The lender said it was impacted by the pandemic which caused a reduction in customer activity and increased its impairments.
The group’s impairment charge grew to £131.7m from last year’s £23.8m as it completed a full year following its launch and integration with car finance firm Motonovo Finance. It was also affected by the payment breaks and defaults resulting from the pandemic.
However, Aldermore said it maintained a “strong capital position” and was well placed to continue to support its clients.
It reported a £500m growth in retail mortgages to £7.3bn which it said was driven by customer retention due to its improved customer loyalty schemes.
Overall, net lending to customers was recorded at £12.4bn, up from £10.6bn last year.
Phillip Monks, CEO of Aldermore Group, said: “Aldermore was born out of a previous economic crisis and backing our customers to fulfil life’s hopes and dreams is in our DNA. The Covid-19 crisis has been massively challenging for many of our customers and we know how many difficulties they’ve experienced.
“I’m pleased that our results show a robust performance and the delivery of a profit for the year, despite a global health pandemic and continued Brexit uncertainty. Our business model and approach has again been proven to provide customers with award-winning financial services and the support they need when it matters most.”
“Aldermore continues to have the financial strength and focus of purpose to support our customers in the future, but there remains significant uncertainty ahead,” he added.
“Therefore, as the country continues to deal with the effects of the pandemic, the UK government must do what it can to support a distressed economy, ensure an orderly Brexit at the end of the year, and mitigate any further shocks to help protect jobs and businesses in the future.”