Aldermore misses 1H EPS forecasts, but spies dividend payments

Aldermore missed analysts' interim profit forecasts despite a reduction in its cost-to-income ratio, but held out the prospect of dividend payments, saying it was on track to meet targets for beefing up its capital buffers.

The challenger bank's cost-to-income ratio improved from 46% to 44%, helping drive a 32% jump in its half-year pre-tax profits to £78m.

Despite that, at 14.9p earnings per share came in just shy of the 15.3p forecast by analysts at Numis, although that did mark a rise of 45% on the year-ago period.

Its return on equity was also higher, rising from 16% to 19%.

Net interest margins at the challenger bank dipped from 3.6% to 3.5%, in-line with its guidance.

For all of fiscal year 2017, Aldermore continued to expect a common equity Tier 1 ratio above 12%, which it said would enable the board "to consider" dividend payments.

Commenting on the lender's results, chief Phillip Monks said: "We are delighted with the performance and strategic progress made so far in 2017. Whilst we remain vigilant to the risks posed by the economic uncertainty facing the UK, continued earnings and balance sheet momentum provide us with greater resilience and position us well to capitalise on further strategic opportunities."

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