Aldermore Group has reported a 24% year-on-year fall in profit after tax, posting £141.1m ($190.8m) for the financial year ending 30 June 2025.
The downturn in profits was primarily due to a £60.6m charge stemming from a review of historical motor finance commissions, a stark increase from the £18.1m charge recorded in FY2024.
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Additionally, the non-recurrence of last year’s impairment provision releases related to CCA remediation activities in the motor division also contributed to the lower profits.
Despite the profit decrease, the group’s total income showed a marginal increase, rising by 2% to £600.4m from £585.8m in the prior year.
Aldermore Group CEO Steven Cooper said: “Aldermore has had a robust year, delivering resilient profitability and lending balance growth across all of our core lending divisions, as well as significant net inflows into our savings products. We have also maintained a strong capital and liquidity position, which demonstrates the underlying strength of the business.
“We welcomed the clarity brought by the decision of the Supreme Court relating to the payment of historical motor finance commissions, and we expect trading to remain healthy as the economic backdrop improves. Our performance was also bolstered by strong cost management as inflationary pressures remained, despite continued investment in our proposition and our technology.
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By GlobalData“We will remain focused on this disciplined approach to costs and capital allocation, to ensure Aldermore’s long-term resilience and growth.”
Customer lending rose by 8% over the 12 months, standing at £16.60bn as of 30 June 2025, up from £15.33bn the previous year.
The growth was spread across all the group’s lending segments, which include asset finance, invoice finance and property finance.
Customer deposits saw a 5% increase, totalling £17.04bn, up from £16.3bn the previous year, driven by growth in personal savings and corporate deposits.
The group maintained its capital ratios, with the CET1 ratio improving to 16.1% before a £125m dividend, compared to 15.9% the previous year.
After accounting for the expected dividend, the CET1 ratio stood at 14.9%, which remains above its medium-term target range of 13% to 14%.
