Buy-to-letNews

Aldermore sees rise in profits

Aldermore’s originations and profit before tax have both risen, the specialist bank has reported.

Originations rose by 30% year-on-year to reach £3.9bn in the first six months of 2019.

From July 2018 to June 2019 profit before tax was £129.6m, an increase from £117.1m in 2018.

Phillip Monks, chief executive of Aldermore Group, said: “I am pleased that the last year, the first under our parent company FirstRand, has been a successful one for Aldermore.

“Our performance in the lending and savings markets has been strong against a backdrop of intense competition and economic and political uncertainty.”

Net lending to customers, including SMEs, homeowners, landlords and vehicle owners, now totals £10.6bn, up from £9bn in 2018.

From 2018 to 2019 the percentage of the lender’s residential mortgage increased as a proposition of the overall mortgage book, from 29% to 37%.

Buy-to-let lending as a percentage dropped from 71% to 63%.

Aldermore’s average product rating from customers is 4.5 out of five and 90% of reviewers rated the bank at four or more.

Monks added: “Aldermore was established during the financial crisis to help SMEs who were unable to borrow from traditional banks.

“With Brexit on the horizon there is of course uncertainty in the air, with downward pressure on net interest margins and worsening credit performance likely to remain a feature of the market.

“As we look forward, our diversified lending book together with our strong savings base continues to position us well. We are excited about the potential opportunities our enlarged group can bring to benefit customers.

“Our business model, risk management processes and preparations for Brexit eventualities mean we are well placed to navigate through the political and market uncertainties of the next few months and years.

“We have a resilient and robust model which will enable us to continue to support the needs of our customers through the cycle.”

 

 

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