{
  "id": 6555548,
  "title": "Aldermore Group reports 74% drop in statutory profit",
  "url": "https://urgent.news/2026/09/10/aldermore-group-reports-74-drop-in-statutory-profit",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-10T07:16:25.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/company-news/aldermore-group-reports-74-drop-in-statutory-profit-93CH-4895023"
  },
  "original_language": "en",
  "account": "Aldermore Group PLC, operating through Aldermore Bank PLC and MotoNovo Finance Limited, experienced a substantial 74% reduction in statutory profit before tax for the fiscal year ending June 30, 2026, according to a press release issued on the same day. The decrease in profit, standing at £51.2 million before tax, marked a stark contrast to the £193.5 million recorded in the preceding year. The primary cause of this decline was a £164.8 million charge associated with the Financial Conduct Authority's motor finance redress scheme, along with £18.1 million in restructuring charges and £4.8 million in transaction-related costs linked to FirstRand Group's exploration of a potential sale of Aldermore Group. Despite these adverse factors, the company's net interest income saw a modest 1% increase to £604.1 million, while the net interest margin slightly contracted from 3.78% to 3.46% due to reduced asset yields and deposit pricing pressures. Customer lending balances climbed by 13% year-on-year to £18.8 billion, and customer deposits rose by 12% to £19.1 billion. The growth in lending was partly attributed to the acquisition of Octane's lending business assets in March 2026, injecting £500 million in specialized property finance loans. However, the provision for historical motor finance commissions surged to £231.8 million from £73.1 million in June 2025, reflecting Aldermore Group's forecast of the FCA's proposed redress scheme, although this differed from an initial estimate of £280 million published on April 7, 2026. The Group's cost of risk rose to 26 basis points from 10 basis points, staying within the lower range of its through-the-cycle capital requirements. The reduction in the CET1 ratio to 13.6% from 14.9% was primarily due to the motor finance charge and the Octane acquisition, while the Group adjusted its CET1 target range to 12.0%-13.0% in anticipation of Basel 3.1 implementation effective January 1, 2027. Aldermore Group, encompassing Aldermore Bank PLC and MotoNovo Finance Limited, operates under the umbrella of FirstRand Group.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}