Aldermore sees profits surge by 50% despite Brexit concern

Challenger bank optimistic in face of economic jitters

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.”