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Aldermore Group PLC 2016 Results

POSTED: 2nd March 2017
IN: Newsroom
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Underlying profit before tax¹ up 34% to £133m (2015: £99m)

  • Reported profit before tax increased by 36% to £129m (2015: £95m)
  • Underlying cost/income ratio¹ further improved to 45% (2015: 51%) demonstrating scale benefits and cost control

Delivering a high-teens return on equity

  • Underlying return on equity¹ of 18.0% (2015: 20.6%)
  • Basic earnings per share grew by 11% to 25.2p (2015: 22.7p)

Continued strong, profitable organic growth and robust credit control across the diversified portfolio

  • Excellent loan origination; up by 24% to £3.2bn (2015: £2.6bn)
  • Loan growth of 22% to £7.5bn (31 December 2015: £6.1bn)
  • Asset Finance +17%; SME Commercial Mortgages +12%; Buy-to-Let +38%; Residential Mortgages +7%
  • Strong net interest margin at 3.5% (2015: 3.6%)
  • Continued robust credit performance; cost of risk at 23bps (2015: 19bps) in line with expectations

Strong capital position maintained

  • Total capital ratio of 15.6% (31 December 2015: 15.1%)
  • CET1 capital ratio of 11.5%, up from 11.0% at H1 2016 (31 December 2015: 11.8%)
  • Tangible book value per share 21% to 153p (31 December 2015: 126p)

Continuing to delight our customers

  • Net Promoter Score increased 14 points to +43 from +29 in 2015
  • 94% of customers who reviewed Aldermore online would recommend us
  • Awards in the year include ‘Leasing and Asset Finance Provider of the Year’ (NACFB), ‘Best Specialist Mortgage Lender’ (Your Mortgage) and ‘Best Business Savings Provider’ (Moneynet)

Phillip Monks OBE, Chief Executive Officer, commented:

“2016 was another remarkable year for the Group. We’ve continued our track record of delivering strong growth, achieving record underlying profitability of £133m before tax, up 34%. This has been achieved whilst maintaining a healthy net interest margin of 3.5%, and by using the scalability of our operations to become even more efficient.

“More than 220,000 businesses and individuals now choose Aldermore for their banking needs and in 2016 the amount we lent to customers increased by £1.3bn to £7.5bn, driven by record levels of organic origination across both our Mortgage and Business Finance divisions. Our straightforward savings business grew by 16%, with around 30% of balances coming from businesses. Growth has been achieved across our diversified portfolio whilst maintaining a robust approach to risk management. 

“The Group maintains a strong capital position and, as planned at IPO, the Bank reached the key milestone of becoming capital self-sufficient in the second half of 2016.

“We generated an underlying return for our shareholders of 18% in 2016 and we remain focused on continuing to deliver returns around this level over the medium term. We have made a strong start to 2017, continuing to balance growth, risk and returns across the Group.”

¹ Underlying basis excludes goodwill impairment of £4.1m (pre-tax and post-tax) in 2016 and IPO related costs of £4.1m pre-tax and £3.4m post-tax in 2015.

Enquiries

Analysts

Media

 

Martin Adams

Holly Marshall

Tom Baldock – Lansons PR

Tel: +44 (0) 20 8185 3108

Tel: +44 (0) 20 3553 4828

Mob: +44 (0) 786 010 1715

 

 

 

Ryan Jones

Andy Homer

 

Tel: +44 (0) 20 8185 3146

Tel: +44 (0) 20 3553 4244

 

 

A live webcast of the analyst presentation will be broadcast on our IR website www.investors.aldermore.co.uk at 9:30am on 2 March 2017 and is available via a listen only conference call by dialling +44 (0) 20 3059 8125. An indexed version of the webcast will be made available on the website shortly after the event.

Notes to Editors:


For further information about Aldermore, please review our Notes to Editors page

Follow us on Twitter: @AldermoreNews

 

 

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