Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. United Kingdom
  4. London Stock Exchange
  5. Aldermore Group PLC
  6. News
  7. Summary
    ALD   GB00BQQMCJ47

ALDERMORE GROUP PLC

(ALD)
SummaryNewsCompany 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

Aldermore forecasts strong 2017 despite Brexit uncertainty

03/02/2017 | 06:04am EDT

(Reuters) - Aldermore Group Plc (>> Aldermore Group PLC) forecast strong loan-book growth in 2017, after reporting a better-than-expected 34 percent jump in profit for the previous year due to higher mortgages and loan demand from homeowners and small and medium-sized businesses.

(Reuters) - Aldermore Group Plc (>> Aldermore Group PLC) forecast strong loan-book growth in 2017, after reporting a better-than-expected 34 percent jump in profit for the previous year due to higher mortgages and loan demand from homeowners and small and medium-sized businesses.

The UK-based bank, founded by ex-Barclays executive Phillip Monks with backing from European private equity investor AnaCap, said Britain's exit from the European Union was unlikely to have any material impact on its business in 2017.

"We have not seen any tail-off in demand post-Brexit ... demand for the business remains strong," Chief Executive Monks told Reuters on Thursday.

Aldermore's underlying pretax profit rose to 133 million pounds in 2016, beating analysts' consensus by 6 percent and topping the 99 million pounds reported for 2015.

Shares in the company, which said it had seen a strong start to 2017, were up 3 percent at 244.6 pence at 0839 GMT, helping it feature among London's top midcap gainers <.FTMC>.

UK lenders have so far defied predictions that Brexit could trigger higher bad debts and poorer lending volumes at banks already challenged by rock-bottom interest rates. Virgin Money (>> Virgin Money Holdings (UK) PLC) and Metro Bank (>> Metro Bank PLC) earlier posted strong results.

Aldermore on Thursday said loan originations - the process by which a borrower applies for a new loan - grew by 24 percent to 3.2 billion pounds from the previous year, resulting in total loan growth of 22 percent at 7.5 billion pounds.

It forecast loan-book growth of between 10 percent and 15 percent in 2017, with further growth thereafter.

"While we acknowledge that Aldermore's loan book is unseasoned, we do not believe investors require any additional return to hold the stock given the diversified nature of the loan book (and) sustained momentum in the business," RBC Capital Markets wrote, hiking their target price by 30 pence to 280 pence.

Monks said Aldermore was not interested in buying assets from up-for-sale Co-operative Bank <42RQ.L>, saying Aldermore did not need to strike big deals going forward and its focus would remain on organic growth.

Rescued from the brink of collapse by a group of hedge funds in 2013, Britain's Co-op bank, which has 4 million customers, is seeking a buyer after struggling to meet regulatory capital requirements. Virgin Money has expressed interest.

Annacap, which currently owns about 40 percent of Aldermore and is its top shareholder, bought Barclays' French retail banking arm, causing some speculation that it might be in the race to buy Co-op bank.

($1 = 0.8145 pounds)

(Corrects last paragraph to show Anacap bought Barclays' French retail banking arm, not Aldermore)

(Reporting by Esha Vaish in Bengaluru; additional reporting by Lawrence White in London and Noor Zainab Hussain in Bengaluru; Editing by Gopakumar Warrier and Dale Hudson)

By Esha Vaish


ę Reuters 2017
Stocks mentioned in the article
ChangeLast1st jan.
ALPHABET INC. 0.71% 2844.3 Delayed Quote.62.29%
LETS HOLDINGS GROUP CO., LTD. -3.83% 6.27 End-of-day quote.-19.41%
METRO BANK PLC 1.74% 105 Delayed Quote.-25.00%
METRO INC. 0.45% 60.18 Delayed Quote.5.95%
NEXT PLC -0.51% 8178 Delayed Quote.15.41%
All news about ALDERMORE GROUP PLC
2018ALDERMORE : EnviroBuild secures sustainable future with Aldermore Invoice Finance facility
PU
2018ALDERMORE : Nearly a quarter of SMEs miss out on business opportunities due to lack of fun..
PU
2018MAGNETAR CAPITAL PARTNERS LP : - Form 8.3 - Aldermore Group plc
PR
2018MAGNETAR CAPITAL PARTNERS LP : - Form 8.3 - Aldermore Group plc
PR
2018UK's Aldermore creates role of group managing director, retail finance
RE
2018MAGNETAR CAPITAL PARTNERS LP : - Form 8.3 - Aldermore Group plc
PR
2018MAGNETAR CAPITAL PARTNERS LP : - Form 8.3 - Aldermore Group Plc
PR
2018ALDERMORE : Form 8.5 (EPT/RI) Aldermore Group plc
PU
2018ALDERMORE : Form 8.5 (EPT/NON-RI) Aldermore Group plc
PU
2018ALDERMORE : Form 8.5 (EPT/RI)- Aldermore Group plc
PU
More news
Analyst Recommendations on ALDERMORE GROUP PLC
More recommendations
Managers and Directors
Steven Martin Cooper Chief Executive Officer
Claire Cordell Chief Financial Officer & Executive Director
Patrick Noel Butler Group Chairman
Zish Khan Chief Operating Officer
Danuta Gray Senior Independent Non-Executive Director
Sector and Competitors