Aldermore has reported that underlying profit before tax increased by 34% year-on-year in 2016 to a record high of £133m.
The challenger bank provided over £2bn in new mortgage lending in 2016. Net loan growth across the mortgages division increased 24% year on year to £5.7bn and total customer numbers also reached an all-time high at over 30,000.
Total net loans to customers increased by 22% during the year or £1.3 billion to £7.5 billion at the end of 2016.
In residential mortgages, lending grew by 7% to £1.5bn. This growth was driven by £466m of originations which, over the year, more than offset a high level of redemptions on Help to Buy mortgages written two years ago when Aldermore was the first to market with the product.
In SME commercial mortgages, Aldermore saw a growing proportion of customers engaging directly, which contributed to loan growth of 12% to £930m in 2016.
In addition, 2016 saw Aldermore’s buy-to-let lending rise by 38% to £3.3bn.
In 2016, total deposits increased 16% to £6.7bn, including SME deposits rising by 18% to £1.6bn.
Charles Haresnape, group managing director, mortgages, said: “2016 has been a fantastic year for Aldermore with growth across all our business divisions. We’ve continued supporting homeowners, landlords, SMEs and house builders. As a result our total mortgage lending grew by 24% year-on-year to £ 5.7bn.
“Our buy-to-let offering continues to prove popular with both individual and corporate landlords, increasing lending by more than a third (38%) year on year to £3.3 billion. We have also enhanced our propositions for first time buyers and self-employed customers and our committed approach to truly understanding the detailed needs of our customer’s enabled us to provide over £2bn in new mortgage lending in 2016.
“We are dedicated to go beyond the one-size fits all approach, employing specialist underwriters to understand each individual, offering a service that works best. Operating in carefully selected segments where we have the necessary experience and expertise to deliver strong and sustainable risk-adjusted returns through responsible lending.
“We remain committed to helping businesses and individuals to seek and seize opportunities, further enhancing our service and digital capabilities.”
