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H1 2017
financial
performance
10 August 2017
H1 2017 financial performance
Introduction
H1 2017 financial
performance
Strategic progress
and outlook
Q&A Phillip Monks, OBE Chief Executive Officer
2
Maintaining a track record of consistent delivery Intro
3
We’ve made a strong
start to the year…
…with further strategic
progress…
…providing continued
confidence & improved
financial guidance
1 2 3
We’ve made a strong start to the year Intro
4
1
7.5
8.1
FY 2016 H1 2017
46
44
H1 2016 H1 2017
20 14
H1 2016 H1 2017
16
19
H1 2016 H1 2017
Customer driven new
lending growth
Net loan growth on
track for FY guidance
Cost/Income progress;
investment continues
Cost of risk remains
low & controlled
Ongoing organic CET1
capital generation
Generating high-teens
shareholder returns
11%
-2% 30bps 8%
-6 bps
1.5 1.6
H1 2016 H1 2017
11.5
11.8
FY 2016 H1 2017
3%
We’ve delivered further strategic progress Intro
5
2
Customer Driven
Helping more customers to seek and seize opportunities…
Our focus remains on growth in large markets through diverse pools of customer demand,
where we can operate as a service-focused specialist lender to meet customers’ needs
Simply Delivered
Enhancing the strength & efficiency of
our scalable operating model…
We continue to support the delivery of
growth with enhanced service & efficiency
Securely Managed
Maintaining a diverse business model
with robust risk management…
We retain our prudent risk appetite across
the bank, striking the right balance
between risk and reward
Our strategic priorities
6 1Prior year figures on an underlying basis. No adjustments made to HY 2017 reported figures.
Continued confidence and improved
financial guidance for 2017
Intro
3
Our focus remains risk-adjusted returns, maintaining risk appetite to find the right balance of profitable growth
Metric
Net loan
growth/ NIM
10 – 15% in 2017
Broadly stable NIM
Cost:Income1 < 40% over the
medium term
Cost of risk 25 – 35bps in the
coming years
Below range in
FY17
CET 1/ Dividend Target 12%
minimum
Above 12% by
FY 17
Return on
equity1
High teens ROE
over medium term
Guidance Performance Outlook
8%
60 51 45 44
2014 2015 2016 H1 2017
23 19 23 14
2014 2015 2016 H1 2017
35bps
25bps
11.8 11
11.5 11.8
2015 1H16 2016 1H17
-80bps +50bps
+30bps
15 20 18 19
2014 2015 2016 1H 2017
10% 15%
FY 2017 guided range
H1 2017
H1 2017 financial performance
James Mack Chief Financial Officer
7
Introduction
H1 2017 financial
performance
Strategic progress
and outlook
Q&A
Continued delivery against our financial objectives
• Generated return on equity of 19%, in line with guidance
• Net loan growth of over £600m, on track for FY 2017 guidance
• NIM remains broadly stable at 3.5%, in line with guidance
• Investment programme tracking in line with plans – cost/Income progress
continues
• Continued capital accretion, generating 30bps of CET1 capital in H1 – expect to
be above 12% CET1 by FY 2017
1
2
3
4
6
Financial headlines
2017 H1
update
8 1Underlying figures exclude exceptional items, in 2016 exceptional items include the Invoice Finance goodwill write off (£4.1m), in 2015 It includes IPO related costs (£4.1m, post tax £3.4m).
