Aldermore makes second-half profit after year of investment

NEW bank Aldermore wiped out most of its losses last year after increasing its income by more than 50 per cent.

The homeowners and small businesses specialist cut its full-year losses by 90 per cent to £899,000 after passing the break-even point at the end of June.

The venture, set up by buyout house AnaCap and Morgan Stanley, posted net operating income of £42.64m, up from £28.25m, according to its accounts.

It made a profit in the second half of the year and chairman Sir David Arculus said the bank had made “astonishing progress”.

“Aldermore has established itself as the champion of British savers, British SMEs and British homeowners. Aldermore is backing Britain with a straightforward and reliable service that brings together our expertise and dynamic approach to life.”

Retail deposits rose 112 per cent to £1.347bn at 31 December and climbed to £1.6bn by March this year.

Last year the bank raised £62m from investors including funds managed by Goldman Sachs Asset Management, Honeywell Capital Management and the Ohio Public Employees Retirement System, as well as AnaCap.

At the year-end Aldermore’s core tier one capital ratio stood at 18.5 per cent, compared to 19 per cent at the end of 2010.