14th May 2015 08:42
LONDON (Alliance News) - Aldermore Group PLC is on track to meet its GBP1.4 billion net new lending target in 2015, the bank said on Thursday, as customer deposits rose and its capital ratios improved in the first quarter.
Aldermore, which lends to small and medium sized enterprises, said net lending to customers was up to GBP5.1 billion, from GBP4.8 billion at the end of 2014.
"Organic origination continues to be strong and we granted new loans of GBP568 million in the first three months of 2015. Net lending to customers now exceeds GBP5.1 billion, of which GBP2.4 billion is to SMEs and GBP2.7 billion is to homeowners, demonstrating our ongoing support for these underserved customer groups," Chief Executive Phillip Monks said in a statement.
"We remain on track to deliver our targeted GBP1.4 billion of growth in net lending for 2015 which equates to an expected full year growth rate of around 30%," Monks said.
Customer deposits increased to GBP4.7 billion from GBP4.5 billion over the course of the quarter, driven by growth in deposits from SMEs, which were up by about GBP100 million to GBP1.1 billion in the three-month period.
"Double digit growth in SME deposits provides continued funding diversification as lending remains primarily funded by our dynamic online savings franchise," Monks said.
The company said its capital ratios, measures of financial strength including first-quarter profits, improved in the three months.
Its fully loaded common equity tier one capital ratio increased to 12.3% from 10.4%, while its leverage ratio was up to 7.4% from 6.3% inside the quarter.
Aldermore shares were down 3.2% at 245.98 pence on Thursday morning.
By Samuel Agini; [email protected]; @samuelagini
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