• Cost of risk 14bps, reflecting benign environment and robust risk management 5
Balance sheet growing in size and strength
£m 30 Jun 17 31 Dec 16 Var1 (%)
Net Loans 8,108 7,477 8
Cash and Investments 1,176 848 39
Fixed Assets 4 3 16
Intangible Assets 28 26 8
Total Assets 9,339 8,381 11
Customer Deposits 7,346 6,674 10
Wholesale Funding 1,214 982 24
Other Liabilities 100 99 1
Total Liabilities 8,661 7,755 12
Shareholder Equity 605 552 10
AT1 Capital 74 74 -
Total Equity 679 626 8
KPIs
Net loan growth 630 1,333
Loan to deposit ratio 110% 112%
CET1 ratio 11.8% 11.5%
TNAV per share 167p 153p
Summary Balance Sheet
Key comments
1
2
3
4
1
2
3
4
Net Loan growth £630m or 8%, on track for
year end guidance
- Over £0.6bn Business Finance new lending
- Over £1bn Mortgages new lending
Customer deposits up over 10% continuing to
fund asset growth
9 1Variances based on underlying data
3
2017 H1
update
Wholesale funding up over 20%, as we
expand usage of TFS, includes repayment of
£40m sub-debt and repayment of on-balance-
sheet FLS
Strong organic capital generation, up 30bps
in seasonally weaker half for capital generation
Risk appetite remains prudent, while organic
origination drives growth
1.5 1.5
3.3 3.8
0.9 0.9 0.2 0.2
1.6
1.7
2016 Origination Redemption 1H17
£7.5bn
£8.1bn
Net loan growth by segment
10 1Includes Property Development portfolio of £235m (2016: £229m)
27% opening
net loans (annualised)
+£0.6bn, 8%
+1.6 -1.0
2017 H1
update
£1.6bn origination drives
8% loan growth across
both Business Finance
and Mortgages
• Business Finance up 8%
to £1.9bn
• Mortgages up 9% to £6.2bn
• Looking ahead, we continue to
expect 10 – 15% growth for the
full year 2017, while maintaining
our risk appetite
Commercial Mortgages
Buy-to-Let Mortgages
Residential Mortgages
Asset Finance 21%
Business Finance Mortgages
Invoice Finance 2%
Mix Mix
12%
47%
18%
6,674
7,346
396
1,047
355 131
107
101
62
2016 1H 17
Growth and diversity in funding
Our funding strategy
remains deposit-led and
diversified
• Deposits up 10% to £7.3bn,
strong growth from corporates
• Repo FLS fully repaid, some
off balance sheet T bills remain
• TFS : 4-year money at base
rate, c£1bn drawn
• RMBS reduced 18% to £107m
• Tier 2 call: £40m high-coupon
notes called in May 2017
• Looking ahead, anticipate
operating with a loan to deposit
ratio of around 115% - 120%
Customer deposits and wholesale funding
110%
112%
£7.7bn
£8.6bn
404
1H 17
1,826
5,117
£7.3bn
Deposits FLS
RMBS
Sub debt & Other
% LDR
Retail SME
Corporate TFS, ILTR
~30%
Commercial
~70%
Retail
11
2017 H1
update
Capital continues to build; anticipate a CET1 ratio
above 12% by FY 2017
Continuing to build capital,
as profitability outstrips
balance sheet growth and
seasonal charges
• Generation of c30bps organic
capital in H1 drives 11.8% CET1
• Total capital of 14.9% (2016:
15.6%) remains strong
- Leverage remains robust
at 6.9% (2016: 7.0%)
• Consideration for dividends:
- Growth opportunities
- Greater regulatory clarity
- Economic environment
Aldermore capital ratio walk (%)
12
2017 H1
update
11.0
11.5 11.8
11.8
1.5
1.6
H1 16CET 1
Profit RWA FY2016
OpsRisk
AT1 Profit RWA H1 17CET 1
TotalCapital
Annual charges
on capital
AT1
Tier 2
14.9
CET1
Note: Organic capital generation involves small adjustments to profit
+50bps +70bps
-40bps
Anticipate being above 12%
CET 1 ratio by FY 2017
Profits up over 30% driving a 19% ROE
£m H117 H116 Var2 (%)
Net interest income 136 116 17
Other operating income 14 12 15
Operating income 150 128 17
Underlying expenses (66) (58) (13)
Impairments (6) (6) 13
Underlying PBT1 78 63 24
Exceptional items1 - (4) -
Profit before tax 78 59 32
Tax (20) (17) (20)
Profit after tax 58 42 37
KPI
Net interest margin 3.48% 3.57%
Cost/Income ratio1 44.1% 45.5%
Cost of risk 0.14% 0.20%
ROE 18.8% 16.3%
EPS1 14.8p 10.3p
Summary Income Statement
Key comments
1
2
3
4
1
4
2
Strong growth in average loans and
broadly stable NIM drive 17% increase in NII
5
5
3
13 1Underlying figures exclude exceptional items, in 2016 exceptional items include the Invoice Finance goodwill write off (£4.1m), in 2015 it includes IPO related costs (£4.1m, post tax £3.4m). 2Variances based on underlying data
2
3
2017 H1
update
Underlying expenses increase 13%,
