Profit rises and funding capacity expands
Non-bank property lender Together has reported robust financial results for the quarter ending December 31, 2024, highlighting significant loan book growth and steady profitability.
The group’s net loan book reached a record £7.7 billion, reflecting a 13.2% increase from £6.8 billion in the previous quarter and a 1.8% rise from £7.6 billion in the first quarter of the financial year. The average monthly lending rose to £283.2 million, marking a 21.6% year-on-year increase.
Net interest income climbed by 12.6% compared to the same period in 2023, supported by a net interest margin of 5.4%. Underlying profit before tax rose 14.8% to £55.7 million, while cash receipts grew 29.8% to £913.4 million.
“I am pleased to report another strong performance during the quarter, reflecting the unique strengths of Together,” said Richard Rowntree (pictured), who joined as group chief executive officer last year.
“Since joining in November, I have been impressed by the commitment and dedication of the team and everything I have seen has confirmed what attracted me to this market leading business.”
The group strengthened its funding position by expanding its LABS bridging facility to £1 billion in November. In January 2025, Together restructured its £1.25 billion CABS2 warehouse into two revolving facilities — £1.2 billion KABS and £387 million WABS — to support its first and second charge RMBS programmes. Earlier this month, the lender completed its first RMBS issuance of 2025, raising £276.8 million through its TABS 13 transaction.
Together maintained conservative lending standards, with a weighted average origination loan-to-value (LTV) ratio of 59.8% and an indexed LTV of 55.2%. The group acknowledged a slight increase in arrears in some loan segments; however, it noted that overall arrears levels were stabilising across most products.
The annualised cost of risk rose marginally to 0.83% from 0.79% in the previous quarter. Despite this, the lender’s underlying cost-to-income ratio remained low at 32.2%.
Rowntree expressed optimism for the year ahead, citing an improving UK economic outlook driven by increased consumer and government spending and potential interest rate reductions.
“With long-term structural trends including changing employment patterns, a rise in multiple incomes and a continued lack of funding for SMEs supporting an increase in customers looking to specialist lenders for solutions, we will continue to be there to help people realise their ambitions as we have for the last 50 years,” he said.
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