Customer focus drives record profitability

POSTED: 19th March 2018
IN: Newsroom

Unaudited interim results for 12 months to 31 December 2017

Double digit increase in profitability drives a high-teens underlying return on equity1

  • Underlying profit before tax¹ up 20% to £160m (2016: £133m)
  • Underlying return on equity¹ of 18.5% (2016: 18.0%)
  • Statutory profit before tax increased by 10% to £141m (2016: £129m)
  • Statutory return on equity of 15.5% (2016: 17.2%)

Delivered another year of strong financial and operational performance

  • Net interest margin maintained at 3.5% in line with guidance (2016: 3.5%)
  • Underlying cost/income ratio¹ reflects continued investment at 45% (2016: 45%)
  • Statutory cost/income ratio including FirstRand transaction-related costs of 51% (2016: 46%)
  • Excellent cost of risk at 15bps (2016: 23bps) reflects continued benign credit environment

Mid-teens growth in lending supported by proven deposit-raising capability

  • Net loan growth of 15% to £8.6bn (31 December 2016: £7.5bn)
  • Diversified portfolio with 17% growth in Retail2 to £5.7bn and 9% in Business Finance2 to £2.9bn
  • Organic engine again delivers £3.2bn of origination within existing risk appetite (2016: £3.2bn)
  • Deposit growth of 6% to £7.1bn (31 December 2016: £6.7bn)

Exceeded CET1 ratio target of “above 12% by end of 2017”

  • Underlying CET11 ratio of 12.5% and underlying total capital ratio1 of 15.5%
  • CET1 capital ratio of 12.2% and total capital ratio of 15.2% (31 December 2016: 11.5% and 15.6%)

Enabling our customers to seize opportunities in their personal and commercial lives       

  • 91% of customers who reviewed Aldermore online would recommend us to family and friends
  • Investment in SME Broker AFS, demonstrating our commitment to the broker market and providing strategic opportunities to enhance returns
  • “We Back You” campaign highlights our continuing focus on expert and dynamic service as well as our enhanced proposition to intermediaries  
  • Awards in the year include ‘Best Cash ISA Provider’ (Moneynet), ‘Best Business Savings Bank Account’ (, ‘Best Saving Product – Aldermore Fixed Rate Accounts’ (Online Personal Wealth)

Phillip Monks OBE, Chief Executive Officer, commented: “During 2017, Aldermore continued to support more customers across Britain enabling them to seize opportunities and realise their ambitions, whether that’s growing their business, buying a home or buy-to-let property or securing a competitive return on their hard earned savings. We have continued to focus on customers as individuals, going beyond the one-size fits all approach in carefully selected market segments where we have real expertise and can offer superior levels of service, whilst also maintaining a robust approach to risk management. This approach has driven strong customer growth since we were founded in 2009, ultimately enabling us to record an underlying profit before tax1 of £160m in 2017, an increase of 20% compared with the prior year.

“2017 was a landmark year for Aldermore, as our success attracted a takeover approach from South Africa’s FirstRand Group. Now that the transaction has completed, we are excited to be working with our new parent company and exploring the opportunities to further accelerate the delivery of our strategy. Our vision of providing ‘banking as it should be’ will not change, but with the backing of FirstRand our ambition will only grow and we aim to further support businesses and individuals with enhanced digital services and a broader range of straightforward propositions. We look forward to 2018 and beyond with great confidence as the next chapter of the Aldermore story begins.”

