Charter Court Financial loan book rises in Q3
By Michele Maatouk
Date: Tuesday 13 Nov 2018
(Sharecast News) - Charter Court Financial posted a rise in its loan book for the third quarter on Tuesday and a stable net interest margin performance.
The loan book was up 24.7% year-on-year in the third quarter to £6.2bn, 14.7% higher year-to-date, or 25.2% excluding the impact of structured asset sales.
New loan originations were stable at £0.7bn in the quarter but ticked up to £2.1bn for the nine months to 30 September from £2bn in the same period a year ago. Meanwhile, customer deposits were up 14.1% year-on-year to £4.5bn.
The company said it expects gross organic originations for FY 2018 to be marginally ahead of its previous guidance of £2.7bn, while the loan book is expected to grow in excess of 20%, including structured sales. In addition, Charter Court expects a stable net interest margin and credit performance, in line with the half-year performance.
Chief executive officer Ian Lonergan said: "I am pleased to report another strong quarter as we continued to see robust demand for our specialist lending proposition leading to further balance sheet growth and returns, while maintaining exemplary credit performance. We are continuing to see solid demand for our buy-to-let and specialist residential mortgages which is feeding a strong pipeline into the final quarter of 2018.
"With our robust capital position, scalable and bespoke underwriting platform together with our sophisticated credit risk and funding expertise, we are well placed to meet or exceed all our stated full year guidance."
Shore Capital noted that since listing at a price of 230p per share in September 2017 the group has delivered a strong operational performance.
"With demand from professional buy-to-let landlords remaining strong, we see this momentum continuing. We believe that question marks around the quality of earnings, reflecting the inclusion of structures asset disposal gains above the line and a very low impairment ratio, are already more than discounted in the current share price. We therefore reiterate our positive stance noting our last published fair value of 455p (53% upside)."
At 1035 GMT, the shares were up 0.6% to 300.26p.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN