The Group says the results were helped by strong demand from small and medium-sized businesses, homeowners and landlords.
Companies: Aldermore Group
Relative newcomer Aldermore Group (LON: ALD) has this morning released their 2017 Half Year results, reporting a noteworthy 32% rise in profit before tax for the first half of the year. Operating income is up 17% to £150m, and EPS grew by a healthy 45% to 14.9p.
Aldermore, who operate with an aim to directly challenge Britain's "Big 5" lenders, said loan growth also grew more than 19% to £8.1bn in the same period.
Panmure Gordon published a report this morning following the announcement. In it the analyst commented:
"The group continues to guide to loan growth of 10-15% in FY2017, in line with our forecasts. The group anticipates delivering a CET1 ratio above 12% by FY2017, enabling possible dividend payment this year. The group has increased its usage of TFS by £197m in 2Q17 to £947m."
The future for Aldemore looks promising, having doubled its revenue in the three years to 2016 to £278bn and expected to reach £328bn by 2018. With a net profit margin of 33% in 2016 and this margin is expected to remain steady in the coming two years. Panmure also said:
"Aldermore is our Top Pick in the sector and remains in our Conviction list for 3Q17. The bank is a relatively low-risk business with a diverse mix of mortgages and SME lending which gives the bank multiple levers of growth and is supported by a scalable digital platform and distribution channels. We continue to believe Aldermore remains significantly undervalued despite current worries regarding the UK economic outlook."
Shares were up around 3% in early trading.