You are here: Home - News -

Tesco Bank reports strong mortgage lending growth

  • 11/04/2018
  • 0
Tesco Bank reports strong mortgage lending growth
Tesco Bank posted bumper lending growth driven by mortgages in preliminary annual results released today, as the lender expanded its intermediary distribution.



Mortgage balances at the bank have grown to £3bn, and now make up 26% of Tesco’s lending portfolio, up from 22% last year, helping to boost the bank’s income for the year.

The bank did not publish its gross lending total for the year, however in October it revealed it had completed £2.5bn of lending in its first full year operating in the broker market.

Tesco Bank’s operating profits before exceptional items increased by 10% year-on-year to £173m.

Overall loans and advances to customers reached £11.5bn, up by 15.7%, and the lender said its balance sheet is well positioned to support further growth.


Customers up

Tesco Bank reported a rise in customer numbers to 5.6m customers, growth of around 4%, as deposits grew to £9.2bn.

However, underlying impairment charges increased by around 30% to £136.5m, which the bank said reflected balance growth and the implementation of a number of credit initiatives in recent years.

The wider Tesco group today posted a 28% rise in profits to more than £1bn.

Laith Khalaf, senior analyst at Hargreaves Lansdown, said: “Tesco Bank has been helped by customer redress costs falling out of the equation which has led to a big jump in its reported profits.

“There’s some headwinds too though, with ATM income falling back as fewer people are using cash, and an increase in loan impairment charges.

“All in all things heading in the right direction, but it’s a relatively minor part in the Tesco group as a whole.”

There are 0 Comment(s)

Comments are closed.

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
Legal and General targets interest-only borrowers with new lifetime mortgage deal

Legal and General has launched a new optional payment lifetime mortgage (OPLM).