Aldermore has seen a 45% increase in underlying pre-tax profit in the first half of 2016, according to its results.

The challenger bank achieved £63m (€73.3m) in H1 2016, up from £44m (€51.2m) at the same point in 2015.

Reported profit before tax also rose, up 50% to £59m (€68.6m) from the £40m (€46.5m) achieved in the first half of 2015.

Aldermore saw decreasing returns on equity however, as underlying was 18.0% versus 18.6% in H1 2015, with reported returns on equity falling 0.5% to 16.3%. Earnings per share grew by 17% to 10.3p.

The loan portfolio experienced growth, with loan origination up 26% to £1.5bn (€1.7bn) from H1 2015, and net loans up 11% to £6.8bn (€7.9bn) from 31 December 2015.

Though Aldermore’s capital ratios fell, with total capital ratios down 1.1% and CET1 down 0.8%, both compared to 31 December 2015, the capital position remained in line with management expectations.

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By GlobalData

Phillip Monks, chief executive officer, said: “It has been another strong six months of operational and financial performance,”

“We have also driven another significant increase in profits…a 45% increase in the Group’s underlying profit before tax to £63m for the first six months.”

Monks stated that though the effects of Brexit may affect the economic environment, Aldermore remained positive.

Monks added: “Following the EU Referendum, we all face a period of heightened political and economic uncertainty.

“We remain confident that we will successfully navigate the challenges ahead as well as take advantage of the opportunities that change may bring.”
 

New commercial director

Aldermore has appointed Lee Rhodes commercial director in wholesale and structured asset finance.

Rhodes joined Aldermore in 2014 as head of wholesale, and previously worked at ING Lease in the financial products team for 10 years.

He has also worked for Investec and Dresdner Kleinwort Wasserstein. In his new role, Rhodes will report to group managing director for business finance, Carl D’Ammassa.

Rhodes said: “I’m keen to build on this success in my new role and look forward to continuing our efforts to grow and develop our support for Britain’s SMEs.”

D’Ammassa said: “Since joining Aldermore, Lee has led the wholesale team to ever greater success. I’d like to take this opportunity to congratulate him on his new role, which is well deserved.”