reflecting investment, while cost/income
improves to 44%
Loan impairments fall by 13% as cost of risk
remains low at 14bps
Profits up 32% demonstrating continued
strong, sustainable returns
Strong improvement in reported ROE
at 19%, up 2.5ppts
Cost of funds continuing to fall, driven by broadly
stable deposit pricing and benefits from TFS
The cost of new deposits
has remained stable over
the first half of 2017, TFS
usage driving further benefit
1Cost of funds calculated as interest expense / average net loans on a 2-point average basis. Component parts calculated as interest expense over monthly average funding balance. FLS includes off-balance sheet commitments 2Includes Retail, SME and Commercial deposits average pay rate of monthly inflows
14
Cost of funds1 (%) Average rate paid (%)
1.78
0.72
1.52
16.90
1.39
0.25
1.38
12.50
Deposits BoEschemes
RMBS Tier 2
Inflow cost of deposits2 (%)
2015
Group
1H17 1H16
2017 H1
update
1.5 1.6
1.8 1.7
1.4
1.2 1.2
1.0
1.2 1.2
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J
2016 2017
1.45 1.85
• Increased diversification of
funding, including TFS at 25bps
• Call of Tier 2 instrument will
drive full year benefit in 2018
• Further benefits from declining
deposit costs over H2 2016 and
increased drawings under TFS
Gross yield reflects lower funding costs and
the competitive environment
Gross asset yield by portfolio, %
5.0 4.7
1H 16 1H 17
4.9 4.5
1H 16 1H 17
6.9 6.7
1H 16 1H 17
5.4 4.9
1H 16 1H 17
6.2 5.4
1H 16 1H 17
4.3 4.0
1H 16 1H 17
Group AF IF
RM BTL CM
15
2017 H1
update
Group gross yield down
50bps from 5.4% to 4.9%:
• The base rate reduction H2
2016 and lower cost of funds
across the market
• Finer margins in Asset
Finance, driven by competition
and mix toward high-quality
wholesale lines
• Competitive BTL market, with
rates reflecting lower cost of
funds
• Increased competition and
HTB rolling-off in Residential
Mortgages
Pricing dynamics in lending and funding markets
resulting in a broadly stable net interest margin
Competitive pressures
largely driven by funding
savings
• NIM reduced slightly by 9bps,
driven by pricing pressure and
anticipated mix toward BTL
• Anticipate a broadly stable NIM
over 2017 at c3.5%
Net interest margin walk, 1H16-1H17 (%)
3.6 3.5
(0.5) 0.4
1H 16 Assetpricing
Fundingbenefit
1H 17
16
2017 H1
update
Continued improvement in operating leverage,
whilst continuing to invest in franchise capability
Greater operating leverage
has been driven by strong
top-line growth ahead of
cost base inflation
• Reported and underlying
cost/income improved to 44%
for the half year 2017
• Anticipate additional £15 -
£20m costs in 2017 versus
FY 2016, reflecting investment
in mandatory projects and
strengthening of our teams
• Cost/income1 trending < 40%
over the medium term
Operating income and underlying1 costs (£m), Cost/income1 (%)
Operating income Underlying1 expenses % Cost/income ratio1
17
£105m
£128m
£150m
£56m £58m
£66m
30
35
40
45
50
55
60
65
70
75
0
20
40
60
80
100
120
140
160
1H 15 1H 16 1H 17
53%
46%
44%
1Underlying figures exclude exceptional items, in 2016 exceptional items include the Invoice Finance goodwill write off (£4.1m), in 2015 it includes IPO related costs (£4.1m, post tax £3.4m)
2017 H1
update
Benign environment and robust risk management
reflected in low and controlled cost of risk
Cost of risk remains well
within risk appetite
• The cost of risk remains robust
at a group level at 14bps,
remaining low and controlled
across our portfolios
• Reduced impairment reflects the
benign economic environment
and extension of the emergence
period for collective provisions
introduced in H1 2016
• Expect to normalise in the
coming years at 25 – 35bps
- Anticipate a cost of risk
below this range for FY 2017
Cost of risk by portfolio (%)
0.12 0.12
1H 16 1H 17
0.07 0.10
1H 16 1H 17
0.20 0.14
1H 16 1H 17
0.34 0.24
1H 16 1H 17
1.27
0.27
1H 16 1H 17
Group AF IF
RM BTL
18
0.27 0.13
1H 16 1H 17
CM
£1.9m £0.2m £0.6m £1.9m £0.9m
£5.6m
H1 2017 Impairment charge (£m)
Total:
2017 H1
update
Strategic progress and outlook
19
Phillip Monks, OBE Chief Executive Officer
Introduction
H1 2017 financial
performance
Strategic progress
and outlook
Q&A
20
Providing specialist banking for customers
