Aldermore Group has delivered 30% growth in profit before tax to £204.7m (FY2021: £157.8m). The bank is now supporting a record 750,0001 customers which has helped drive 10% growth in net lending at improved margins and at a stable cost of risk.
It comes as a strategic refresh undertaken in recent months to refocus the business’ strength as a specialist lending and savings bank comes into effect, underpinned by disciplined investment in future growth.
| Financial Performance (£million) | FY2022 | FY2021 | Change |
| Total income | 564.1 | 471.6 | 20% |
| Operating expenses | (302.0) | (261.7) | 15% |
| Impairment losses | (57.4) | (52.1) | 10% |
| Profit before tax | 204.7 | 157.8 | 30% |
| Net Interest Margin (%) | 3.8% | 3.4% | 0.4% |
| Return on Equity (%) | 12.5% | 10.9% | 1.6% |
| Cost of Risk | 41bps | 40bps | 1bps |
| Balance Sheet and Capital (£million) | FY2022 | FY2021 | Change |
| Customer loan balances | 14,731 | 13,420 | 10% |
| Customer deposit balances | 14,105 | 12,427 | 14% |
| Common Equity Tier 1 ratio2 (%) | 14.0% | 13.9% | 0.1% |
| Group loan to deposit ratio (%) | 106% | 108% | (2)% |
Steven Cooper, CEO of Aldermore Group said:
“This has been a positive year for Aldermore with significant growth in net lending and profits, resulting in a good performance, despite a challenging economic environment.
“We are pleased to have seen a strong increase in new owner occupied lending as we continue to help more people realise their home ownership dreams. We've seen net loan growth of 15% to businesses over the prior year through new targeted opportunities, customer retention and increased facility utilisation. This has all been underpinned by strong deposit growth in personal and business savings. MotoNovo Finance, our automotive finance business, has had another strong year. We saw lending volumes break through the £2bn barrier for the first time, with net lending increasing by 30 per cent year on year.
“We understand that the cost of living crisis has placed real pressure on people and their families, as well as businesses in recent months. Our strong profitability and capital position mean we’re on hand to support those who are facing difficulty.
“We’ve recently undertaken a strategic refresh of our business, which has reaffirmed our purpose and our credentials as a specialist lending and savings bank and will see the business renew its focus on our longstanding strengths and expertise. We remain committed to being a bank that is there to help those people and businesses whose ambitions haven’t always been supported by the high street lenders.
“There will be a renewed and targeted focus on our property business, which we believe provides opportunity for growth and better returns. We’re already seeing this show some early signs of success with strong net lending in the second half of the financial year. We’re re-committing ourselves to our business customers, continuing our structured and specialist lending to them, while working to build successful, long-lasting relationships with each by meeting their unique needs focussing on specific sectors and segments. Our savings business, which continues to offer award winning products with consistently competitive rates, will remain central to the bank’s funding model and growth plans.
“Despite the ongoing economic uncertainty, the outlook for Aldermore is positive as we invest in our technology and people capabilities to help us build a more efficient bank, which combined with a strong balance sheet, will set us up for future growth.”
**Ends**
1 Customer numbers as at 30 June 2021: 650,000.
2 CET1 ratio is presented on an IFRS9 transitional basis.
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