Firstrand Limited · JSE:FSR
Firstrand — Aldermore Group — Debt Investor Presentation (May 2024)
17 slides from Firstrand's debt investor presentation, May 2024
Slide 1: Aldermore Group PLC Credit Update
May 2024 Aldermore Group PLC Credit Update Information Classification: Confidential
Slide 2: Overview & Strategy
Overview & Strategy Information Classification: Confidential WSS 220512 May FR Board - Aldermor ...
Slide 3: Successful Story of Organic and Inorganic Growth
Successful Story of Organic and Inorganic Growth Jul 2009 Nov 2009 Jun 2012 Retail deposits Absolute Invoice SME business May 2009 launched Finance acquired deposits launched Founded by CEO Philip Monks with backing from AnaCap Financial Partners LTD May 2009 Oct 2009 Apr 2010 April 2014 Asset Finan
Slide 4: Transparent Ownership Structure and Governance
Transparent Ownership Structure and Governance OTHER WHOLLY-OWNED FirstRand Acquisition of Aldermore: SUBSIDIARIES OF FIRSTRAND LTD • Aldermore investment case solid LISTED HOLDING COMPANY (FIRSTRAND LIMITED, JSE: FSR) ~80% • Attractive margins assets 100% FirstRand Bank Limited • Diversified asset
Slide 5: Benefits to Aldermore Group of FirstRand Ownership
Benefits to Aldermore Group of FirstRand Ownership Access to best-in-class Close collaboration Stable, strongly capitalised financial resource across the group and highly liquid parent management disciplines • Product returns assessed on marginal, and • Able to tap technical resources at • Current A
Slide 6: Experienced Leadership Team
Experienced Leadership Team Executive Directors Aldermore Group CEO since 2021. Former Aldermore Group CFO since May 2022. Former CEO at C. Hoare & Co. Before this spent 30 CFO at TSB for 5 years, Finance Director at the years at Barclays, leading several of its major Bank of England, and Finance Di
Slide 7: Strategy for Sustainable and Controlled Growth
Strategy for Sustainable and Controlled Growth Structured and Property Motor Savings Specialist Finance • Focus on delivering personalised • Strengthening core offering to • Offer distinctive, specialist lending • Expand core capability in the relationship management to help improve returns personal
Slide 8: Purpose-led participation
Purpose-led participation Present in Markets with Attractive Fundamentals, Requiring Specialist Expertise Property Finance Motor Finance Structured and Specialist Retail Savings Finance Addressable Market Size >£25bn ~£50-60bn ~£50bn ~£60bn Personal contract purchase Segment Owner Occupied and Buy t
Slide 9: Our Approach to ESG and Sustainability
Our Approach to ESG and Sustainability What is our Back more people to go for it, in life and business Purpose? Where do we focus our Financial Inclusion Financial Wellbeing Climate Change Economic Transformation impacts? Increasing access and usage of financial Empowering society to feel more confi
Slide 10: Track Record of Sustainable Profitable Growth and Financial Position
Track Record of Sustainable Profitable Growth and Financial Position Net loans (£bn) Profit before tax (£m) 223 14.7 15.2 Prudent approach with 205 13.4 increased provisioning 12.4 during Covid-19 158 10.6 134 49 FY2019 FY2020 FY2021 FY2022 FY2023 FY2019 FY2020 FY2021 FY2022 FY2023 Risk-adjusted mar
Slide 11: Diversified Portfolio and Established Position in the UK Market
Diversified Portfolio and Established Position in the UK Market £15.2bn Financial Highlights – 12 months to 30 June 2023 Owner Occupied (16%) Profit Before Tax Pre-provision Operating Net Interest Margin Profit Property £222.5m £335.8m 4.07% +9% YoY +28% YoY +0.28% YoY Finance Buy to Let (33%) Cost-
Slide 12: Conservative Capital and Liquidity Management
Conservative Capital and Liquidity Management Capital Ratios1 (% of Risk-Weighted Assets) Liquidity Coverage Ratio and Net Stable Funding Ratio3 (%) 17.7% 17.4% Regulatory Requirements2 Liquidity Coverage Ratio 16.7% 2.5% 1.5% 324% 1.6% 1.1% 14.1% 1.3% 1.1% 265% 11.7% 4.5% 224% 9.9% 4.5% 14.8% 4.5%
Slide 13: Successful Deposit-Led Funding Strategy with Focus on Diversification
Successful Deposit-Led Funding Strategy with Focus on Diversification Diversified funding platform And proven access to public wholesale funding 1% Oak No.1 £372m 6% Personal Savings April 2014 (redeemed) 7% Business Savings Additional Tier 1 Notes 12% Corporate Savings (Externally Issued) £75m £17.
Slide 14: Resilient Credit Performance
Resilient Credit Performance Gross Loans by Stage (£m) Financial year ended (£m) Jun-21 Jun-22 Jun-23 YoY YoY CAGR [22 vs. 21] [23 vs. 22] [FY21 - 23] 13,613 14,966 15,494 Stage 3 Stage 3 Stage 3 392 359 385 Gross Loans 13,613 14,966 15,494 1,353 528 7% Stage 2 Stage 2 Stage 2 1,038 1,086 1,352 Expe
Slide 15: Financial Performance & Outlook
Financial Performance & Outlook Information Classification: Confidential WSS 220512 May FR Board - Aldermor ...
Slide 16: Solid H1 2024 Performance
Solid H1 2024 Income Statement Summary Performance Change vs Change vs H1 2024 H2 2023 H1 2023 H2 2023 H1 2023 Aldermore Bank Total Income 223.7 241.9 217.7 (7)% 3% • Operating PBT for H124 up 17% vs. PY Operating Expenses (106.4) (115.1) (94.5) (8)% 13% • Despite a muted and more competitive market
Slide 17: Controlled growth, with strong capital, liquidity and funding
Lending and Funding Summary Controlled growth, Change vs Change vs with strong capital, Dec-23 Jun-23 Dec-22 Jun-23 Dec-22 liquidity and funding Property 7.5 7.5 7.6 0% (2)% maintained Motor 3.9 4.2 4.2 (6)% (6)% Structured & Specialist Finance 3.6 3.5 3.7 1% (3)% • Customer lending decreased £0.5bn
Aldermore Group — Debt Investor Presentation (May 2024) on 6ix