and strong, sustainable returns for shareholders
Strategy
Delivering a sustainable high-teens return on equity for shareholders
Banking as it should be: Helping people to seek and seize opportunities in their professional and personal lives
1
Efficient
distribution
2
Specialist
underwriting
3
Straightforward
savings
4
Expert risk
management
5
Dynamic
service
Our DNA, to be Reliable, Expert, Dynamic and Straightforward underpins our approach
Providing specialist banking in selected segments of the UK market
Our strategic priorities: Customer driven, Simply delivered, Securely managed
0.20 0.14
Cost of risk (%)
0.48 0.43
Non performing loans (%)
11.5 11.8
CET1 (%)
13.5 14.5
Liquidity ratio (%)
1H 2017 FY 2016
21
Managing risk is central to what we do and remaining
securely managed is a key pillar of our strategy
Risk
Maintaining standards to deliver growth
• Consistent, centrally controlled underwriting standards
• Stress-test affordability at origination
• Rescore portfolio monthly; no concerning trends
Prudent management of growing balance-sheet
• Strong and growing CET1 capital position
• Diversified lending and funding portfolios
• Healthy levels of liquidity
Remaining vigilant to a changing environment
• Horizon scanning & review of early warning indicators
• Review and reporting against emerging risks
• Agility to change risk appetite where justified
Robust management of risk across the bank
Note: Comparative for cost of risk presented as HY 2016
Liquidity ratio presented as total liquidity buffer as a proportion of funding liabilities, please see page 25 of the press release for more detail
22
We provide £1.9bn of financing to support the
growth and cash flow of the UK’s SMEs
Business
Finance
Investing in
service
Expanding
market
opportunity
• Expansion in Wholesale (+50%)
• Strategic partnership with AFS
• Vendor/ dealer strategic
roadmap
• Ongoing digital investment
• Launched “We back you”
broker service commitment
• Simplified/standardised broker
journey, enhancing efficiency
Asset Finance Strategic progress Enhanced
proposition
Expanding
market
opportunity
Refocused
strategy
• Partnering to provide supply
chain finance
• Expanding internal sales force
• Launch block bridging
• Football finance
• Contract finance
• Expansion of construction
finance & Asset Based
Lending
• Increased profitability
• Lower risk profile
• Higher quality clients
• Cross-sell opportunity
Invoice Finance Strategic progress
23
We help SMEs, investors, landlords and homeowners
access the property market with over £6bn of financing
Mortgage
Investing in
service
Capturing and
expanding the
market
opportunity
Mortgages franchise strategic progress
• Enhanced service, including new intermediary website and dedicated underwriting
contacts
• First-movers in Underwriting guides for professional Buy-to-Let landlords
• Strong progress in loyalty offering and retention strategy
• Broker Centre of Excellence launched in Commercial Mortgages
• Strong growth in Buy-to-Let, continuing to gain market share
• Healthy Q2 application volumes in Buy-to-Let, with healthy pipeline heading in to Q3
• Well positioned to capitalise on upcoming regulatory changes
• Continuing to explore lending into retirement opportunity in Residential
• Strong uptake of MIG product, with guarantees on all residential lending >80% LTV
• Enhanced self-employed proposition
We’re on track to exceed 2017 financial targets but
remain conscious of uncertain economic environment
Outlook
24
Delivering a high-teens
ROE1 over the medium term
Net loan growth
• 10 – 15% in 2017
Net interest margin
• Broadly stable in 2017
at 3.5%
Cost/income
• Trending below 40% over
medium-term
Cost of risk
• 25 – 35bps medium term
• Below range in 2017
Capital and dividend
• Growth opportunities
• Greater regulatory clarity
• Economic outlook
• CET1 > 12% by FY 2017
Banking as it should be
1Underlying
H1 2017 financial performance
25
Phillip Monks, OBE Chief Executive Officer
Introduction
H1 2017 financial
performance
Strategic progress
and outlook
Q&A
26
27
Appendices Appendix
28
Balanced organic origination Appendix
Asset Finance Invoice Finance SME Commercial Buy-to-Let Residential
£16bn
3.6%
68% 62%
32% 38%
1H16 1H17
£509m
£583m
15%
53% 43%
