Aldermore: No direct impact from Brexit

Ryan Fowler

August 11, 2016

The decision to exit the EU has yet to be felt by challenger bank Aldermore, according to CEO Phillip Monks. 

In it’s latest results the bank reported an 50% increase in pre-tax profit, up to £59m with the net interest margin remaining stable at 3.6%.

During the first half of 2016 saw Aldermore’s residential mortgage book increase 9% to £1.5bn whilst its buy-to-let lending surged 74%.

And Monks said that the bank was in a strong place to weather any instability following the EU referendum.

He said: “Following the EU referendum, we all face a period of heightened political and economic uncertainty.

“As a purely UK-focused business, we are not directly exposed to potential changes in access to European markets.

“However, we are exposed to the wider economic effects of the result. To date, we have seen no direct impact on our business but we continue to monitor the situation closely and have a proven ability to react quickly to a changing environment.”

He added the the bank is confident that it will be able to navigate its way past any potential issues should they arrive.

He said: “We remain optimistic about our future. We are a diversified business and continue to focus on supporting our customers who are under- or poorly served by the wider banking market.

“Building on our strong track record of delivery across our prudently constructed portfolio and with our experienced management team, modern systems and efficient operating platform, we remain confident that we will successfully navigate the challenges ahead as well as take advantage of the opportunities that change may bring.”

Overall the group’s underlying profit was up 45% before tax to £63m for the first six months.

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