TIDMALD
RNS Number : 8018O
Aldermore Group PLC
10 November 2016
10 November 2016
Aldermore Group PLC - Interim Management Statement Q3 2016
(9 months from 1 January 2016 to 30 September 2016)
Continuing growth in lending and capital generation
Profitable growth with GBP2.3bn in originations for 9M 2016
-- Strong organic growth continues, with net loans up 15% to GBP7.1bn (end 2015: GBP6.1bn)
-- Growth driven through greater levels of new lending, up 20%
to GBP2.3bn YTD (9M 2015: GBP1.9bn) as more British SMEs,
homeowners and landlords choose Aldermore to serve their needs:
- New lending to Business Finance customers up 13% to GBP0.8bn YTD (9M 2015: GBP0.7bn)
- New lending to Mortgage customers up 24% to GBP1.5bn YTD (9M 2015: GBP1.2bn)
-- Net interest margin stable in the quarter and in-line with management expectations
Significant capital growth in the third quarter
-- CET1 capital ratio(1) grew by c40bps to 11.5% in Q3, driven
by c30bps of organic capital generation and an increase in the
value of assets held for liquidity purposes
-- Pro-forma total capital ratio(2) rose to 15.7% (end Q2: 14.0%)
-- Tangible book value per share(3) increased by 6% to 146.0p (end Q2: 137.1p)
Further strategic and financial progress
-- The first bank to utilise the Term Funding Scheme (TFS) in Q3
-- Successfully issued GBP60m of Tier 2 notes in October at a
coupon of 8.5%; significantly below the cost of our existing Tier 2
issuance(4)
-- Voted Leasing & Asset Finance Provider, Most Supportive
Lender, and Development Funder of the Year in the NACFB awards.
Phillip Monks, CEO, commented:
"I am delighted that Aldermore continues to deliver on our
strategy with another strong quarter.
"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. As a result, in
the first nine months of 2016 we have grown the loan book by over
GBP900m balanced across SME and mortgage customers, whilst
maintaining our strict controls on underwriting standards.
"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.
"I am also pleased to report that strong organic profit
generation has driven our CET1 capital ratio to 11.5% in the
quarter, delivering on our IPO commitment of capital
self-sufficiency by the end of 2016.
"We look forward to updating you on our progress and outlook at
our 2016 full year results in March 2017."
(1) Fully loaded CRDIV CET1 as at 30 September 2016 includes Q3
2016 profits. c.30bps of capital generation represents retained
profit in excess of RWA growth.
(2) Pro-forma total capital ratio includes GBP60m of Tier 2
issued in October and Q3 2016 profits. Excluding the GBP60m Tier 2,
the total capital ratio was 14.3%
(3) Outstanding number of shares: 344.7m (Q2: 344.7m)
(4) Previous Tier 2 issuance of GBP40m with a Coupon of 12.875%
issued at a discount with effective interest cost through the
P&L at 18.597%
Enquiries:
Analysts Media
Martin Adams Holly Marshall
Tel: +44 (0) 20 8185 3108 Tel: +44 (0) 20 3553 4828
Ryan Jones Andy Homer
Tel: +44 (0) 20 8185 3146 Tel: +44 (0) 20 3553 4244
FTI Consulting
Neil Doyle
Mobile: +44 (0) 7771 978 220
Important disclaimer
This document contains certain forward-looking statements with
respect to the business, strategy and plans of Aldermore Group PLC
("Aldermore") and its current goals and expectations relating to
its future financial condition and performance. Such
forward-looking statements include, without limitation, those
preceded by, followed by or that include the words "targets",
"believes", "estimates", "expects", "aims", "intends", "will",
"may", "anticipates", "projects", "plans", "forecasts", "would",
"could", "should" or similar expressions or negatives thereof.
Statements that are not historical facts, including statements
about Aldermore's, its directors' and/or management's beliefs and
expectations, are forward-looking statements. By their nature,
forward-looking statements involve risk and uncertainty because
they relate to events and depend upon circumstances that will or
may occur in the future. Factors that could cause actual business,
strategy, plans and/or results to differ materially from the plans,
objectives, expectations, estimates and intentions expressed in
such forward-looking statements made by Aldermore or on its behalf
include, but are not limited to: general economic and business
conditions in the UK and internationally; market related trends and
developments; fluctuations in exchange rates, stock markets,
inflation, deflation, interest rates and currencies; policies of
the Bank of England, the European Central Bank and other G8 central
banks; the ability to access sufficient sources of capital,
liquidity and funding when required; changes to Aldermore's credit
ratings; the ability to derive cost savings; changing demographic
developments, and changing customer behaviour, including consumer
spending, saving and borrowing habits; changes in customer
preferences; changes to borrower or counterparty credit quality;
instability in the global financial markets, including Eurozone
instability, the potential for countries to exit the European Union
(the "EU") or the Eurozone, and the impact of any sovereign credit
rating downgrade or other sovereign financial issues; technological
changes and risks to cyber security; natural and other disasters,
adverse weather and similar contingencies outside Aldermore's
control; inadequate or failed internal or external processes,
people and systems; terrorist acts and other acts of war or
hostility and responses to those acts; geopolitical, pandemic or
other such events; changes in laws, regulations, taxation,
accounting standards or practices, including as a result of an exit
by the UK from the EU; regulatory capital or liquidity requirements
and similar contingencies outside Aldermore's control; the policies
and actions of governmental or regulatory authorities in the UK,
the EU or elsewhere including the implementation and interpretation
of key legislation and regulation; the ability to attract and
retain senior management and other employees; the extent of any
future impairment charges or write-downs caused by, but not limited
to, depressed asset valuations, market disruptions and illiquid
markets; market relating trends and developments; exposure to
regulatory scrutiny, legal proceedings, regulatory investigations
or complaints; changes in competition and pricing environments; the
inability to hedge certain risks economically; the adequacy of loss
reserves; the actions of competitors, including non-bank financial
services and lending companies; and the success of Aldermore in
managing the risks of the foregoing.
Any forward-looking statements made in this document speak only
as of the date they are made and it should not be assumed that they
have been revised or updated in the light of new information of
future events. Except as required by the Prudential Regulation
Authority, the Financial Conduct Authority, the London Stock
Exchange PLC or applicable law, Aldermore expressly disclaims any
obligation or undertaking to release publicly any updates or
revisions to any forward-looking statements contained in this
document to reflect any change in Aldermore's expectations with
regard thereto or any change in events, conditions or circumstances
on which any such statement is based. The information, statements
and opinions contained in this document and subsequent discussion
do not constitute a public offer under any applicable law or an
offer to sell any securities or financial instruments or any advice
or recommendation with respect to such securities or financial
instruments.
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 September 2016, lending to
customers stood at GBP7.1 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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