Aldermore‟s overviewLending book to SMEs £850 million Raised additional equity capital of £36 million fromLending to Residential £600 million with more than Centerbridge Ltd Mortgages 4,500 customers (May 2012) Broke even two Retail Deposits £1.6 billion deposits and months earlier than over 70,000 deposit planned & after only accounts two years of trading (June 2011) Total Assets £1.9 billion
Aldermore – „Shaking-up‟ British BankingA new, dynamic and vibrant bank, offering straightforward products to the consumer, combined withgreat value and service to UK small and medium sized businesses (SMEs)Were unencumbered by debts, legacy issues, historic loan books, securitisation, nor are we linked tointernational capital markets. We use a traditional banking model: raising deposits fromconsumers, and lending to homeowners and SMEs across the UK. Its that straightforwardChampioning simple and straightforward products – no gimmicks or tricks Tailored funding solutions to help achieve customers’ goalsAdopting the strategy of assessing cases based on their own merit rather than relying on automatic credit scoring
Our awards Best ISA provider 2012 Specialist Lender of the Year FT Adviser 5 Stars Award Best ISA provider 2011 (Residential Mortgages) Moneyfacts Highly Commended „Best Notice Account Provider‟ 2011 Moneynet “Highly Commended” Best Online Savings Provider 2012 Best Specialist Lender 2011 Moneyfacts Highly What Mortgage Winner 5 Stars Award Commended „Best non-standard product (Residential Mortgages) „Best Notice Account provider‟ Provider‟ 2010 & Highly Commended Best Advisor only lender Business Moneyfacts Highly Commended „Best Factoring & Invoice Discounting Provider‟ 2011 mortgageforce™ „Best Emerging Lender „ 2011NACFB -Specialist Lender of the Year 2010 Bridging & Commercial Awards „Best Commercial Lender in 2010 & 2011 Highly Commended „Best Fixed Rate Provider‟ 2010
SME champions All of our retail deposits are lent to UK homeowners & SMEs As a UK-based bank, were committed to supporting British SMEs. We appreciate the importance of SMEs to the UK economy, and the huge challenges recent years have presented and unlike other banks that are retrenching, we are accelerating: Fuel card – 3p discount Aldermore Business Confidence (ABC) – a tool to manage budget and cash flow
Difficult times for SMEsSeen as the engine of the economy, SMEs are struggling to get out of neutral in thecurrent recession climateOver 60% of SMEs are holding on to an average of £190,000 in the bank to act as abuffer in case of future financial difficulty, rather than investing in growth*Almost 50% of SMEs feel that the economy is too uncertain to invest in growth and arewaiting for a change in the economic picture**As Champions of the SME market and experts within the savings industry, we felt weknew we could do something better In addition, Aldermore wanted to understand why customers weren’t active within thebusiness savings market* Source: Venture Finance Survey**Source: YouGov
YouGov Research - MethodologyOnline survey of 1,011 UK senior business people in small businesses byYouGovAsked about: Satisfaction with current savings account provider Considerations of switching savings account provider and factors that influence decision Respondents: Proprietor, Chairman, CEO, Partner, Managing Director, Non- Executive Director, amongst others
Businesses are dissatisfied with current provider Interest rates on my savings account(s) are competitive Satisfaction with current savings account(s) 10% Agree 9% Satisfied 90% Disagree 91% Not satisfied Satisfaction with current customer service 31% Satisfied 69% Not satisfied
Businesses will switch if it‟s easy and the rates are good Process of switching savings account(s) provider20% Switching isrelatively simple 80% Switching is Would switch due to competitive complicated interest rates 58% Yes 42% No
A solution from Aldermore Bank.Simon Healy – Head of Savings
Introducing Aldermore Business Savings A deliberately simple offer. Great rates Online account opening & maintenance Customer Service Great returns, effortlessly.
Launching Shortly… Products & Features 1 Year Fixed Rate Business Savings Bond 3.25% gross/AER 6 Month Fixed Rate Business Savings Bond 2.35% gross/AER Open an Account electronically with just £1000 Complete account opening online in 15 mins 14 Day Cooling Off / Additional Funding
Conclusion We have continued to lend during a period of significantretrenching and economic downturnWe are British championsExperts in the SME market and savings industryWe recognise that SMEs are underservedLaunching business savings is our first step to shaking-up Britishbanking for ever
SME savings accountsFind out more.www.aldermore.co.uk/business-savings
Appendix I Age of business 7% 4% 6% up to 1 year 14% 1 to 2 25% >2 to 5 19% 25% >5 to 10 >10-20 >20-50 Size of business * 11% 6% 1 to 9 15% 69% 10 to 19 20 to 34 35 to 49 **Source: YouGov
Appendix II Phillip Monks - Chief Executive Officer • Established Europe Arab Bank in 2005 • 2003 - CEO of Gerrard Investment Management • 1990-1998 - held senior roles in Barclays Bank, including Head of Barclays Private Bank in Geneva; Head of Corporate Banking in NW; and latterly Head of Barclays Corporate Banking business in London, Midlands & SE • At Aldermore Phillip is responsible for the overall strategy and performance of the Bank, financial and non-financial. He leads our relationship with our shareholders and is the face of Aldermore when it comes to the media, the FSA, the Government and potential investors. Simon Healy - Head of Savings • Prior to joining Aldermore, Simon was director of savings at Heritable Bank and Icesave • Previously Simon was Senior Savings Operations Manager at Capital One • Working closely with the treasury and finance functions, Simon is responsible for Aldermore’s straightforward range of savings products that provide our customers with consistently reliable rates of interest.