2014: Another Record Year

POSTED: 17th February 2015
IN: Newsroom

2014: Another Record Year

Underlying profit before tax doubled

• Underlying PBT(1) of £56m is more than double 2013 result
• Cost/ income ratio(1) improved by 6pts to 60% (2013: 66%)
• Return on equity(1) increased to 15% (2013: 12%)

Accelerating profit trajectory

• Net interest margin of 3.6% for H2 2014 (FY 2014: 3.4%)
• Cost/ income ratio(1) of 57% for H2 2014 (FY 2014: 60%)
• Return on equity(1) increased to 19% for H2 2014 (FY 2014: 15%)

Increased support for UK SMEs and homeowners

• Net loans to customers up by 42% to £4.8bn (2013: £3.4bn)
• Lending to SMEs up by 32% to £2.2bn (2013: £1.7bn)
• Residential Mortgages grew by 53% to £2.6bn (2013: £1.7bn)

Innovative online deposit franchise

• Customer deposits up by 29% to £4.5bn (2013: £3.5bn)
• Excellent growth in SME deposits, up by 97% to £1.0bn (2013: £0.5bn)

Diversified funding and strongly capitalised

• £333m inaugural AAA RMBS further diversifies funding base
• £75m of new Additional Tier 1 capital supports medium term growth
• Total capital ratio of 14.8% (2013: 14.2%) and leverage ratio of 6.3% (2013: 5.3%)

Improved targets reflect confidence in outlook

• 2015 net loans to grow in line with the current nominal run rate
• Cost/ income ratio now to be less than 40% by the end of 2017

Phillip Monks, CEO, commented:

“2014, was another great year with profit before tax on a like for like basis more than double that generated in 2013 and a return on equity approaching 20% for the second six months of the year.”

“We continue to support SMEs and homeowners with our straightforward products and granted £2.4bn of new loans in 2014, our highest level to date. Our innovative online savings franchise also goes from strength to strength, with total deposits up by 29% to £4.5bn overall and, within this, SME deposits almost doubling to over £1bn.”

“Our confidence in the outlook is reflected in our improved guidance. In 2015, we again expect to grow net loans in line with the current nominal run rate. We will continue to leverage our legacy-free operating platform and I now expect to deliver a cost/ income ratio of below 40% by the end of 2017.”

(1) Excluding IPO related costs of £6.0m pre-tax


Holly Marshall
Tel: +44 (0) 20 3553 4218

Andy Homer
Tel: +44 (0) 20 3553 4244

Notes to Editors:

For further information about Aldermore, our financial backers and our PR contacts, please review our Notes to Editors page.

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