In its interim statement, Aldermore said gross mortgage lending had been boosted by the lender’s use of the Bank of England’s Term Funding Scheme, which was launched this year. According to the statement, Aldermore was the first bank to use the scheme, which it began utilising in September.
Aldermore said its net interest margin remained stable in the third quarter, keeping in line with management expectations.
The lender also recorded “significant” capital growth during Q3, as its CET1 capital ratio – a measurement of its retained earnings and common equity divided by risk weighted assets – grew by 40bps to 11.5%. Phillip Monks, CEO, said the capital growth would help Aldermore “deliver on its IPO commitment of capital self-sufficiency by the end of 2016”.
Monks added: “While the economic and regulatory environment continues to evolve, we have seen no changes in customer demand, our pipeline remains strong and our credit performance robust. As a result, in the first nine months of 2016 we have grown the loan book by over £900m balanced across SME and mortgage customers, whilst maintaining our strict controls on underwriting standards.
“New lending has been funded through the growth of our deposit franchises as well as the use of Government funding schemes, including the Bank of England’s newly launched TFS which we began to utilise in September.”
Aldermore’s full year results are due to be published in March 2017.