Loan book grows 14.7% over the year
Non-bank lender Together Financial Services has announced robust financial results for the quarter ending September 30, 2024, highlighting steady loan book growth, strong profitability, and significant cash generation.
The group’s net loan book rose to £7.6 billion, reflecting a 14.7% increase compared to the same quarter last year (£6.6 billion) and a 3% rise from the previous quarter (£7.4 billion). The weighted average indexed loan-to-value (LTV) remained low at 55.6%, underscoring the lender’s conservative risk approach.
Average monthly lending for the quarter totalled £269.3 million, up 20.5% year-on-year, though slightly down by 3.5% from the prior quarter. The group reported interest receivable and similar income of £214.5 million, a 17.3% rise year-on-year and a 3.7% increase from the previous quarter.
Profitability remained strong, with an underlying pre-tax profit of £53.7 million, a 12.6% increase year-on-year and a 1.3% rise from the previous quarter. The lender’s cost-to-income ratio stayed efficient at 30.3%, and cash receipts for the period totalled £787.6 million, up from £723.9 million in the preceding quarter.
“Together delivered another strong performance in the quarter to September 30, growing the loan book to £7.6 billion while the Group remained highly profitable and cash generative,” commented Mike McTighe (pictured), chairman of Together.
“We have also continued to strengthen and enhance our executive team, announcing the appointment of Richard Rowntree as our new CEO and promoting Chris Adams to CFO and John Barker to CEO of our personal finance division.
“While inflation is now close to the Bank of England’s target and interest rates are continuing to reduce gradually, UK economic growth is forecast to remain modest. Against this backdrop and as evidenced by our recent residential property market report, we expect many more customers will be underserved by mainstream lenders and look to specialist lenders, like Together, for support.”
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