AnaCap Financial Partners’ Aldermore Bank profits up

Aldermore Bank, backed by AnaCap Financial Partners, a specialist European financial services private equity firm, has announced its full year audited results for 2013. The bank announced a 15-fold increase in profits.


Aldermore Financial Results for the Full Year ending 31 December 2013

Financial Highlights:
Profit before tax £22.4 million (2012: £1.5 million[1])
Lending to SMEs +53% to £1.69 billion (2012: £1.10 billion)
Lending to homeowners +76% to £1.68 billion (2012: £957 million)
Total increase in lending +64% to £3.4 billion (2012: £2.1 billion)
Customer deposits +61% to £3.4 billion (2012: £2.1 billion)
Total balance sheet assets +66% to £4.2 billion (2012: £2.5 billion)
Cost/income ratio fell to 67% (2012: 89%)
Total SME and retail customer numbers 136,000 (2012: 99,700)
Return on Equity 10.9% (2012: 0.9%)
Aldermore Bank today announced its full year audited results for 2013. The Bank’s growth and profitability is reflected by strong performance across the business, including significant growth in gross lending, up 64 per cent year-on-year to £3.4 billion, as Aldermore continued to champion SMEs and homeowners in the UK.
The Bank firmly established its profitability in 2013, building on last year’s growth to deliver increased profit before tax of £22.4 million, rising from £1.5 million in 2012.
A number of significant milestones were reached, including the Bank’s balance sheet exceeding £4 billion for the first time, up 66 per cent on 2012 to £4.2 billion. Lending to SMEs increased by 53 per cent to £1.69 billion highlighting the Bank’s commitment to supporting UK businesses. Aldermore also continued to support UK homeowners in 2013, increasing lending by 76% to £1.68 billion.
During 2013 Aldermore made use of the Funding for Lending Scheme (FLS). In October 2013 the Bank announced that it was to enter the second phase of the government’s Help to Buy scheme, and became the first bank to make the scheme available not only to new purchasers but also to customers looking to move further up the housing ladder.
The vast majority of Aldermore’s funding remains deposit led and customers’ deposits rose by 61 per cent to £3.4 billion year on year. During 2013 the Bank acted to further broaden the deposit mix, which includes ISA, Fixed, Easy Access and Notice savings accounts. To achieve further diversification, the Bank developed its SME savings range, with simple and transparent products that offer attractive rates, are easy to open, and offer the flexibility customers demand. This strategy was highly successful, with SME customer balances at year-end totalling £516 million (up over 400 per cent since end 2012). The Bank also launched a pioneering SME deposit account, which allows customers to select the exact maturity date and interest rate to suit their needs. Overall, Aldermore’s loan to deposit ratio was 98 per cent in 2013 (2012: 96 per cent).
Aldermore continued to recruit to deliver growth, recruiting 27 per cent more people in 2013. In addition, Aldermore combines intelligent use of technology with exceptional customer service enabling SMEs to open an account online and be able to deposit funds in less than 15 minutes.
Phillip Monks, CEO, commented:
“2013 was a year of significant growth across all areas of the Bank. Achieving a profit before tax of £22.4 million, we have clearly demonstrated that we are providing banking services which our customers want, while also delivering a sustainable return for our investors.
“Aldermore supports SMEs and homeowners right up and down the country, providing attractive savings products and increasing our lending at a time when many continue to find it difficult to gain access to finance from traditional lenders. We have made a strong start to the year and are on track to achieve further growth by maintaining our focus on delivering exceptional service to our customers, who tell us this is banking as it should be.”
Key Financial Information
The following metrics represent the core key performance indicators for the Bank:

31 December 2013
31 December 2012
Tier 1 capital ratio
Organic loan originations (£m)
Return on equity
Net interest margin
Cost to income ratio
Summary profit and loss account
Summary profit and loss account
2013 (£m)
2012 (£m)
Change (%)
Net interest income
Other income
Total operating income
Administrative expenses
Depreciation and amortisation
Provision for bad and doubtful debts
Provisions for liabilities
Profit before taxation
[1] Restated for a change in accounting policy for IFRIC 21, as explained in Note 1 of the financial statements
For further information about Aldermore, our financial backers and our PR contacts, please review our Notes to Editors page.
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