Aldermore challenger bank has reported soaring profits but has warned Brexit uncertainty is weighing hard on the fiercely competitive banking industry.
The challenger bank said, “As we await the outcome of the UK’s Brexit negotiations, there is a high degree of uncertainty in terms of the economic outlook.
“Competition among banks is intense and the operating environment is expected to remain challenging, with bank margins under continuing pressure.
“Within this environment, we will continue to focus on maintaining a high-quality diversified portfolio.”
MPs are soon to vote on the new version of the prime ministers Brexit deal on Tuesday, failure to pass the deal through parliament could, most likely see the UK crash out of the UK.
Aldermore Bank made a whopping pre-tax profit of £74.7m in the six months to 31 December compared to £62.8m the previous year.
The bank has increased their loans by 4% to £9.4bn and maintained a net interest margin.
The bank’s return on equity grew 16% from 13%, this is the key measure of a bank’s profitability.
Phillip Monks, chief executive said, “In a competitive market we have achieved good profitability and returns while managing risk appropriately. We have a balanced portfolio of assets that has served us well.”
Monks, a former Barclays executive added, “Ten years ago, many small businesses were losing a battle for survival as the banking establishment pulled up the drawbridge.
“Founded as a start-up in 2009, Aldermore was the first of a new breed of challenger banks to offer a strong alternative and I’m proud of the additional choice we have made available to businesses, homeowners and landlords.”