Peterborough challenger bank enjoys soaring pre-tax profits

Phillip Monks, of Aldermore.
Phillip Monks, of Aldermore.

Peterborough-based challenger bank Aldermore saw its pre-tax profits last year soar by 36 per cent.

The bank, in Western House, Peterborough Business Park, Lynch Wood, says profits before tax reached £129 million compared to £95 million the previous year.

The bank, which employs 900 people nationally and specialises in loans to small and medium-sized businesses, saw net loans to customers rise by 22 per cent to £7.5 billion at the end of last year - up from £6.1 billion in 2015.

It also achieved its goal of becoming financially self-sufficient in the second half of 2016.

Chief executive Phillip Monks said: “2016 was another remarkable year for the Group. We’ve continued our track record of delivering strong growth, achieving record underlying profitability.

“More than 220,000 businesses and individuals now choose Aldermore for their banking needs.

“Our straightforward savings business grew by 16 per cent, with around 30 per cent of balances coming from businesses.

“Growth has been achieved across our diversified portfolio whilst maintaining a robust approach to risk management.

He added: “We maintain a strong capital position and reached the key milestone of becoming capital self-sufficient in the second half of 2016.

“We generated an underlying return for our shareholders of 18 per cent in 2016 and we remain focused on continuing to deliver returns around this level over the medium term.

“We have made a strong start to 2017.”