Loan book grows at an eye-catching rate
Non-bank lender Together Financial Services has reported strong performance in the final quarter of 2022, growing its loan book despite continued uncertainty in the UK economy.
Group net loan book grew by 33.3%, to £5.9 billion, compared to the same period of the previous year, while average monthly lending went up by 6.3% to £212.5 million.
However, underlying profit before tax was down 40% to £25.8 million primarily due to higher impairment charges, which increased from the previous quarter at 1.85%.
The specialist lender’s weighted average origination loan-to-values (LTVs) was at 60.8%, with weighted average indexed LTV remaining at a low 53.4%.
Together, in its financial results announcement, said it also further enhanced customer experience by redesigning and relaunching its website, delivering a digital portal into alpha testing, and improving document management, collections, and call handling infrastructure. It also progressed with embedding its new ‘ABS Suite’ securitisation platform and implementing agile change practices.
Together added further strength and diversity to its funding, supporting future growth, with the successful launch of a new £467-million warehouse facility for first charge owner-occupied and buy-to-let mortgages. As of the end of 2022, the group had £1.3 billion facility headroom.
“Together delivered another robust performance in the period, against a backdrop of extreme macroeconomic uncertainty, growing the loan book to £5.9 billion while controlling origination volumes, increasing rates and maintaining prudent LTVs,” Gerald Grimes (pictured), group CEO designate of Together, said.
“We continued to deliver our strategic change agenda during the quarter, making further incremental progress on delivering the right experience for our customers and creating a more agile, efficient, and scalable platform. We also rolled out new training programs to support growth and performance for all of our colleagues and made good progress against our sustainability targets and measures.”
Grimes noted that while inflation has started to show signs of trending lower and the pace of interest rate rises has slowed, some economists are forecasting the UK economy could enter recession during 2023.
“This continued uncertainty may result in increasing numbers of people looking to specialist lenders for support,” he added. “With a clear purpose, a proven and well-funded business model, and a successful multi-cycle track record, we believe Together is well placed to help many more customers realise their ambitions.”
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