UK-based Aldermore Group has reported operating profit before tax of £132.8m for the first half of fiscal year 2024, an increase of 13% compared with £117m a year ago.
For the period ended 31 December 2023, the group’s net lending fell 3% to £15bn from £15.5bn in the first half of fiscal year 2023.
Go deeper with GlobalData
Despite this, the group said it managed to achieve the desired growth in lending for asset finance and buy-to-let.
Total income for the period was £223.7m, an increase of 3% compared with £217.7m a year earlier.
Led by business and corporate savings, customer deposits rose 4% year-on-year to £15.9bn.
Aldermore Group, which includes Aldermore Bank and MotoNovo Finance, reported a CET1 ratio of 14.9% and a liquidity coverage ratio of 248%.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataAldermore Bank, in particular, saw a rise in operating profit before tax, which rose by 17% to £114.3m over the six months.
MotoNovo Finance registered a marginal dip in profit before tax (excluding derivative loss/gain) for the first half of the fiscal year, which was down by 4% to £18.5m.
This decrease was largely due to balance sheet and net interest margin (NIM) pressures within a subdued used car market, the lender said.
The company noted that it currently serves nearly 800,000 clients.
Aldermore Group CEO Steven Cooper said: “We are pleased with our performance in the half, delivering strong underlying profits supported by increased revenues, a fall in impairments and steady growth in customer deposits despite fierce competition. This has been achieved against a backdrop of difficult economic conditions and a property market which has been at its most subdued in many years.
“Looking ahead, we are optimistic about what the future holds. Our buy-to-let and asset finance businesses have been performing particularly well and with confidence slowly starting to return to the property market, we think we are well placed to take advantage of improving conditions.
“However, there is no room for complacency as economic headwinds may persist in 2024. That is why we continue to maintain a strong and resilient capital and funding position while investing in our people and technology so that we can build great products and services for our customers.”
