LONDON (ShareCast) - (Sharecast News) - Manx Financial Group posted a jump in first-half profits on Monday, despite a "challenging" economic backdrop.
Operating income at the Isle of Man-based financial services firm rose to £18.4m from £17.6m in the six months to June end, supported by net interest income of £17.7m, up from £17.3m a year previously.

Since the year end, the net loan book increased by £19.8m to £392.6m.

Pre-tax profits rose 16% to £4.1m.

Jim Mellon, executive chair, called it a "commendable" performance amid "challenging economic conditions".

He continued: "Our strategic initiatives have been centred on growth, simplification and technology enhancement, resulting in record profits and loan book growth while maintaining robust liquidity and capital positions.

"Despite persistent high inflation and interest rates, the outlook for the economies of the Isle of Man and the UK remain more favourable compared to other jurisdictions."

Shares in Manx came under pressure in morning trading, however, losing 7% at 33.60p as at 0930 BST.

Speaking more generally about the share price's longer-term performance, Mellon said: "Our market valuation have improved from a substantial discount to a slight premium over net asset value, although it remains undervalued with an earnings to market capitalisation ratio of 6.0.

"Efforts to enhance investor engagement are ongoing."

Looking to the full year, Manx - which owns Conister Bank and Blue Star Business Solutions, among other brands - said it was focused on a "cautious expansion" into the European Union via an Irish consumer credit licence.

However, it reiterated that its primary focus remained on the Isle of Man and UK.

Mellon concluded: "I remain confident regarding the outlook for the group for the remainder of the year."

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