Core Insights - Allica Bank's latest survey indicates a significant increase in asset finance broker confidence, with 51.2% of brokers expressing a positive outlook for the upcoming months, a notable rise from 24% in the previous quarter [1][2] - Despite mixed trading conditions, with 42.5% of brokers reporting a decline in asset finance applications, 28% noted an increase, suggesting resilience in the sector [2][3] - The bank highlights a £65 billion lending gap in SME finance due to high street banks reducing their involvement, contributing to the UK's lowest business investment rate in the G7 [3] Broker Confidence - Over half of the surveyed brokers (51.2%) have a positive outlook, more than double the previous quarter's figure of 24% [1] - Only 18% of brokers expressed concerns about the next six months, while 30% remained neutral [1] Trading Conditions - 42.5% of brokers reported a decrease in asset finance applications, indicating a cautious approach from some businesses [2] - Conversely, 28% of brokers experienced an increase in applications, consistent with the previous quarter's performance [2] - 30% of brokers indicated that application volumes remained largely unchanged [2] Sector Resilience - Allica Bank views the current figures as evidence of the sector's resilience amid challenging conditions [3] - Key sectors driving activity include transport and logistics, construction, and manufacturing, which have remained consistent over previous quarters [3] Strategic Initiatives - Allica Bank has launched its lowest asset finance rate in three years for hard assets, aimed at supporting brokers and their clients [4] - The bank's commitment to helping businesses succeed is emphasized by its proactive approach in the current lending environment [4] - Brokers are experiencing renewed excitement in client conversations, focusing on future opportunities despite ongoing caution [4]

Core Viewpoint - Aldermore Group reported a 24% year-on-year decline in profit after tax, amounting to £141.1 million ($190.8 million) for the financial year ending June 30, 2025, primarily due to increased charges related to historical motor finance commissions and the non-recurrence of prior year's impairment provision releases [1][2]. Financial Performance - The group's total income increased by 2%, rising to £600.4 million from £585.8 million in the previous year [2]. - Customer lending rose by 8% over the 12 months, reaching £16.60 billion, up from £15.33 billion the previous year, with growth across all lending segments [4]. - Customer deposits increased by 5%, totaling £17.04 billion, driven by growth in personal savings and corporate deposits [5]. Capital and Liquidity - The CET1 ratio improved to 16.1% before a £125 million dividend, compared to 15.9% the previous year, and after accounting for the expected dividend, the CET1 ratio stood at 14.9%, remaining above the medium-term target range of 13% to 14% [5]. Management Commentary - The CEO highlighted the company's resilient profitability and lending balance growth, along with significant net inflows into savings products, while maintaining a strong capital and liquidity position [2]. - The company emphasized a disciplined approach to cost management and capital allocation to ensure long-term resilience and growth [4].

Core Insights - Ultimate Finance has appointed Paul Hansen as the asset finance sales director to enhance its broker-first growth strategy and leadership team following record expansion in its asset finance loan book [1][4]. Group 1: Appointment and Responsibilities - Paul Hansen brings over 30 years of experience in asset finance sales, having held senior roles at Novuna Business Finance, Aldermore Bank, and Shawbrook Bank [2]. - Hansen's responsibilities will include leading the asset finance sales strategy, driving new business growth, and improving engagement with the broker network [2]. Group 2: Company Performance - Ultimate Finance reported its highest ever half-year origination results, with £126 million ($170 million) in new business lending, a 15% increase compared to the same period in 2024 [4]. - The company's lending book grew to £357 million in the first half of the year, indicating positive results across all business sectors [5]. Group 3: Product Enhancements - Ultimate Finance increased its maximum invoice finance facility size from £7 million to £10 million to meet larger funding needs [5]. - The company introduced enhancements in its bridging finance offerings, including reduced pricing on development exit facilities and a new light-touch refurbishment option with up to an 85% day-one loan-to-value ratio [6].

Core Insights - The Group's financial results for the first half of 2025 show resilient performance and strategic progress, aligning with management expectations during a two-year transition period [2][11][32] - The net loan book increased by 1.2% to £25.4 billion, supported by a 10% growth in originations to £2.1 billion [6][12][54] - Profit before tax decreased by 20% to £192.3 million, primarily due to lower net interest income and a fair value loss on financial instruments [13][39] Financial Performance - Net interest income was £337.0 million, down 5% from £353.5 million in H1 2024, with a net interest margin (NIM) of 230 basis points [6][41] - Administrative expenses rose to £131.4 million, a 4% increase from £126.2 million in H1 2024, leading to a cost-to-income ratio of 40.3% [6][46] - Return on tangible equity (RoTE) was 13.7%, down from 17.4% in the prior period [6][17] Loan Book and Originations - The Group's loan book diversification strategy continued, with significant growth in originations across Commercial, Asset Finance, Residential Development, and Bridging segments [4][19] - Buy-to-Let lending remained the largest segment, accounting for 69% of the total gross loan book, down from 70% at the end of 2024 [21][70] - Total originations for H1 2025 reached £2.1 billion, a 10% increase compared to £1.9 billion in H1 2024 [6][76] Capital and Liquidity - The Common Equity Tier 1 (CET1) capital ratio was strong at 15.7%, down from 16.3% at the end of 2024 [6][60] - Retail deposits increased by 3% to £24.6 billion, contributing to the repayment of £730 million of TFSME funding [6][55] - The Group's liquidity coverage ratio was 167%, significantly above the regulatory minimum [56][58] Dividend and Shareholder Returns - An interim dividend of 11.2 pence per share was declared, representing a 5% increase from 10.7 pence in H1 2024 [6][52] - The Group's strategy aims to support both net loan book growth and further capital returns to shareholders [31][35]