Together’s loan book grows by nearly third annually to £6.2bn

According to the lender’s latest financial results, it is also an increase from £5.9bn on Q2 2023, which covered the three months to31  December 2022.

The lender said arrears had remained low and were below pre-pandemic levels, which it said showed a “robust loan book quality”.

“As anticipated we have noted some marginal increases in some early-stage arrears within certain segments of the loan book and which we are proactively managing,” it said.

The lender added that its average monthly lending came to £211.7m during the quarter, which is in line with the prior quarter’s figure of £212.5m and a decrease on £234.7m reported in the same period last year.

Together said this reflected a “continued controlled approach to originations”.

The lender said its impairment coverage was “broadly consistent” at 1.74 per cent, which compared to 1.84 per cent in the prior quarter and 1.85 per cent in the same period last year.

The company’s underlying profit before tax came to £41.3m, which in-line with the Q3 2022 figure and up from £25.8m in Q2 2023.

Together said this was due to the “impact of increased impairment provisions and one-off expenses in the prior quarter”.

Gerald Grimes (pictured), group CEO designate of Together, said: “Together delivered another strong performance in the quarter to 31 March, as we successfully grew our loan book to £6.2bn while maintaining a prudent approach to originations, conservative LTVs and headline arrears levels remaining well below pre-pandemic levels.

“As the pace of interest rate rises slowed, our net interest margin recovered to five per cent and the group has remained highly profitable and cash generative.”

He added: “We have also made good progress in shaping our business for the future, strengthening and diversifying our group and operational management teams, maintaining leading positions in key markets, developing talent across the organisation and delivering on our sustainability strategy.

“While the UK’s economic outlook is showing signs of improvement with inflation forecast to reduce over the next six months and interest rates to stabilise, the environment remains challenging for many households and businesses.”

Grimes said: “With a clear purpose, a successful multi-cycle track record and a proven and well-funded model, Together is well placed to help increasing numbers of customers realise their ambitions and to play our part in supporting the UK’s economic recovery.”