Aldermore Group PLC Q1 2017 Interim Management Statement

POSTED: 11th May 2017
IN: Newsroom

Strong customer driven growth with organic new lending of c£1bn

  • Net loans up 6% to £7.9bn (end 2016: £7.5bn)
  • Growth driven by strong levels of new lending up 17% to £949m (3M 2016: £814m)
    • New lending to Business Finance customers up 11% to £303m (3M 2016: £272m)
    • New lending to Mortgage customers up 19% to £646m (3M 2016: £542m)
  • Customer deposits increased 5% to £7.0bn (end 2016: £6.7bn)
  • Net interest margin remains stable at 3.5% in the quarter

Robust capital position in line with Management expectations

  • CET1 capital ratio(1) stable at 11.5% (end 2016: 11.5%)
  • Tangible book value per share(2) increased by 5% to 160.3p (end 2016: 152.5p)
  • Announced our intention to call £40m Tier 2 notes in May 2017, as part of on-going capital management

Continued progress in strategic priorities outlined in March

  • Industry recognition for our customer driven strategy: Winner of the Best Service from a Buy-to-Let Mortgage Provider and Highly Commended as Best Service from a British Bank at the Business Moneyfacts Awards 2017
  • Maintained focus on being securely managed, with credit performance stable and well within risk appetite

Phillip Monks OBE, Chief Executive Officer, commented:

"Aldermore has made an excellent start to the year, with continued strong progress on our strategic priorities and financial performance ahead of our expectations.

"New lending to British SMEs, homeowners and landlords has driven loan book growth of over £450m to £7.9bn in the first three months of 2017. We saw strong growth in Asset Finance and, as expected, delivered particularly significant growth in Buy-to-Let, as we converted the strong pipeline of applicants with which we closed 2016. Subsequent to this active period and regulatory changes to affordability tests for buy-to-let mortgages, we continue to anticipate a lower level of growth for the second quarter of 2017 while remaining on track to deliver loan growth in our guided range of 10 - 15% for the full year.

"We have continued to grow our dynamic deposit franchise, providing accounts to individuals, SMEs and larger corporates. We have also increased our use of the Bank of England’s Term Funding Scheme, with the amount drawn now exceeding £750m. "We've made a strong start to 2017 and remain on track to deliver the financial guidance outlined in March, as we continue to provide Banking as it should be for our customers and strong, sustainable returns for our shareholders."

(1) Fully loaded CRDIV CET1 as at 31 March 2017 includes Q1 2017 profits and the annual update to operational risk charge under the Basic Indicator Approach
(2) Outstanding number of shares: 344.9m (end 2016: 344.7m)





Martin Adams

Holly Marshall

Tom Baldock – Lansons PR

Tel: +44 (0) 20 8185 3108

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Ryan Jones

Andy Homer


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Notes to Editors:

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

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