Q1 Trading Update

14 May 2015

Aldermore Group PLC

Q1 2015: Continued momentum and a strong start to the year

On track to achieve targeted £1.4bn of net new lending in 2015

· Net lending to customers up by 7% in Q1 to £5.1bn (FY 2014: £4.8bn)

· Organic loan origination of £568m, up by 9% on Q1 2014

· Net interest margin in line with management expectations  

Continued growth in online deposit franchise

· Total customer deposits up by 4% to £4.7bn (FY 2014: £4.5bn)

· Strong growth in SME deposits, up by 10% to £1.1bn (FY 2014: £1.0bn)

IPO successfully completed

· Admitted to the LSE on 13 March 2015, raising £75m of gross primary equity  

Strong capital position in excess of targets

· Fully loaded CRD IV CET1 capital ratio of 12.3% (FY 2014: 10.4%)

· Total capital ratio of 16.4% (FY 2014: 14.8%)

· Leverage ratio of 7.4% (FY 2014: 6.3%)

Phillip Monks, CEO commented:

"It has been an exciting and busy quarter for the Group and our achievements to date give us confidence as we look forward to the rest of this year and beyond.

"Organic origination continues to be strong and we granted new loans of £568 million in the first three months of 2015. Net lending to customers now exceeds £5.1 billion, of which £2.4 billion is to SMEs and £2.7 billion is to homeowners, demonstrating our ongoing support for these underserved customer groups.

"We remain on track to deliver our targeted £1.4 billion of growth in net lending for 2015 which equates to an expected full year growth rate of around 30%.

"Double digit growth in SME deposits provides continued funding diversification as lending remains primarily funded by our dynamic online savings franchise."

Notes to editors:

1. Capital ratios as at 31 March 2015 include Q1 2015 profits

**Ends**

Enquiries:

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 is an SME-focused bank which operates with modern, scalable and legacy-free infrastructure. It offers simple financial products and solutions to meet the needs of disenfranchised and underserved Small and Medium-sized Enterprises (SMEs), homeowners and savers across both their business and personal lives.

Aldermore has no branch network but serves customers and intermediary partners online, by phone and face to face through its network of twelve regional offices located around the UK.

Building on its core values of being reliable, expert, straightforward and dynamic, Aldermore aims to deliver banking as it should be.

Established in 2009, Aldermore has grown significantly and now has more than 850 employees. At the end of March 2015, lending to customers stood at £5.1 billion and customer deposits totalled £4.7 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.