Net lending to borrowers rose eight per cent to £13.4bn from £12.4bn in the previous year. Within this, retail mortgage lending remained flat at £7.3bn year-on-year. A strategic decision to temporarily withdraw some higher risk products was behind the lack of growth.
Aldermore Group posted profit before tax of £157.8m compared to £48.8m in 2020. Aldermore said its financial performance reflected growth in lending from MotoNovo Finance, improved margins due to reduced funding costs and changes in its business mix. Lower impairment charges due an improved economic outlook also helped to boost profits.
Net interest income grew by 18 per cent to £436.4m, up from £370.5m the year before. The group posted an impairment charge of £52.1m compared to £131.7m in the financial year ended June 2020.
The bank granted payment breaks to almost 57,000 customers with 98 per cent now making full payments.
Steven Cooper, chief executive of Aldermore Group, said: “During the year we’ve delivered a robust performance and achieved growth through a period of unprecedented economic uncertainty. Our priorities throughout the Covid-19 pandemic have been to support our customers as well as safeguard our colleagues’ wellbeing.
“As the UK begins to recover from the pandemic, we’re working even harder to ensure that SMEs and individuals can seize the opportunities that lie ahead.”