Profits up as lender hits half a century
Together Financial Services has reported strong financial results for the year ended June 30, 2024, highlighting growth in its loan book, profits, and cash receipts.
The non-bank lender’s average monthly lending increased by 7.1% to £249.6 million, compared to £233.1 million in 2023. The group’s net loan book grew 14.9% to £7.4 billion, up from £6.4 billion the previous year, while weighted average indexed loan-to-value (LTV) remained low at 55.7%.
Net interest income rose 22.7% to £369.3 million, reflecting a net interest margin of 5.4%, slightly up from 5.2% in 2023. The company also saw a 22.8% rise in underlying profit before tax, reaching £200.9 million. Cash receipts grew by 22.7% to £2.7 billion, supported by strong redemptions.
Impairment coverage stood at 1.9%, reflecting ongoing economic pressures, up from 1.7% last year. The annualised cost of risk also increased to 0.79% from 0.73%, driven by a rise in arrears. However, Together’s cost-to-income ratio improved to 30%, down from 31.8%, due to continued cost discipline.
“As we celebrate our 50th anniversary, I am pleased to report that Together had another strong year, growing our loan book to a new high of £7.4 billion while delivering an attractive net interest margin of 5.4% and a 22.8% increase in underlying profit before tax,” said Mike McTighe (pictured), chairman of Together.
“While inflation is now in line with the Bank of England’s target and interest rates are expected to fall gradually, economic growth is forecast to remain modest. Against this backdrop, we expect many more customers will be underserved by mainstream lenders and look to specialists, like Together, for support.”
Looking ahead, the specialist property lender plans to continue supporting its customers and contributing to the UK economy, McTighe added.
For 50 years, Together has been providing underserved customers including the self-employed, those with more complex incomes, in later life or with thin or impaired credit, with a wide range of flexible lending products including short-term finance, auction finance, residential, buy-to-let and commercial mortgages, secured loans and development finance.
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