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Asset Finance Sponsored by Asset Finance News Aldermore Group reports profit growth despite subdued lending environment Published: 29th February 2024 Share Despite a 3% decrease in net lending, falling to £15bn compared to the previous year, Aldermore Group has successfully navigated subdued lending markets to post an operating profit before tax of £132.8m for the half year to 31 December 2023, a notable 13% increase from £117m year-on-year. The Group was able to deliver targeted lending growth in buy-to-let and asset finance, whilst continuing to maintain a disciplined price approach across all portfolios. MotoNovo Finance reported profit before tax for H1 2024 at £18.5m, 4% lower than the previous year (H1 2023: £19.3m). The company noted that their motor finance performance was impacted by balance sheet and NIM pressures in a more muted used car market. Steven Cooper (pictured), CEO of Aldermore Group said: “We’re pleased with our performance in the half, delivering strong underlying profits supported by increased revenues, a fall in impairments and steady growth in customer deposits despite fierce competition. This has been achieved against a backdrop of difficult economic conditions and a property market which has been at its most subdued in many years. We’re now supporting over 800,000 customers – helping those that the traditional high street banks typically overlook, to ensure they get the support to go for it in life and business. “Looking ahead, we’re optimistic about what the future holds. Our buy to let and asset finance businesses have been performing particularly well and with confidence slowly starting to return to the property market, we think we’re well placed to take advantage of improving conditions. However, there is no room for complacency as economic headwinds may persist in 2024. That’s why we continue to maintain a strong and resilient capital and funding position, while investing in our people and technology so that we can build great products and services for our customers.” With significant uncertainty surrounding the resolution of claims, complaints or class actions in relation to the FCA’s review of historical motor finance commission arrangements, Aldermore Group noted that no financial provision has been recognised at this stage due to the current unclear nature, extent and timing of any potential financial impact. Lisa Laverick Editor - Asset Finance Connect Sign up to our newsletter Featured Stories NewsBluestone and Novuna announce digital collaboration Corporate Member NewsClose Brothers launches Broker Solutions division Corporate Member NewsTime Finance reports strong growth in FY2024 Asset Finance