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Aldermore Financial Results for the Year Ending 31 December 2012

POSTED: 1st May 2013
IN: Newsroom
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Aldermore, Britain's leading challenger bank, has today published its financial results for the year ending 31 December 2012.

Highlights:

  • Lending increased by over 75%
  • Retail deposits increased by almost 60%
  • Balance sheet expanded by over 60% to £2.5 billion
  • Achieved profitability in third full year of operating
  • Targeting another 60% of balance sheet growth in 2013


These results show that Aldermore significantly expanded all of its business areas during the year, with overall lending up by over 75% and the total balance sheet size up by over 60% to over £2.5 billion. In 2013 Aldermore is targeting another 60%, or £1.5 billion, of balance sheet growth.

During 2012 Aldermore achieved the significant milestones of having lent more than £1 billion to SMEs and more than £1 billion to homeowners and recorded full-year profitability in only the third year of operating.

Data released by the Bank of England on the Funding for Lending Scheme also demonstrated Aldermore's significant contribution to supporting UK householders and SMEs: Aldermore's 2012 net lending figures of £228 million (Q3) and £251 million (Q4) were the fifth and sixth highest figures respectively of all FLS participants.

Alongside achieving full-year profitability, Aldermore also continued to invest in technology, operating platforms and staff to build a bank for the future. The lack of legacy infrastructure is a major benefit in terms of developing and expanding the Bank and in line with Aldermore's growth strategy, 17% more people have been employed by the Bank this year.

Since its inception Aldermore has provided customers with straightforward and attractive banking products, coupled with exceptional customer service, and was delighted to be recognised in 2012 in a number of key industry-leading awards, including:

  • Commercial Mortgage Provider of the Year by the NACFB

  • Three awards from MoneyFacts (Best Fixed Rate Savings account, Consumer MoneyFacts Best ISA Provider for the second year running and ISA Provider of the year)

  • FT Financial Advisor 5 Star Service award for the second year running for its Residential Mortgage business

Phillip Monks, CEO, commented:

"By delivering what retail and SME customers want in terms of products and customer service, underpinned by always being Reliable, Expert, Dynamic and Straightforward, we grew Aldermore's balance sheet to over £2.5 billion in 2012 compared to £1.6 billion last year and we have now lent more than £1 billion to SMEs. We are supporting UK businesses and homeowners by expanding our lending at a time when a number of the UK's largest banks are reducing their overall lending."

"We are in a great position to build on this being free from legacy systems with modern Internet-based lending and savings products, demonstrating that it is possible to create a real and dynamic alternative to the traditional banks. I look forward to our continued success in 2013 as we grow our market share further as well as launching new products into a marketplace that is hungry for change."

For further information journalists can contact:

Andy Donald, Andrea Coleman or Duncan Browne at Maitland on 020 7395 0475.

Key Financial Information

 

31 December 2012

31 December 2011

 

£m

£m

Results

   

Net operating income

55.6

42.6

Administrative expenses

(50.6)

(40.7)

Profit/(loss) after taxation

0.8

(0.9)

     

Balance sheet

   

Total Assets

2,520

1,554

Total Liabilities

2,349

1,388

Shareholders' funds

171

166

     

Key Ratios

   

Annual growth in loans

77% (£899m)

144% (£686m)

Annual growth in retail deposits

60% (£794m)

112% (£713m)

Tier 1 capital ratio

11.8%

18.5%

Liquidity buffer (as a % of total deposits)

18.2%

19.8%

The full Report and Financial Statements for Aldermore are available for download here.

 

**Ends**

 

Notes to Editors

About Aldermore

Aldermore is a new British bank and one of the best capitalised banks in the UK. With backing provided by AnaCap and Morgan Stanley Alternative Investment Partners, Morgan Stanley's Private Equity Fund of Funds business and new investment from the consortium of funds managed by Goldman Sachs Asset Management, Honeywell Capital Management and the Ohio Public Employees Retirement System, Aldermore raises deposits from consumers and lends to homeowners and small and medium sized businesses.

As a British bank, Aldermore is regulated by the Financial Services Authority and is registered under the Financial Services Compensation Scheme, which means customers' savings are protected up to the statutory limit of £85,000 per person. Aldermore is also a member of the Council of Mortgage Lenders.

Aldermore markets its lending products via professional financial advisers and specialist commercial finance brokers located throughout England and Wales.

About AnaCap Financial Partners

Established in 2005, AnaCap is Europe's largest specialist private equity investment advisor in the financial services sector. Based in London and investing across Europe, AnaCap advises funds with more than €1 billion under management. AnaCap's funds invest in businesses with high growth potential and strong management teams. AnaCap works with management teams to improve infrastructure and business processes. It employs sophisticated, twenty-first century technology to create low cost, scalable, sustainable and highly digital based platforms. AnaCap's day-to-day support allows management to pursue growth strategies in the most efficient and effective manner.

AnaCap's team of professionals also assists investee companies in assessing and reducing key credit and market risks. This expertise in risk and liability management is a key factor in the strong performance of AnaCap's portfolio.

The success of AnaCap's investment strategy and team has attracted investment from highly regarded global institutional investors including Goldman Sachs, Allianz, Morgan Stanley Alternative Investment Partners, Honeywell, State of New Jersey and Adams Street Partners.

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