Aldermore Group delivered statutory profit before tax of £111.9m in H1 2023, up 2% on the prior year (H1 2022: £110.1m). The Group continues to deliver growth in lending, improved margins, and a lower cost to income ratio whilst investing for future growth.
|
Financial Performance (£m) |
H1 2023 |
H2 2022 |
H1 2022 |
Change vs. H2 2022 |
Change vs. H1 2022 |
|
Total Income |
316.3 |
304.5 |
259.6 |
4% |
22% |
|
Operating Expenses |
(149.8) |
(163.7) |
(138.3) |
(8)% |
8% |
|
Impairment Losses |
(54.6) |
(46.2) |
(11.2) |
18% |
386% |
|
Statutory Profit before Tax |
111.9 |
94.6 |
110.1 |
18% |
2% |
|
|
|
|
|
|
|
|
Net Interest Margin (%) |
3.92 |
3.98 |
3.59 |
(0.06)% |
0.33% |
|
Return on Equity (%) |
12.2 |
11.1 |
13.9 |
1.1% |
(1.7)% |
|
Cost of Risk |
72bps |
65bps |
16bps |
7bps |
56bps |
|
|
|
|
|
|
|
|
Balance Sheet and Capital (£m) |
Dec 2022 |
Jun 2022 |
Dec 2021 |
Change vs. Jun 2022 |
Change vs. Dec 2021 |
|
Customer Loan Balances |
15,468 |
14,731 |
13,880 |
5% |
11% |
|
Customer Deposit Balances |
15,245 |
14,105 |
13,108 |
8% |
16% |
|
|
|
|
|
|
|
|
Common Equity Tier 1 ratio3 |
14.0% |
14.0% |
14.1% |
- |
(0.1)% |
|
Group Loan to Deposit ratio4 |
101% |
104% |
106% |
(3)% |
(4)% |
Steven Cooper, CEO of Aldermore Group said:
“We’re pleased to announce a robust set of H1 results despite a difficult period for the UK economy, with profits and net lending both increasing and growth across all our business lines. I’ve been encouraged that the strategic refresh we undertook last year is starting to bear fruit and we have seen customer numbers grow to over 800,000, whilst deepening our expertise in markets where we already have a longstanding presence.
“Even though there’s been considerable turmoil in the mortgage market in recent months, we’ve still seen encouraging growth in our Retail Mortgages division, with a particularly strong performance in our specialist buy to let business. We are proud to have launched our new platinum service for brokers which will see us offer the very best support to those who we work most closely with to find the right mortgages for our customers.
“In our Motor business, net lending continues to grow considerably, supported by high demand in the used car market.
“Business Finance lending is growing steadily driven by an increase in average deal sizes and our footprint in new areas, including fleet funding.
“In Savings, total deposits for personal customers surpassed £10bn for the first time and our accounts remain amongst the most competitive in the market and continue to win awards.
“We are acutely aware that high rates of inflation and tough economic conditions have placed significant pressure on many families and businesses. To help with these challenges we’ve been offering extra support to customers and made a special effort to contact those we think are most vulnerable so we can help them navigate through difficult circumstances.
“Despite this we are cautiously optimistic for the future. We’re modernising Aldermore and in recent months we’ve added highly experienced new leaders to our team, bringing new perspectives and expertise to drive our strategy forward. By continuing to invest in both our people and technology, while remaining focussed on providing a service to customers that surpasses that of the high street banks, we can build significant growth in our business for the future.”
**Ends**
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