12th May 2016 07:04
LONDON (Alliance News) - Aldermore Group PLC on Thursday said loan origination surged year-on-year in the first quarter and said it remains confident on meeting its guidance for 2016.
The bank, which lends to small businesses, homeowners and landlords, said loan origination grew 43% year-on-year in the quarter to the end of March to GBP814.0 million from GBP568.0 million.
Business finance origination grew 18% but mortgage origination surged 60%, helped by buy-to-let origination more than doubling at buyers rushed to beat the introduction of a new stamp duty levy on buy-to-let buyers imposed on April 1.
Net loans to customers increased 6.0% to GBP6.5 billion from GBP6.1 billion at the end of December, Aldermore said.
"Market conditions in the first quarter of 2016 remain broadly consistent with those experienced last year, with a relatively benign credit environment and interest rates unchanged," said Chief Executive Phillip Monks.
"We continue to focus on our strategy of supporting UK SMEs, homeowners, landlords and savers and remain confident of delivering on all of the guidance we set out with our recent 2015 full year results, including generating nominal net loan growth in line with recent run rates and strong returns on equity," he added.
Shares in Aldermore were up 2.0% at 188.60 pence Thursday morning, shortly after market open.
By Sam Unsted; [email protected]; @SamUAtAlliance
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