Q1 2016 Update

12 May 2016

Aldermore Group PLC

Q1 2016: A strong start to the year

Excellent loan origination; up by 43% to £814m (Q1 2015: £568m)

· Business Finance origination up by 18% to £272m (Q1 2015: £230m)

· Mortgage origination up by 60% to £542m (Q1 2015: £338m)

o Buy-to-Let origination very strong at £327m, up by 144% (Q1 2015: £134m)

· Net loans to customers up by £0.4bn or 6% to £6.5bn (31 December 2015: £6.1bn)

· Now supporting c74,000 lending customers (31 December 2015: c71,000)

Lending growth funded by deposits

· Total deposits up by 7% to £6.2bn (31 December 2015: £5.7bn)

· Deposit customer numbers up by 8% to c133,000 (31 December 2015: c124,000)

Strong capital position maintained

· CET1 capital ratio(1) of 11.5% (31 December 2015: 11.8%)

Phillip Monks, CEO, commented:

"We have made an excellent start to the year with our best ever quarter of origination as we delivered double digit growth in new lending in both our Business Finance and Mortgages divisions. We took advantage of the anticipated extra demand for buy-to-let mortgages, ahead of the introduction of the additional stamp duty from 1 April 2016, and more than doubled our buy-to-let origination compared with the first quarter of 2015.

"As a result, we have increased net lending by 6% since the start of the year with deposits continuing to grow to support our lending activity.

"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. 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."

(1) Fully loaded CRDIV CET1 ratio as at 31 March 2016 includes Q1 2016 profits

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Important disclaimer

Visit www.aldermore.co.uk for more information. This press release may contain 'forward-looking statements' with respect to certain of the Group's plans and its current goals and expectations relating to its future financial condition, performance, results, strategic initiatives and objectives. Generally, words such as "may", "could", "will", "expect", "intend", "estimate", "anticipate", "aim", "outlook", "believe", "plan", "seek", "continue" or similar expressions identify forward-looking statements. These forward-looking statements are not guarantees of future performance. By their nature, all forward-looking statements are inherently predictive and speculative and involve risk and uncertainty because they relate to future events and circumstances which are beyond the Group's control, including amongst other things, UK economic business conditions, market-related risks such as fluctuations in interest rates, the policies and actions of regulatory authorities, the impact of competition, inflation, deflation, the timing impact and other uncertainties of future acquisitions or combinations within relevant industries, as well as the impact of tax and other legislation or regulations in the jurisdictions in which the Group operates. As a result, the Group's actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in the Group's forward-looking statements. Forward-looking statements in this press release are current only as of the date on which such statements are made. The Group undertakes no obligation to update any forward-looking statements, save in respect of any requirement under applicable law or regulation. Nothing in this press release shall be construed as a profit forecast.

Aldermore

Aldermore Group PLC is a specialist lender and savings bank offering straightforward products to Small and Medium-sized Enterprises (SMEs), homebuyers and individuals, who we believe are often under- or poorly served by the wider market. Aldermore has no branch network but serves customers and intermediary partners online, by phone and face to face through its network of regional offices located around the UK. Building on its core values of being reliable, expert, dynamic and straightforward, Aldermore aims to deliver banking as it should be. Established in 2009, Aldermore has grown significantly. At the end of March 2016, lending to customers stood at £6.5 billion and customer deposits totalled £6.2 billion. For more information, please visit www.aldermore.co.uk.

Aldermore Bank PLC is an operating entity of Aldermore Group PLC. In March 2015, Aldermore Group PLC's shares (ALD.L) listed on the Main Market of the London Stock Exchange. Aldermore Bank PLC is regulated by the Prudential Regulation Authority and the Financial Conduct Authority and is registered under the Financial Services Compensation Scheme.