Together sees average monthly lending rise by 68.5%

Together has announced that its average monthly lending for the quarter ending 31st March reached £125.4m, a 68.5% increase on the previous three months, as it continued to increase new lending.

The group loan book hit £3.93bn, a 1.2% rise on 31st December (£3.88bn), but down 8.9% compared with £4.32bn in the same quarter last year. 

The lender’s interest receivable and similar income was £89.9m, down 3.2% compared with £92.9m in the previous quarter, and a 10.2% drop on Q3 2020’s results (£100.1m).

According to Together, this is a result of the decrease in the size of the loan book from the previous year, along with changes in origination mix as it increased volumes of some of its lower-yielding products back towards pre-Covid-19 levels and received higher redemption levels on higher yielding development loans during the current quarter.

Annualised cost of risk for the quarter was 0.0% due to a negligible impairment charge during the quarter, lower than 3.8% reported in Q3 2020, which was due to the initial impact of the pandemic.

Underlying profit before tax stood at £44m, an increase to the numbers registered in the previous quarter (£38.2m) and Q3 2020 (£13.2m), due mainly to a reduction in impairment charge during the quarter.

Gerald Grimes, group CEO designate at Together (pictured above), said: “As transaction volumes in the specialist mortgage markets continued their recovery towards pre-pandemic levels, we also maintained the upward momentum in our lending levels.

In January, Together announce the issuance of a £500m bond and a small balance commercial real estate MBS for £200m in March

“These issuances contributed to the group having undrawn facility headroom of £1.3bn at 31st March.”

Marc Goldberg, commercial finance CEO at Together, added: “We are pleased to have delivered another strong performance in the quarter, while continuing to support our customers and shape our business for the future. 

“These excellent results reflect the continuing resilience, dedication and commitment of all of our colleagues.”

Pete Ball, personal finance CEO, stated: “Supported by the successful vaccination roll-out and improving consumer confidence, the UK economy is forecast to recover to pre-pandemic levels early next year. 

“With strong levels of capital and liquidity and our modernisation and transformation programmes well underway, Together is well placed to help increasing numbers of customers and to support the UK's economic recovery.”

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