However, the company’s underlying profits before tax for the period reached £25.8m, representing a 40% drop compared to Q2 2022 (£43m).

According to the lender’s financial results report, the fall in underlying profits before tax is primarily due to higher impairment charges resulting from future macroeconomic uncertainty in forward-looking IFRS 9 modelling.

Impairment coverage rose slightly to 1.85% (Q1 2023: 1.63%), however this was down from the same quarter last year (Q2 2022: 2.02%).

Together also saw a decrease in its average monthly lending, which reached £212.5m — 26.5% lower than Q1 2023. However, it was up 6.3% on the same period last year.

Its weighted average origination LTVs remained conservative at 60.8%, only slightly lower compared to the previous quarter (62%).

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Commenting on today’s results, Gerald Grimes, group CEO designate at Together (pictured above), said: “We delivered another robust performance in the period against a backdrop of extreme macroeconomic uncertainty, growing the loan book to £5.9bn while controlling origination volumes, increasing rates, and maintaining prudent LTVs. 

“The group remained highly profitable and cash generative, and the successful launch of our £467m FABS warehouse facility in December added further strength and diversity to our funding.

“We continued to deliver our strategic change agenda during the quarter, making further incremental progress on delivering the right experience for our customers and creating a more agile, efficient and scalable platform. 

“While inflation has started to show signs of trending lower and the pace of interest rate rises has slowed, some economists are forecasting the UK economy could enter recession during 2023, and this continued uncertainty may result in increasing numbers of people looking to specialist lenders for support. 

“With a clear purpose, a proven and well-funded business model and a successful multi-cycle track record, we believe Together is well placed to help many more customers realise their ambitions.”