Aldermore Share Discussion Threads

[igoe104] 23/10/2015 12:36

Positive write-up in the shares mag this week.

[future financier] 16/10/2015 15:44

I've got no agenda - except that currently I prefer other "challenger" banks - nevertheless I am watching all of them very carefully for opportunities. Kevph asked for possible reasons for fall in price - you came up with one (with no evidence to support it - but plausible none the less) - I came up with another (which had SOME evidence to support it - and there is plenty more similar stuff readily available but which is more speculative).

I admit I under-estimated OSB - but the jury is still out on this one - that's all I am saying.

[masurenguy] 16/10/2015 15:02

No, it was you who was suggesting that this was a "partial reason" for the fall in the shareprice. Companies streamline and lay off staff all of the time but there is no obvious correlation between implementing that process and the movement in the shareprice. You clearly have an agenda here which is to put a negative spin on anything.

[future financier] 16/10/2015 14:52

Are you suggesting that ALD staff will be happy that ALD are planning redundancies? Or are you trying to suggest that I got my facts wrong - quote was lifted from publicly available information published today.

Just trying to present FACTS that at least some people will find helpful.

[masurenguy] 16/10/2015 14:27

Yawn - we've already had the "guru Mark Stephens is leaving and the whole company will go to pot without him" scenario in #242 and now it's a "staff demoralisation" syndrome. Give it a rest.

[future financier] 16/10/2015 13:58

Partial reason maybe “Following a review, Aldermore is proposing to streamline its invoice finance team structure and this may unfortunately result in a reduction in the number of roles across our regional network,” Aldermore stated.

Still not a happy place to be and likely to become even less so.

[masurenguy] 16/10/2015 12:51

The price has been drifting down on modest trading volumes over the past 3 weeks. This is currently running at almost half their normal daily average so there is no institutional selling taking place. Therefore I view this as a good top up opportunity and entry level for new investors as nothing has changed since their interims some 6 weeks ago. Consequently I have added today.

It is possible that their largest shareholder, Anacap, have been selling small volumes of stock but we would not be able to identify this since they won't have to report any sells until they breach the 50% threshold. On the other hand if the government subsequently decide to raise the threshold for applying the 8% additional bank profit tax level to exempt the challenger banks, after further review, then this will really boost the shareprice.

[kevph] 16/10/2015 12:20

Anyone any idea what's going on here? Great trading update, share to £3. 90 days later and we're not far from £2.50. Thoughts anyone?

[mike740] 30/9/2015 10:17

Aldermore is often described as a "challenger" to the larger UK banking groups but in reality it is largely unaffected by them, Investec said.

At least in the short-to-medium term, that should continue to be the case, meaning the shares are trading at an excessive discount versus peers, analyst Ian Gordon wrote in a research note sent to clients.

The lender is primarily a mortgage/buy-to-let play with strong, sustainable loan growth (£1.4bn (or 36%) in the year to 30 June 2015), high returns (unleveraged RoE of 18.6% in H1 2015) and a rapidly improving cost-to-income ratio (53% in H1 2015, falling to 39% by 2017e).

"Clearly, current levels of low impairment (20bps) are flattered by both a benign environment, and growth. However, we think that Aldermore's disciplined adherence to prudent lending multiples should render this concern unfounded. 99% of its SME Commercial mortgage portfolio is sub-75% LTV."

Gordon initiated coverage on the lender with a 'buy' recommendation and a target price of 325p.

[future financier] 24/9/2015 10:55

All depends what you mean by debt! - See interim statement page 3

hxxp://www.investors.aldermore.co.uk/system/files/press/h1-2015-results.pdf

The most significant "debt" is the AT1 capital.

[ulinbac] 24/9/2015 10:23

How much debt does Aldermore hold?

