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UK new bank Aldermore's first-quarter lending rises seven percent
May 14, 2015 / 6:44 AM / 2 years ago

UK new bank Aldermore's first-quarter lending rises seven percent

(Reuters) - British banking newcomer Aldermore Group Plc (ALD.L) said first-quarter lending rose 7 percent as it added more customers including homeowners and small and medium enterprises.

The bank, founded by former Barclays executive Phillip Monks in 2009 with backing from AnaCap, said it was on track to achieve targeted 1.4 billion pounds of net new lending in 2015.

Net lending to customers in the first quarter ended March rose to 5.1 billion pounds ($8.03 billion) from 4.8 billion pounds at the end of 2014.

Total customer deposits in the period grew by 4 percent to 4.7 billion pounds.

“Double-digit growth in SME deposits provides continued funding diversification as lending remains primarily funded by our dynamic online savings franchise,” Chief Executive Phillip Monks said in a statement.

Most “challenger” banks are planning to operate online and use new technology allowing a quicker and cheaper platform.

British regulators and lawmakers are keen for banks such as Aldermore to challenge the dominance of the so-called ‘Big Four’, which provide nine out of every 10 business loans.

Shares in the SME-focussed bank have gained 32 percent in value since their stock market listing in March. They closed at 254 pence on Wednesday.

(Corrects comparative period in third paragraph to the end of 2014, not a year earlier. Corrects share gain in final paragraph to 32 percent from 14 percent)

Reporting by Aashika Jain in Bengaluru; Editing by Gopakumar Warrier

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