47% 57%
1H16 1H17
£19m
£24m
26%
84%
75%
16%
25%
1H16 1H17
£210m
£150m
(28)%
83%
86%
17%
14%
1H16 1H17
£519m
£695m
34%
93% 93%
7%
7%
1H16 1H17
£243m
£193m
(21)%
£22bn
< 1%
£22bn
<1%
£18bn
4.0%
£101bn
< 1%
Aldermore Origination by channel, Intermediated Direct
H1 2017 Market size and Aldermore estimated share
FLA to May 2017,
Aldermore estimate
ABFA, Aldermore estimate DeMontford University, Aldermore
estimates
CML, Aldermore estimates CML, Aldermore estimates
Direct includes referral
Plant &Machinery
CommercialVehicles
Loans Cars Soft assets Other
0 - 50k 50k -100k
100k -150k
150k -200k
200k -300k
300k -400k
400k -500k
500k -1m
1m - 2m 2m+
29
Securely
Managed Asset Finance displays diverse UK coverage, small-
ticket loans and strong tangible collateral
Average balances across the portfolio around £35k
Tangible collateral backing c80% of the portfolio
c35k
Average Balance
Key underwriting criteria
• All criteria (Exposure, Term
Collateral Value Gap (CVG)) are
asset dependent
• Customer affordability is the
primary assessment criteria, with
the asset value assessed where
applicable (n/a for soft assets or professional loans)
9%
17%
18%
10% 14%
10%
8%
16%
Greater London
South East
Midlands
East Anglia
North West
South West
Yorkshire
Other
Diverse UK coverage
80%
Tangible collateral
60% lending
< £100k
Strong collateral, with
robust secondary markets
£1.7bn
Other includes North East, Scotland, Wales and Norther Ireland
0 - 50k 50k -100k
100k -150k
150k -200k
200k -300k
300k -400k
400k -500k
500k -1m
1m - 2m 2m+
30
Securely
Managed Our Residential Mortgages portfolio supports a broad
customer base and benefits from high collateral values
The portfolio is highly granular with £140k average balance
c140k
Average Balance
Key underwriting criteria
• Max exposure: £1m (to 75% LTV)
• Stress affordability
• Max LTV: 95% purchase
(80% remortgage)
• Term: 10 – 35 years
• Exclude self-build and
right-to-buy
5%
21%
16%
12% 14%
10%
8%
15%
Greater London
South East
Midlands
East Anglia
North West
South West
Yorkshire
Other
Lending by geography
66% lending < £200k
0 - 50% 50 - 60% 60 - 70% 70 - 75% 75 - 80% 80 - 85% 85 - 90% 90 - 95% 95 - 100%
98% balances over 85% LTV covered by guarantee
69% Average LTV, 60% excl. HTB
£1.5bn
Other includes North East, Scotland and Wales
0 - 50% 50 - 60% 60 - 70% 70 - 75% 75 - 80% 80 - 85% 85 - 90% 90 - 95% 95 -100+%
0 - 50k 50k -100k
100k -150k
150k -200k
200k -300k
300k -400k
400k -500k
500k -1m
1m - 2m 2m+
31
Securely
Managed Diversity in the BTL portfolio reflects the geographic
footprint and house prices in the broader market
c80% of loans at £50k - £400k, with only <5% above £1m
Average LTV of 64%, with < 5% of balances over 80%
c175k
Average Balance
Key underwriting criteria
• Max individual exposure: £1m
standard, £10m professional
• Maximum LTV: 80%
• Term: 6 – 35 years
• Stress test affordability in line with
PRA requirements
35%
23%
8%
10%
7%
8% 4% 5%
Greater London
South East
Midlands
East Anglia
North West
South West
Yorkshire
Other
Lending by geography
64%
Average LTV
< 5% over 80 LTV
£3.8bn
Other includes North East, Scotland and Wales
0 - 50% 50 - 60% 60 - 70% 70 - 75% 75 - 80% 80 - 85% 85 - 90% 90 - 95% 95 - 100%
0 - 50k 50k -100k
100k -150k
150k -200k
200k -300k
300k -400k
400k -500k
500k -1m
1m - 2m 2m+
32
Securely
Managed Commercial Mortgages average balance is £500k
underpinned by high levels of tangible collateral
Average balances around £0.5m
Highly-secured with c70% portfolio sub 60% LTV
c500k
Average Balance
Key underwriting criteria
20%
17%
13% 7%
12%
14%
6%
10%
Greater London
South East
Midlands
East Anglia
North West
South West
Scotland
Other
Lending by geography
52%
Average LTV
£0.9bn
• Max individual exposure: £10m
• Maximum LTV: 75%
• Term: 5 – 20 years
• Stress test affordability
Other includes North East, Yorkshire and Wales
33
Risk weighted asset density Appendix
30 June 2017 31 December 2016
Risk weighted asset density (%)1
Asset Finance 70% 70%
Invoice Finance 68% 68%
SME Commercial Mortgages 116% 121%
Buy-to-Let 37% 38%
Residential Mortgages 39% 38%
Credit risk weighted asset density 54% 56%
Total risk weighted asset density2 52% 55%
