Annual Report 2015

Business overview

Asset Finance

Asset Finance: We support capital investment in business critical assets. Leveraging our depth and breadth of expertise, we finance a wide array of assets such as plant and machinery, commercial vehicles and cars. This flexibility enables us to meet the needs of customers of all sizes across key industries. In addition, we offer wholesale and block discounting facilities to smaller leasing companies and brokerages enabling them to extend credit directly to SMEs.

Invoice Finance

Invoice Finance: We provide working capital solutions for UK SMEs, ranging from vanilla invoice discounting and full service factoring, where we manage the customer’s debt collection on their behalf, to more tailored customer solutions requiring the in-house expertise that Aldermore has developed.

Commercial Mortgages

SME Commercial Mortgages: We offer mortgages to cover the full life cycle from property development through to purchase and refinancing as well as bridging loans. Our SME Commercial Mortgages business focuses on mortgages for shops, warehouses, industrial units and offices distributed through financial intermediaries and directly with customers.

Buy-to-Let Mortgages

Buy-to-Let: We provide a complete Buy-to-Let proposition catering for both individual and corporate landlords, simple to complex properties and from a single property to large portfolio.

Residential Mortgages

Residential Mortgages: Within Residential Mortgages we target prime creditworthy customers, including first time buyers, self-employed and professionals, who often fall outside the automated lending criteria of some of the mainstream banks. We were also an early adopter of Government schemes such as the Help to Buy: mortgage guarantee and equity loan schemes.

Back to top

Strategic objectives

We are committed to supporting UK SMEs, homeowners and landlords who are under- or poorly served by the wider market. We remain excited by the opportunity and confident of delivering continued strong growth and attractive, sustainable returns.

Strategic objectives

  1. Serving customers’ needs
  2. Deliver strong, sustainable returns to shareholders
  3. Maintain prudent risk appetite, capital and funding positions
  4. Continue to build an engaged and committed team

Back to top

Highlights of the year

  • Listed on the London Stock Exchange on 13 March 2015
  • Entered the FTSE 250 in June 2015
  • Profit before tax up by 88% to £94.7m
  • Earnings per share increased 75% to 22.7p
  • Return on equity increased by 6.2 points to 19.7%
  • Net lending up by 28% to £6.1bn
  • Record annual loan origination of £2.6bn
  • Customer deposits up by 29% to £5.7bn; matching growth in lending
  • Strong capital position; CET1 ratio of 11.8%
  • 97% of customers providing online feedback would recommend us to friends and family

Back to top

Chairman’s statement Chief Executive Officer’s review

In our first Annual Report and Accounts as a listed company, we are pleased to report another year of strong lending growth and record levels of profitability.

❯❯ Read Full Statement

Back to top

Our performance

Annual loan origination (£bn)

We combine targeted human credit underwriting with speedy decision-making and great customer service. Our modern systems do the hard work, supporting our underwriters and creating a scaleable advantage.

Cost of risk (bps)

Our differentiated approach has enabled strong growth within our prudent risk appetite. Aided by a relatively benign environment, our credit losses have been consistently modest.

Cost of funds (%)

Our diversified funding base, along with falling interest rates, has been a key driver of our reducing cost of funds in recent years.

Underlying cost/income1 ratio (%)

We continue to leverage our operating platform to drive efficiency. We are confident of achieving a cost/income ratio of less than 40 per cent by the end of 2017.

Underlying return on equity1 (%)

We are building a strong track record of delivery. The Group remains committed to continuing to deliver strong sustainable returns to shareholders.

1 Excludes IPO related costs of £4.1 million pre-tax and £3.4 million post tax in 2015 (2014: £6.0 million and £4.6 million).

CET1 ratio (%)

We aim to maintain our fully loaded CRD IV CET1 capital ratio at around 11 percent.

Back to top


Full report
Strategic report
Corporate governance
Risk management
Financial statements

Back to top