Aldermore has announced that last year it provided over £1bIillon in new lending to SMEs, the backbone of the UK economy. The disclosure comes as the Bank releases its full year financial results for 2016.

Aldermore’s Business Finance division comprises Asset Finance and Invoice Finance. In 2016, net loan growth in Asset Finance increased by over £200m or 17% year on year to £1.6bn while Invoice Finance saw 19% year on year growth in originations and 56% increase in profit. The strong Business Finance performance comes as Aldermore announces another record year of profits and growth in both lending and deposits. Reported profit before tax increased by 36%, compared to 2015, to a record high of £129 million. At the same time, total net loans to customers increased by 22% during the year or £1.3 billion to £7.5 billion at the end of 2016. The loan growth was driven by record levels of organic origination across the Bank’s Business Finance and Mortgages divisions, which grew by 24% to £3.2bn. Aldermore’s lending continues to be primarily funded by its award-winning deposit franchise. In 2016, total deposits increased 16% to £6.7bn, with SME deposits rising by 18% to £1.6bn.

Carl D’Ammassa, Group Managing Director – Business Finance, Aldermore, said: “We have continued our track record of supporting the UK’s small businesses. As a result, increasing numbers of SMEs are choosing Aldermore to serve their borrowing needs which made 2016 a record year for Business Finance originations in which we extended over £1bn in new lending to the UK’s SMEs. In Asset Finance our expertise in a broad range of asset classes allowed us to maintain our leadership position in the competitive broker-introduced market, supporting an array of customer segments across a significant number of asset classes. We also expanded our wholesale proposition, with originations up approximately 60% year-on-year.

“In Invoice Finance, performance has significantly improved as a result of our focus on larger discounting facilities to SMEs, demonstrated by a 56% increase in segmental profit. We remain dedicated to helping SMEs seek and seize opportunities to grow. Our ability to differentiate Aldermore through the specialist nature of our underwriting, service and brand, positions us well and we continue to invest in further enhancing our service and digital capabilities to maintain and build upon this advantage.”