Challenger bank reveals 88% profit jump

Challenger bank reveals 88% profit jump




Aldermore has announced a record year in 2015.

 

 

Aldermore has announced a record year in 2015.

The challenger bank reported an 88% increase in profit before tax, which jumped to £94.7m from £50.3m. 

It also reported net loan growth of 29% in asset finance, 50% growth in SME commercial mortgages, 18% growth in buy-to-let (BTL) and 42% growth in residential mortgages.
 
Phillip Monks, CEO of Aldermore Group, said: "It has been an excellent year, both operationally and financially, for the group.
 
“Today's results clearly demonstrate our continued focus on delivery across a range of key metrics, with our net interest margin exactly as expected, continued improvement in our cost/income ratio and another strong credit performance.
 
“We have a clear and differentiated growth strategy and remain both excited about the opportunity in our chosen markets and confident of our ability to deliver continued strong profitable growth and attractive, sustainable returns for shareholders."
 
The bank said it had yet to see any negative fallout from the imminent increase in stamp duty tax on BTL properties but expects to be able to judge the impact later this year.
 
Aldermore said that over half of its BTL mortgages were related to remortgage rather than purchase transactions and were therefore not subject to stamp duty.
 
Aldermore’s SME commercial mortgages business reported a 42% increase in loan origination driven by growth within the bank’s commercial investment and property development portfolios.

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