Al­der­more sees prof­its surge by 50% de­spite Brexit con­cern

Chal­lenger bank op­ti­mistic in face of eco­nomic jit­ters

The Peterborough Evening Telegraph - - Business Telegraph - By Paul Grin­nell paul.grin­nell@jpress.co.uk Twit­ter: @PTPaulGrin­nell

Peter­bor­ough-based chal­lenger bank Al­der­more has brushed off con­cerns over Brexit and low in­ter­est rates with a 50 per cent rise in prof­its. The bank, based at Peter­bor­ough Busi­ness Park, Lynch Wood, saw prof­its be­fore tax rise to £59 mil­lion as its loan bookrose­by11per­centto£6.8 bil­lion. Its deposit base grew 14 per cent to £6.5 bil­lion in the­first­six­month­soft­heyear.

Al­der­more, launched sev- en years ago as a chal­lenger to lead­ing high street lenders, has vowed to pass on the re­cent cut in the base in­ter­est rate to bor­row­ers and savers.

It says the im­pact of the change­anda­fur­ther­po­ten­tial rate re­duc­tion is not ex­pected to be ma­te­rial in terms of its net in­ter­est in­come, which stayed steady at 3.6 per cent.

Chief ex­ec­u­tive Phillip Monks said: “It has been another strong six months of op­er­a­tional and financial per­for­mance as we de­liv­ered dou­ble digit growth and an un­der­ly­ing re­turn on eq­uity in the high teens.

“New lend­ing in­creased by more than a quar­ter com- pared with the first half of last year as we­con­tin­ueto ex­pand our cus­tomer base.

He added: “Fol­low­ing the EU Ref­er­en­dum, we all face a pe­riod of height­ened po­lit­i­cal an­de­co­nomi­cuncer­tainty. As apure­lyUK-fo­cused­busi­ness, we are not di­rectly ex­posed to po­ten­tial changes in ac­cess to Euro­pean mar­kets. How­ever, we are ex­posed to the wider eco­nomic­ef­fect­soft­here­sult.

“To date, we have seen no di­rect im­pact onour­busi­ness but we con­tinue to mon­i­tor the sit­u­a­tion closely and have aproven­abil­ity to re­act quickly toachangin­gen­vi­ron­ment.”

“We re­main op­ti­mistic about our fu­ture.”

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