British banking newcomer Aldermore Group saw its lending rise 7 per cent in the first quarter as it added more customers including homeowners and small and medium-sized businesses.
The recently-listed bank, founded by former Barclays executive Phillip Monks in 2009 with backing from private equity firm AnaCap, said it was on track to achieve its target of £1.4billion of net new lending in 2015.
Aldermore said net lending to customers in the first quarter ended March 31 rose to £5.1billion, up from £4.8billion at the end of 2014. Total customer deposits in the period grew 4 per cent to £4.7billion.
Aldermore boss: The recently-listed bank was founded by former Barclays executive Phillip Monks in 2009 with backing from private equity firm AnaCap
Mr Monks said: ‘Double-digit growth in SME deposits provides continued funding diversification as lending remains primarily funded by our dynamic online savings franchise’.
British regulators and lawmakers are keen for ‘Challenger’ banks such as Aldermore to challenge the dominance of the so-called ‘Big Four’ lenders – HSBC, Barclays, Lloyds and RBS – which provide nine out of every 10 business loans.
Shares in Aldermore have gained 32 per cent in value since their London stock market listing at an offer price of 192p each on March. But they retreated today, dropping nearly 5 per cent or 12p lower to 242p in lunchtime trade.
Aldermore’s strong stock market debut came after the lender postponed its original plans to float last October, citing the then ‘deterioration of global equity markets’.
Rival challenger bank Virgin Money also delayed its initial flotation plans around the same time, although it eventually launched on the London Stock Exchange last November.
Shares in Virgin Money have performed strongly since their debut at 238p reach, helped by strong 2014 results revealed in March, although its shares were also lower today, down 2.7p at 408.8p.
A number of other specialist lenders have also floated on the LSE recently, with Shawbrook making its market debut just two weeks after Aldermore.
Shawbrook shares have also performed strongly since, jumping from their issue price of 190p to 333p, up 2.5p today.
And OneSavings Bank listed last June SE All Share Index today after
It recently said that its first quarter net loans and advances grew by £455million, boosted by its purchase of a portfolio of UK-based second-charge mortgages.
OneSavings was formed following the recapitalisation of Kent Reliance Building Society by US private equity group JC Flowers in 2011.
Shares in OneSavings, which floated at 170p each also last June, were 4p lower today at 300p.