Aldermore Group has posted a 14% growth in profit before tax to £119.4m (H1 2024: £104.6m), reflecting a robust trading performance, careful cost management and a lower impairment charge. The Group’s targeted approach to portfolio growth, prioritising sub-segments of the market which offer attractive through-the-cycle returns, has enabled it to largely offset pressure on revenue as a result of falling interest rates. Strong cost discipline has enabled the Group to continue to invest in its operating platforms and propositions despite inflationary headwinds.
The Group enters 2025 well-positioned to drive continued portfolio growth and repay its remaining TFSME1 funding (H1 2025: £465m; H1 2024: £1,065m), underpinned by a strong pipeline of new business, robust capital position and stable funding base, with a CET1 ratio2 of 16.2% and a liquidity coverage ratio of 204%.
Steven Cooper, CEO of Aldermore Group said:
“We’re pleased to have delivered another strong period of performance, driven by healthy underlying trading, and prudent management of our costs. We continue to focus on building our resilience and ability to navigate a still-challenging economic environment, with ongoing inflationary pressures. Although interest rates may decline further this year, they remain elevated, and we’re proud to have grown our lending to continue to support our customers, helping empower them to live their lives and successfully build their businesses.
“This growth is underpinned by our strategic focus on delivering long-term value for our customers and shareholder, leaving us well placed for the year ahead and for the longer-term. Our recent first-time Baa2 long-term issuer rating from Moody’s recognises both the Group’s financial strength and the credibility of its strategic plan.”
|
Financial Performance (£million) |
H1 2025 |
H2 2024 |
H1 2024 |
Change vs. | |
|---|---|---|---|---|---|
|
H2 2024 |
H1 2024 |
||||
|
Income Statement |
|
|
|
|
|
|
Net interest income |
297.1 |
303.0 |
301.3 |
(2%) |
(1%) |
|
Other operating (expense) / income |
(1.3) |
(11.5) |
(7.0) |
(89%) |
(81%) |
|
Total income |
295.8 |
291.5 |
294.2 |
1% |
1% |
|
Operating expenses |
(165.2) |
(186.5) |
(164.5) |
(11%) |
0% |
|
Impairment (losses) / releases |
(11.2) |
43.4 |
(25.1) |
(126%) |
(55%) |
|
Profit before tax |
119.4 |
148.5 |
104.6 |
(20%) |
14% |
|
|
|
|
|
|
|
|
Key Performance Indicators |
|||||
|
Net interest margin (%) |
3.81% |
4.02% |
3.99% |
(0.21%) |
(0.18%) |
|
Cost / income ratio (%) |
55.8% |
64.0% |
55.9% |
(8.1%) |
(0.1%) |
|
Cost of risk (bps) |
14bps |
(56)bps |
33bps |
71bps |
(18)bps |
|
Return on equity (%) |
10.0% |
13.9% |
9.6% |
(3.9%) |
0.4% |
|
Group Balance Sheet (£million) |
Dec 2024 |
Jun 2024 |
Dec 2023 |
Change vs. | |
|---|---|---|---|---|---|
|
Jun 2024 |
Dec 2023 |
||||
|
Customer lending3 balances |
15,711 |
15,337 |
14,983 |
2% |
5% |
|
Customer deposit balances |
16,618 |
16,307 |
15,892 |
2% |
5% |
|
Group Capital and Liquidity (%) |
Dec 2024 |
Jun 2024 |
Dec 2023 |
Change vs. | |
|---|---|---|---|---|---|
|
Jun 2024 |
Dec 2023 |
||||
|
CET1 ratio2 |
16.2% |
15.9% |
14.9% |
0.3% |
1.3% |
|
Total capital ratio2 |
17.8% |
18.4% |
17.5% |
(0.6%) |
0.3% |
|
Liquidity coverage ratio |
204% |
241% |
248% |
(37%) |
(44%) |
FCA Motor Finance Commission Review
-ENDS-
Notes to Editors
1 ’TFSME’ refers to Term Funding Scheme with additional incentives for SMEs (TFSME)
2 CET1 and total capital ratio are presented on an IFRS9 transitional basis inclusive of unaudited profits for the six months to December 2024
3 Customer lending balances shown net of impairment
4 The relevant disclosure can be found within the Contingencies and Commitments note included within the FirstRand analysis of financial results – December 2024, accessible via the link above
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