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Trading statements

Aldermore on track after strong Q1

11 May 2017 09:11

Aldermore Group reports a strong start to the year with continued strong progress on its strategic priorities and financial performance ahead of its expectations.

The group saw strong customer-driven growth in the first quarter with organic new lending of around £1bn.

It said net loans were up 6% at £7.9bn (end 2016: £7.5bn) with growth driven by strong levels of new lending up 17% at £949m (3M 2016: £814m).

Other highlights:

- New lending to business finance customers up 11% at £303m (3M 2016: £272m)

- New lending to mortgage customers up 19% at £646m (3M 2016: £542m)

- Customer deposits increased 5% to £7.0bn (end 2016: £6.7bn)

- Net interest margin stable at 3.5% in the quarter

Chief executive Phillip Monks said: "Aldermore has made an excellent start to the year, with continued strong progress on our strategic priorities and financial performance ahead of our expectations.

"New lending to British SMEs, homeowners and landlords has driven loan book growth of over £450m to £7.9bn in the first three months of 2017.

"We saw strong growth in Asset Finance and, as expected, delivered particularly significant growth in Buy-to-Let, as we converted the strong pipeline of applicants with which we closed 2016.

"Subsequent to this active period and regulatory changes to affordability tests for buy-to-let mortgages, we continue to anticipate a lower level of growth for the second quarter of 2017 while remaining on track to deliver loan growth in our guided range of 10-15% for the full year.

"We have continued to grow our dynamic deposit franchise, providing accounts to individuals, SMEs and larger corporates.

"We have also increased our use of the Bank of England's Term Funding Scheme, with the amount drawn now exceeding £750m.

"We've made a strong start to 2017 and remain on track to deliver the financial guidance outlined in March, as we continue to provide Banking as it should be for our customers and strong, sustainable returns for our shareholders."

At 9:11am: (LON:ALD) Aldermore Group PLC share price was +0.8p at 257.8p

Story provided by StockMarketWire.com

Related Company: ALD

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