10th Nov 2016 08:01
LONDON (Alliance News) - Specialist lender Aldermore Group PLC said Thursday that its capital position has improved in the third quarter and that its levels of new lending have also increased.
Aldermore reported that over the nine months to September 30 its net loans increased by 15% to GBP7.1 billion, from GBP6.1 billion at the end of 2015. Aldermore said that the growth was driven by higher levels of new lending, increasing 20% to GBP2.3 billion from GBP1.9 billion in the same period the year before.
The challenger bank said its new lending to mortgage customers was up 24% in the period at GBP1.5 billion for the nine month period from GBP1.2 billion the year prior. New lending to business finance customers was up 13% to GBP800,000 from GBP700,000 year on year.
Aldermore noted that its net interest margin has remained stable at an undisclosed percentage in the quarter, in-line with its expectations. However, the bank's Tier 1 capital ratio, a measure of financial resilience, increased by roughly 0.4 percentage points to 11.5% during the third quarter. Aldermore said the rise was driven mostly by organic capital generation and that it has reached its aim of "capital self-sufficiency" before the end of 2016.
"While the economic and regulatory environment continues to evolve, we have seen no changes in customer demand, our pipeline remains strong and our credit performance robust," said Philip Monks, chief executive officer.
"New lending has been funded through the growth of our deposit franchises as well as the use of government funding schemes, including the Bank of England's newly launched TFS which we began to utilise in September," added Monks.
By Adam Clark; [email protected]
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