The Group has attributed this result to its ability to deliver lending and customer deposit growth — supported by improved margins — and continuing to invest in the business.

Aldermore Bank’s operating profit before tax for FY2023 was £198.6m, 17% higher than the previous year (FY2022: £169.1m), and group net lending increased by 3% to £15.2bn.

This was largely driven by balance sheet growth and a 40bps expansion in net interest margin to 4.04% (FY2022: 3.64%).

Further enhancing its profit, the bank’s operating expenses of £209.6m decreased 4% so far this year (FY2022: £218.4m) reflecting progress on efficiency.

Impairment charges increased — reflecting a deteriorating macroeconomic outlook — with cost of risk increasing to 46bps (FY2022: 5bps).

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Steven Cooper, CEO at Aldermore Group (pictured above), commented: “We’re proud of what [we] have achieved in the past year [and are] pleased to be supporting more people than ever, with over 825,000 customers.

 “We are mindful that many are still struggling with the increased cost of living and so we are continuing to provide extra support to customers, while proactively contacting the most vulnerable to offer our help.

“Over the past year, we’ve significantly modernised Aldermore so that we can deliver new products and services at pace and quickly take advantage of changes in a market that is more unpredictable than ever.

“When we combine this greater flexibility in our business — with a strong, stable capital and liquidity position — we’re confident that we’re well placed to weather these challenging economic conditions.”