low 29.0p/7.5p

Financials

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.

Thematics

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