1Risk weighted asset density = Risk Weighted Assets / Net Loans 2Total risk weighted asset density = Total risk weighted assets/ Total Assets
34
Online, dynamic savings franchise Appendix
Retail Deposits
13%
15%
20%
19%
17%
6% 2% 8%
H1 2017
5 year
4 year
3 year
2 year
1 year
ISA
EA
Notice
Retail Balance:
61%
5%
24%
1% 8%
H1 2017
CFRA
1Y Flex SME
1Y SME
6M SME
EA
£5.1bn £1.8bn
Product mix:
SME Balance:
Product mix:
35
This document contains certain forward-looking statements with respect to the business, strategy and plans of Aldermore Group PLC (“Aldermore”)
and its current goals and expectations relating to its future financial condition and performance. Such forward-looking statements include, without
limitation, those preceded by, followed by or that include the words "targets", "believes", "estimates", "expects", "aims", "intends", "will", "may",
"anticipates", "projects", "plans", "forecasts", "would", "could", "should" or similar expressions or negatives thereof. Statements that are not historical
facts, including statements about Aldermore’s, its directors’ and/or management’s beliefs and expectations, are forward-looking statements. By their
nature, forward-looking statements involve risk and uncertainty because they relate to events and depend upon circumstances that will or may
occur in the future. Factors that could cause actual business, strategy, plans and/or results to differ materially from the plans, objectives,
expectations, estimates and intentions expressed in such forward-looking statements made by Aldermore or on its behalf include, but are not
limited to: general economic and business conditions in the UK and internationally; market related trends and developments; fluctuations in
exchange rates, stock markets, inflation, deflation, interest rates and currencies; policies of the Bank of England, the European Central Bank and
other G8 central banks; the ability to access sufficient sources of capital, liquidity and funding when required; changes to Aldermore’s credit ratings;
the ability to derive cost savings; changing demographic developments, and changing customer behaviour, including consumer spending, saving
and borrowing habits; changes in customer preferences; changes to borrower or counterparty credit quality; instability in the global financial
markets, including Eurozone instability, the potential for countries to exit the European Union (the “EU”) or the Eurozone, and the impact of any
sovereign credit rating downgrade or other sovereign financial issues; technological changes and risks to cyber security; natural and other
disasters, adverse weather and similar contingencies outside Aldermore’s control; inadequate or failed internal or external processes, people and
systems; terrorist acts and other acts of war or hostility and responses to those acts; geopolitical, pandemic or other such events; changes in laws,
regulations, taxation, accounting standards or practices, including as a result of an exit by the UK from the EU; regulatory capital or liquidity
requirements and similar contingencies outside Aldermore’s control; the policies and actions of governmental or regulatory authorities in the UK, the
EU or elsewhere including the implementation and interpretation of key legislation and regulation; the ability to attract and retain senior
management and other employees; the extent of any future impairment charges or write-downs caused by, but not limited to, depressed asset
valuations, market disruptions and illiquid markets; market relating trends and developments; exposure to regulatory scrutiny, legal proceedings,
regulatory investigations or complaints; changes in competition and pricing environments; the inability to hedge certain risks economically; the
adequacy of loss reserves; the actions of competitors, including non-bank financial services and lending companies; and the success of Aldermore
in managing the risks of the foregoing.
Any forward-looking statements made in this document speak only as of the date they are made and it should not be assumed that they have been
revised or updated in the light of new information of future events. Except as required by the Prudential Regulation Authority, the Financial Conduct
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