Aldermore

Aldermore Bank is a retail bank which provides financial services to small and medium-sized businesses. It was founded in 2009 and listed on the London Stock Exchange in March 2015. It was a constituent of the FTSE 250 Index until it was acquired by South African banking conglomerate FirstRand in March 2018.

Aldermore Bank plc
TypePublic
LSE: ALD
FTSE 250 Component
IndustryFinance
Founded2009
HeadquartersReading, Berkshire
Key people
Pat Butler (Chairman)
Steven Cooper (CEO)
ProductsFinancial services
Revenue£358.2 million (2016)[1]
£144.2 million (2016)[1]
£93.5 million (2016)[1]
ParentFirstRand
Websitewww.aldermore.co.uk

History

Aldermore was established with backing from private equity company, AnaCap Financial Partners LLP, in early 2009.[2]

The acquisition of Ruffler Bank in May 2009 provided Aldermore with its banking licence and an asset finance business which was combined with the commercial mortgage business of Base Commercial Mortgages, a small mothballed operation.[3]

AnaCap purchased Cattles Invoice Finance, a factoring business, from Cattles PLC in 2009, and in 2010 the division became part of Aldermore.[4]

It raised £62 million of further investment from a consortium of funds managed by Goldman Sachs Asset Management, Honeywell Capital Management, and the Ohio Public Employees Retirement System in August 2011[5] and it received an additional capital investment from Centerbridge Partners when it issued a £36 million subordinated bond in May 2012.[6]

In 2012 the bank reached its first full year of profits in its third year of operations.[7]

Aldermore was recognised as a challenger bank by the media,[8] and launched a successful initial public offering in March 2015,[2] with an opening market capitalisation of approximately £651 million.[9]

In October 2017 it was announced that Aldermore had agreed to be acquired by South African banking conglomerate FirstRand. The deal valued Aldermore at £1.1bn.[10]

Operations

Aldermore provides financial services to small and medium-sized businesses.[11] Its services include retail and business savings and asset and invoice finance, as well as commercial and residential mortgages.[12]

The bank offers lending across the following areas: asset finance, invoice finance, SME commercial mortgages, buy-to-let mortgages and residential mortgages.[13] Its lending activity is largely funded by the deposits it receives from business and personal savers.[14]

Aldermore has no branch network but serves customers and intermediary partners online, by phone and face to face through its regional offices. It was also the first bank to offer this service and publishes this customer feedback unedited on its website.[15]

The company's board has been chaired by Pat Butler since January 2018.[16] Non-executive directors are Richard Banks, John Hitchens, Harry Kellan, Alan Pullinger, Cathy Turner, Romy Murray, Nicolina Andall and Ruth Handcock.[17]

Affiliations

Aldermore is the sponsor of the National Association of Commercial Finance Brokers (NACFB),[18] and a member of the Council of Mortgage Lenders.[19] Aldermore is a member of the following bodies: the British Bankers' Association,[20] the Finance and Leasing Association,[21] the Asset Based Finance Association,[22] the Council of Mortgage Lenders[23] and the Intermediary Mortgage Lenders Association.[24]

References
  1. "Annual Results 2016" (PDF). Aldermore. Retrieved 14 March 2017.
  2. "Aldermore: How the bank formed in the depths of the crisis found success". The Telegraph. 15 March 2015. Retrieved 13 June 2015.
  3. Cave, Andrew (30 July 2011). "Aldermore - a bank that loves to lend". The Daily Telegraph. Retrieved 29 April 2015.
  4. "Cattles Invoice Finance rebranded for the second time in a year". Business Zone. 6 September 2010. Archived from the original on 26 February 2017. Retrieved 25 February 2017.
  5. "Goldman Sachs takes Aldermore stake". The Telegraph. 24 September 2011. Retrieved 13 June 2015.
  6. "Boost for new bank Aldermore as it clinches £36m fundraising". City AM. 14 May 2012. Retrieved 13 June 2015.
  7. Croucher, Shane (31 July 2013). "Challenger Bank Aldermore Boosts SME and Consumer Lending by 60%". International Business Times. Retrieved 15 October 2015.
  8. Grice, Andrew (12 September 2012). "Cable and Osborne on a Collision Course Over Small-Business Bank". London: The Independent (UK). Archived from the original on 12 September 2012. Retrieved 21 January 2013.
  9. Partington, Richard (10 March 2015). "Aldermore Raises $340 Million in London Initial Public Offering". Bloomberg L.P. Retrieved 1 May 2015.
  10. "Aldermore agrees takeover by South Africa's FirstRand - BBC News". Bbc.co.uk. 6 November 2017. Retrieved 13 January 2018.
  11. Hurley, James (6 May 2012). "Aldermore - A Dads Army Bank For SMEs". London: The Telegraph. Retrieved 21 January 2013.
  12. "Our History". Aldermore Bank PLC. Retrieved 21 January 2013.
  13. Leggett, Joseph (24 February 2023). "Aldermore Business Banking Explained – Savings, Fees & Reviews". Business Financed. Retrieved 27 February 2023.
  14. Hurley, James (6 May 2012). "Aldermore - A Dads Army Bank For SMEs". The Telegraph. Retrieved 3 February 2017.
  15. "Intro – Aldermore Bank Reviews". Advisory HQ. 9 May 2016. Retrieved 3 February 2017.
  16. "Board of Directors | Aldermore". www.investors.aldermore.co.uk. Retrieved 15 September 2022.
  17. "Board of Directors | Aldermore". www.investors.aldermore.co.uk. Retrieved 15 September 2022.
  18. "NACFB - Working with Lenders". NACFB. Archived from the original on 24 October 2012. Retrieved 16 October 2012.
  19. "Directory of Members and Associates". Council of Mortgage Lenders. Archived from the original on 24 October 2012. Retrieved 16 October 2012.
  20. BBA Members. Retrieved 14 February 2017
  21. Directory Archived 2017-02-15 at the Wayback Machine. Retrieved 14 February 2017.
  22. List of Members Archived 2017-02-15 at the Wayback Machine. Retrieved 14 February 2017.
  23. Directory of members Archived 2017-02-15 at the Wayback Machine. Retrieved 14 February 2017.
  24. Members list. Retrieved 14 February 2017.
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