Reconciliation of statutory to underlying profit before tax


 12 months to      31 December


12 months to  31 December 2016

Statutory profit before tax



FirstRand transaction-related costs



Goodwill impairment



Underlying profit before tax






Holly Marshall, Director of Corporate Affairs

Tel: +44 (0) 20 3553 4218

Andy Homer, Head of External Communications 

Tel: +44 (0) 20 3553 4244

Claire Cordell, Director of Finance

Tel: +44 (0)7867 454167



Laura Hastings

Tel: +44 (0)7768 790752

Important disclaimer

This document contains certain forward-looking statements with respect to the business, strategy and plans of Aldermore Group PLC (“Aldermore”) and its current goals and expectations relating to its future financial condition and performance. Such forward-looking statements include, without limitation, those preceded by, followed by or that include the words "targets", "believes", "estimates", "expects", "aims", "intends", "will", "may", "anticipates", "projects", "plans", "forecasts", "would", "could", "should" or similar expressions or negatives thereof. Statements that are not historical facts, including statements about Aldermore’s, its directors’ and/or management’s beliefs and expectations, are forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend upon circumstances that will or may occur in the future. Factors that could cause actual business, strategy, plans and/or results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements made by Aldermore or on its behalf include, but are not limited to: general economic and business conditions in the UK and internationally; market related trends and developments; fluctuations in exchange rates, stock markets, inflation, deflation, interest rates and currencies; policies of the Bank of England, the European Central Bank and other G8 central banks; the ability to access sufficient sources of capital, liquidity and funding when required; changes to Aldermore’s credit ratings; the ability to derive cost savings; changing demographic developments, and changing customer behaviour, including consumer spending, saving and borrowing habits; changes in customer preferences; changes to borrower or counterparty credit quality; instability in the global financial markets, including Eurozone instability, the potential for countries to exit the European Union (the “EU”) or the Eurozone, and the impact of any sovereign credit rating downgrade or other sovereign financial issues; technological changes and risks to cyber security; natural and other disasters, adverse weather and similar contingencies outside Aldermore’s control; inadequate or failed internal or external processes, people and systems; terrorist acts and other acts of war or hostility and responses to those acts; geopolitical, pandemic or other such events; changes in laws, regulations, taxation, accounting standards or practices, including as a result of an exit by the UK from the EU; regulatory capital or liquidity requirements and similar contingencies outside Aldermore’s control; the policies and actions of governmental or regulatory authorities in the UK, the EU or elsewhere including the implementation and interpretation of key legislation and regulation; the ability to attract and retain senior management and other employees; the extent of any future impairment charges or write-downs caused by, but not limited to, depressed asset valuations, market disruptions and illiquid markets; market relating trends and developments; exposure to regulatory scrutiny, legal proceedings, regulatory investigations or complaints; changes in competition and pricing environments; the inability to hedge certain risks economically; the adequacy of loss reserves; the actions of competitors, including non-bank financial services and lending companies; and the success of Aldermore in managing the risks of the foregoing.

Any forward-looking statements made in this document speak only as of the date they are made and it should not be assumed that they have been revised or updated in the light of new information of future events. Except as required by the Prudential Regulation Authority, the Financial Conduct Authority, the London Stock Exchange PLC or applicable law, Aldermore expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this document to reflect any change in Aldermore’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. The information, statements and opinions contained in this document and subsequent discussion do not constitute a public offer under any applicable law or an offer to sell any securities or financial instruments or any advice or recommendation with respect to such securities or financial instruments.


Aldermore Group PLC is a specialist bank offering straightforward products to Small and Medium-sized Enterprises (SMEs), homeowners, landlords and individuals.

Aldermore has no branch network but serves customers and intermediary partners online, by phone and face to face through its network of regional offices located around the UK. Building on its core values of being reliable, expert, dynamic and straightforward, Aldermore aims to deliver banking as it should be.

Established in 2009, Aldermore has grown significantly. At the end of December 2017, lending to customers stood at £8.6 billion. In March 2018, Aldermore became part of FirstRand Group, one of South Africa’s largest financial services institutions.

For more information, please visit  

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Aldermore Bank PLC is an operating entity of Aldermore Group PLC.

Aldermore Bank PLC is regulated by the Prudential Regulation Authority and the Financial Conduct Authority and is registered under the Financial Services Compensation Scheme.

  1. Underlying basis excludes £18.5m (pre-tax) and £17.8m (post-tax) of FirstRand transaction-related costs in 2017 and goodwill impairment of £4.1m (pre-tax and post-tax) in 2016
  2. Business Finance includes Asset Finance, Invoice Finance, Commercial Mortgages and Property Development; Retail includes Buy-to-Let and Residential Owner-Occupied Mortgages

All amounts related to the 12 months ended 31 December 2017 are unaudited

As a result of changing its year end to 30 June, to align with that of the FirstRand Group, Aldermore Group PLC will now prepare 18 month financial statements to 30 June 2018




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