Aldermore Group has seen a 14% rise in profits before tax, it has revealed.
Group profit before tax increased £30.6m to £253.1m, up from £222.5m during the previous financial year.
The group explained that it had had a “strong year” despite a challenging market.
However, its full-year results to June 30 this year showed a 12% year-on-year decline in total income.
The results also showed a 3% drop in net interest income, which fell from £621m to £604.3m.
Meanwhile, total customer lending saw a 1% increase from just under £15.2bn to £15.3bn, while total customer deposits grew by 8% to £16.3bn.
The group said its “improved financial performance” could be attributed to several factors, including a focus on higher-returning segments amid market-wide margin pressure.
Steven Cooper, chief executive of Aldermore Group, said: “Aldermore has had a strong year, despite a challenging economic backdrop.
“With interest rates remaining high over the period, we are pleased to have achieved positive lending growth in a more subdued market, by focusing on higher-returning, more specialised segments in which we retain a significant advantage.
“While market headwinds have begun to abate, with slowing inflation and the first interest rate cut in four years, we remain focused on ensuring we support our customers following one of the largest increases in the cost of living in a generation.”
He continued: “Our recognition of the more challenging environment meant we exercised careful operational cost management, while continuing to invest in improving our customer and colleague experience.
“In addition, we have also benefitted from a lower impairment charge, reflecting a more stable macroeconomic outlook and progress on remediation activity, all while ensuring our capital and liquidity positions remain strong.
“With signs of a normalising market, Aldermore is well-positioned to build on what it has already achieved to deliver significant future growth.”
