"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."
Total net lending to customers totalled £12.4bn in the year to 30th June 2020, up from £10.6bn in the previous 12 months.
The group saw £0.5bn growth in retail mortgages to £7.3bn, which it says has been driven by strong retention activity as a result of improved customer loyalty propositions.
Business finance lending reduced by £0.2bn to £3.3bn as the division was significantly impacted by lower customer activity due to Covid-19.
The Group's pre-tax profits fell to £48.8m, down from £129.6m in 2019, which it says were as a result of reduced activity alongside "significantly increased impairments".
Aldermore recorded an impairment charge of £131.7m, up from £23.8m in the previous year, reflecting the worsening macroeconomic outlook, the impact of payment breaks and expected defaults as a result of Covid-19.
Phillip Monks, CEO of Aldermore Group, commented: “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 hugely proud of our dedicated colleagues who’ve worked hard to help nearly 45,000 of our customers through the effects of the crisis and the ongoing issues they face. From mortgage payment breaks and forbearance support; to providing businesses with guidance on the Government support available and business topics such as safeguarding and protecting their employees; we’ve been there for our customers.
“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. 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.”
