Together Financial Services has posted an 11% increase in underlying profit before tax for the three months to 31 March 2025, as the specialist lender continued to grow its loan book and generate robust returns.

The Manchester-based non-bank lender recorded a quarterly profit of £57.5m, up from £51.8m a year earlier, driven by a 13% rise in net interest income. This was supported by a stable net interest margin of 5.5%, unchanged from the previous quarter and year-on-year.

Turnover, measured as interest receivable and similar income, rose to £218.5m in the period, an 11% increase from £196.9m in Q3 2024. While this was slightly lower than the £220.2m posted in the preceding quarter, the group said it reflected continued resilience in its income-generating capabilities.

Together’s loan book reached a new high of £7.8bn, representing a 10.3% increase year-on-year and a 0.7% rise on the previous quarter. Lending remained conservative, with weighted average indexed loan-to-values at just 55.3%, and origination LTVs averaging 58.8%. Monthly lending volumes, however, declined to £248.1m — down 5.5% on the previous quarter and 12.4% lower than the quarter before that — reflecting a more cautious origination environment.

Cash receipts also remained strong at £900.1m for the quarter, slightly down on the previous quarter’s £913.4m but well ahead of the £730.5m recorded a year earlier. The group’s cost-to-income ratio remained low at 30.4%, improving from 32.2% in Q2 2025.

Richard Rowntree (pictured), group chief executive officer, said the business had delivered “another strong performance”, noting the group’s funding activities and growth pipeline as reasons for confidence. “We successfully raised or refinanced £2.5bn across five transactions during the quarter, as we continued to broaden our funding and raise additional liquidity to support our growth ambitions,” he said.

He added that demand for Together’s lending solutions remained healthy, with the new business pipeline up 21% on the previous quarter, even as the UK economic outlook remains mixed due to inflation trends, rate expectations and ongoing global trade tensions.

While the cost of risk increased slightly to 0.95% on an annualised basis — up from 0.83% in the previous two quarters — the group maintained its view that its lending portfolio remains well controlled. Arrears declined marginally to 5.6%, down from 5.7% in Q2 2025.

Rowntree said the group remained “cautiously optimistic” as it marks 50 years of lending, citing long-term structural demand for specialist finance and Together’s multi-cycle experience as key advantages.