Commenting on the successful results, Phillip Monks, CEO of Aldermore said: “This is an excellent set of results which demonstrate the continued success of the Group. I’m proud to say that Aldermore has now lent around £4.4 billion to Britain’s SMEs and homeowners, an increase of 30% since the start of the year.”
Objectives from Aldermore are currently on track, where cost to income ratio for the year to date is around 60 per cent – the target for the end of 2017 is at c40 per cent. The return on equity in Q3 in isolation is also nearing 20 per cent – which is on its way to the c20 per cent aim which was set to reach by the end of 2017.
The lender has also revealed that the organic growth in lending has hit record levels of £1.7 billion, which is shows a 63 per cent rise on the first half of the year.
Total lending in Q3 was also reported to be up by 10 per cent.
|
|
30 September 2014 |
30 June 2014 |
31 December 2013 |
Movement v June 14 |
Movement v Dec 13 |
|
|
£m |
£m |
£m |
% |
% |
|
Loans to SMEs |
2,105 |
1,970 |
1,694 |
7% |
24% |
|
Loans to homeowners |
2,294 |
2,039 |
1,680 |
12% |
37% |
|
Total |
4,399 |
4,009 |
3,374 |
10% |
30% |
|
|
|
|
|
|
|
|
Customer deposits |
4,161 |
3,859 |
3,464 |
8% |
20% |
Phillip Monks added: “As expected, with this strong growth we are driving rapidly accelerating profitability. Looking at the third quarter in isolation, profits generated were close to those for the first two quarters of the year combined and the return on equity was approaching 20 per cent.”
“In addition to strong growth in interest income, we continue to see the benefits of our ongoing activity to diversify our funding base in an increased net interest margin and our ability to leverage our digital operating model in a reduced cost to income ratio. I’m also pleased with the robust credit performance of the portfolio reflected in the improved cost of risk.”
The results also showed that customer deposits had risen by 8 per cent in the third quarter, where deposits for SMEs have continued to surge, where they are currently at £0.9 billion – a 15 per cent increase in Q3.
Recent rumours in the press claimed that Aldermore may have a strategy to equal or exceed its previous flotation plans, following the removal of its IPO last month. Virgin Money, which also scrapped its IPO plans around the same time as Aldermore, announced the initiation of its IPO last week. However, when asking Charles Haresnape of Aldermore Bank about its plans to return to the market to float, he declined to comment on the matter.
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