Strong appetite for credit buoys Aldermore

CHALLENGER bank Aldermore saw its profits shoot up in the first half as demand for fresh funding increased among Britain’s homeowners, landlords and small businesses.

The bank, set up by former Barclays executive Phillip Monks in 2009, approved £1.6bn of new customer loans in the six months to June 30, a rise of 10pc on a year ago, while mortgage lending rose 9pc to £6.2bn.

That helped push pre-tax profits up 32pc to £78m for the period, suggesting the lender’s mission to lure customers over from the “big five” high street giants is working.

“The credit crunch which began 10 years ago revealed the UK’S high street banks to be failing their customers,” Mr Monks said. “We are addressing a market opportunity that is as real today as it was in the aftermath of the global financial crisis.”

Mr Monks did not rule out tie-ups with other businesses, adding that potential deals could come in the shape of “joint ventures, portfolios of assets or good old fashioned M&A”. The bank – which targets small and medium-sized businesses, homeowners and landlords – may this year pay its first dividend since its IPO in 2015, with Mr Monks saying the decision will be based on growth opportunities, anticipated changes in capital requirements and the economic environment.

He also said the group was reviewing its organisational structure to ensure “we are operating as efficiently as possible”, but did not elaborate on which areas might be up for a rejig.

The results come after Virgin Money also unveiled a bumper first half.