Together Financial Services has posted underlying profit before tax of £55.7m for the quarter to the end of September, alongside continued growth in its loan book and lending volumes.
It has reported a rise in lending and profitability for its latest quarter, with the loan book increasing to £8bn and average monthly lending reaching £270.6m. The group said the performance reflected sustained demand for its personal and commercial finance products.
Profit before tax rose 3.7% compared with the same period last year and increased 13.4% on the previous quarter. The lender said the quarterly improvement was driven by a lower impairment charge and reduced administrative expenditure.
Customer arrears remained broadly unchanged at 5.5%, the same level as the previous quarter.
Richard Rowntree, group chief executive officer, said: “We have delivered another strong performance during the quarter with the loan book reaching a new high of £8bn and underlying profit before tax up 4% on the same quarter last year to £55.7m.”
LENDING AND LOAN BOOK GROWTH
Average monthly lending rose to £270.6m, an increase of 6.6% on the previous quarter. Loan-to-value ratios remained conservative, with new originations averaging 60%. The total net loan book increased by 5.5% compared with the same quarter last year and by 1.3% on the previous quarter.
Indexed loan-to-value ratios remained stable at 55.7%, while arrears continued to hold steady.
INCOME AND PROFITABILITY
Interest receivable rose to £218.5m, an increase of 1.9% on the same quarter last year and up 1.7% on the previous quarter. The group said its underlying net interest margin remained attractive at 5.3%, supported by pricing discipline and funding strategy.
Underlying profit before tax reached £55.7m. The underlying cost to income ratio remained low at 30.4%, broadly unchanged from the previous period.
CASH GENERATION AND RISK
Cash receipts increased to £902.5m, reflecting what the group described as a strong quarter for redemptions. The annualised cost of risk stood at 0.96%, higher than the same quarter last year but below the level recorded in the previous quarter.
STRATEGIC DEVELOPMENTS
The lender said it had made progress on its multi-million-pound system transformation programme, which has now entered the testing phase. The group has also strengthened its executive team and board with several senior appointments, including Andy Higginson as non-executive director and Dave Sutherland and Cheryl Brough in newly appointed executive roles.
Rowntree said the broader economic picture remained mixed, citing expected interest rate cuts alongside inflationary and global pressures. However, he added that long-term demand in the group’s markets continued to support its strategy.