[mazarin] 13/9/2015 19:55

As if we hadn't had enough, is there more bad news to come for Challenger Banks...? for details, see:

[mike740] 13/9/2015 17:25

Chancellor will drop 'challenger' bank levy, says Hermon

Neil Hermon, manager of top performing Henderson Smaller Companies trust, believes George Osborne will reverse decision to make all banks pay a levy.
by Gavin Lumsden on Sep 11, 2015 at 16:06 CityWire.

Speaking ahead of a meeting today between George Osborne (pictured) and new, small banks such as Aldermore (ALD +
), OneSavings (OSBO +
), Shawbrook (SHAW +
) and Virgin Money (VM +
), Hermon, a top-performing smaller companies fund manager, said a u-turn was likely.

The chancellor's decision to replace a previous levy on the Big Four banks with an 8% additional tax on all banks with profits above £25 million angered the so-called 'challengers'. They complained it would restrict their ability to lend and compete with the high street financial giants, a point that has been picked up by MPs on the influential Treasury Select Committee.

Osborne's move followed pressure from HSBC (HSBA +
) which had threatened to move its HQ to Hong Kong if its levy was not reduced.

Hermon (pictured above), manager of the Henderson Smaller Companies (HSL +
) investment trust, said: 'I suspect we could see a volte face. Clearly it's not what they intended to do.'

The manager pointed out extending the levy was at odds at the government's efforts to encourage new banking entrants and increase consumer choice. He added that the small banks had got caught in the 'crossfire' over the previous levy, imposed in response to the financial crisis and the taxpayer-funded bailouts of Lloyds and Royal Bank of Scotland.

Despite this mishap, Hermon believed prospects for the challenger banks was good, which is why he had bought into Aldermore and Virgin Money at their flotations.

[daveb12] 11/9/2015 17:11

I really think that govt have to give some concessions as they have promised to support challenger banks. Mr Osborne saying he will tax give or take all the same puts pressure on the challengers, If some relief can come here we should push up a few pence the same as it came down when it was announced a few months ago.

[mazarin] 11/9/2015 16:03

Thanks Kevph and on another front : Challenger Banks lose bid against new tax, but may gain some concessions, for more see:

[mike740] 11/9/2015 14:23

Banking a few profits, nothing sinister. AnaCap holds about 40% now, It did hold 52.9%.

All part of the business for these large funds.

Lets face it ALD as gained 53.5 percent since its debut on March 10.

[kevph] 11/9/2015 13:54

In case anyone missed it today and doesn't pay for the alliance news feed.Aldermore slumped following reports that two sellers, including AnaCap funds, were said to have sold 50.9m shares in the group via Deutsche Bank and RBC at 286p.

[mazarin] 11/9/2015 11:53

Challenger Banks lobby Treasury Officials, for more on this see :

[future financier] 11/9/2015 11:41

I don't think ALD is in this space.

[mazarin] 11/9/2015 09:47

Increased level of 'secured lending' (or Second Charge mortgages) is reported on here and seen as a rising market. Is this area part of ALD's current business? For info see:

[zho] 07/9/2015 19:07

Labour backs challenger banks in fight against George Osborne's new tax

Labour has demanded a review of a new tax that hits smaller banks alongside global behemoths

[zho] 30/8/2015 17:46

Challenger banks get chance to fight for tax cut

Britain's small lenders are going to meet top Treasury officials next week to argue for the latest tax hike to be reversed - but a letter from George Osborne shows they have a tough fight on their hands

[mazarin] 28/8/2015 17:33

Advfn chart is again inaccurate and ALD actually closed up today +1.07% to finish at 303.20p

However, on a wider note ahead of a meeting with the HM Treasury, Andy Golding, Chief Executive of OSB has made it known that he isn't confident that Challenger Banks will receive any relief against the sector's 8% bank surcharge announced in the Summer Budget, the charges are due to be levied on all Banks from 2016.

[steptoes yard] 28/8/2015 12:09

Am I the only person who thinks they could grow this to an EPS of £1 a share in 5 years without going beyond having 5% of a 206b lending market.?