Customer lending hits £15.3 billion
Aldermore Group has reported a 14% increase in pre-tax profit, rising to £253.1 million for the year, up from £222.5 million in the previous financial year.
The group attributed the growth to a strategic focus on higher-returning segments and a reduction in impairment charges, despite ongoing margin pressures in the market.
Total customer lending rose by 1%, reaching £15.3 billion, compared to £15.17 billion in the previous financial year, while net interest income fell 3% to £604.3 million, reflecting the impact of subdued lending conditions and market-wide pricing pressures. The group’s net interest margin (NIM) dropped by seven basis points to 4%.
Aldermore recognised an impairment release of £18.3 million, a significant improvement from the £113.3 million charge in FY2023. The decrease was driven by a more stable macroeconomic outlook, allowing the partial release of cost-of-living provisions and reductions in provisions linked to the NOSIA remediation programme. The group’s impairment coverage ratio remained strong at 1.93%, down slightly from 2.06% the previous year.
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“Aldermore has had a strong year, despite a challenging economic backdrop,” said Steven Cooper (pictured), chief executive of Aldermore Group. “With interest rates remaining high over the period, we are pleased to have achieved positive lending growth in a more subdued market, by focusing on higher returning, more specialised segments in which we retain a significant advantage.
“While market headwinds have begun to abate, with slowing inflation and the first interest rate cut in four years, we remain focused on ensuring we support our customers following one of the largest increases in the cost of living in a generation.
“Our recognition of the more challenging environment meant we exercised careful operational cost management, while continuing to invest in improving our customer and colleague experience. In addition, we have also benefitted from a lower impairment charge, reflecting a more stable macroeconomic outlook and progress on remediation activity, all while ensuring our capital and liquidity positions remain strong.”
Looking ahead, Cooper expressed optimism, citing signs of a normalising market and Aldermore’s strong foundation for future growth.
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