Its strategic refresh includes a renewed and targeted focus on its property business
Aldermore Group has achieved 30% growth in profit before tax from £157.8 million to £204.7 million.
Reporting full year results to June 30, 2022, the group - consisting of Aldermore Bank plc and MotoNovo Finance Limited - had its net lending grow by £1.3 billion, or 10%, to £14.7 billion.
Business Finance, which includes asset finance, invoice finance, and SME commercial mortgages, saw net lending growth of £0.5 billion to £3.6 billion as all business lines recovered well post-COVID and pivoted towards larger size deals.
Retail mortgages net lending reduced by £0.1 billion to £7.2 billion, but growth returned in the second half of the year with net loans £0.1 billion higher than December 2021, as redemption levels normalised, and originations increased in both owner-occupied and buy-to-let portfolios.
The bank is also currently supporting a record 750,000 customers which has helped drive the growth in net lending at improved margins and at a stable cost of risk.
“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,” Steven Cooper, chief executive at Aldermore Group, said. “We are pleased to have seen a strong increase in new owner-occupied lending as we continue to help more people realise their homeownership 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.
“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.”
Cooper added that the group has recently undertaken a strategic refresh of its business, which has reaffirmed its purpose and credentials as a specialist lending and savings bank.
“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,” he said. “There will be a renewed and targeted focus on our property business, which we believe provides opportunity for growth and better returns.
“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.”