Aldermore profits up 20 per cent in final results following First-Rand deal
Challenger bank Aldermore has revealed a 20 per cent jump in profit before tax in its last independent results following its acquisition by South African bank FirstRand.
The bank accepted a £1.1bn bid from FirstRand in November and the deal was closed last week.
Read more: Challenger bank Aldermore recommends £1.1bn takeover offer from FirstRand
In its results for 2017 it announced that underlying profit before tax had increased by 20 per cent to £160m, while underlying return on equity was 18.5 per cent.
The bank’s net interest margin was maintained at 3.5 per cent and net loan growth grew 15 per cent to £8.6bn.
Aldermore’s chief executive Phillip Monks said: “Our vision of providing ‘banking as it should be’ will not change, but with the backing of FirstRand our ambition will only grow and we aim to further support businesses and individuals with enhanced digital services and a broader range of straightforward propositions.”
Read more: Aldermore appoints experienced banker as chair to lead under Firstrand
In December Aldermore appointed Pat Butler as chairman to lead the challenger bank’s board.
Butler, a former consultant at McKinsey, also serves on the boards of Bank of Ireland, Hikma Pharmaceuticals and Ardonagh Group.
FirstRand is South Africa’s largest financial institution with a market capitalisation of £15.8bn.