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Charter Court Financial Services Group plc

Charter Court Financial Services Group plc report another strong quarter

Charter Court Financial Services Group plc (LON:CCFS), today announced Q3 2018 trading update.

Continued strong balance sheet growth

· Loan book up 27.4% year-on-year to £6.2 billion (Q3 2017: £4.8 billion) and up 14.7% since 31 December 2017 or 25.2% excluding the impact of structured asset sales

· New loan originations of £0.7 billion in the quarter (Q3 2017: £0.7 billion) and £2.1 billion for the 9 months to 30 September (9M 2017: £2.0 billion)

· Strong asset quality and credit performance maintained in the quarter

Funding mix optimised in the quarter

· Customer deposits up 14.1% year-on-year to £4.5 billion at 30 September 2018 (Q3 2017: £3.9 billion)

· Continued focus on diversity of funding across customer deposits, wholesale and central bank facilities

· Successful launch of fixed rate products on both the Hargreaves Lansdown Active Savings and Flagstone platforms, enabling access to pooled retail funds, further diversifying funding optionality

Outlook

· With respect to our FY 2018 outlook:

– Gross organic originations expected to be marginally above our previous guidance of £2.7bn

– Expect to deliver loan book growth in excess of 20% (including structured sales)

– Stable NIM and credit performance in line with half year performance

– Continued strong capital generation, with CET1 ratio above 15%

Ian Lonergan, CEO of Charter Court, said:

“I am pleased to report another strong quarter as we continued to see robust demand for our specialist lending proposition leading to further balance sheet growth and returns, while maintaining exemplary credit performance. We are continuing to see solid demand for our buy-to-let and specialist residential mortgages which is feeding a strong pipeline into the final quarter of 2018.

“With our robust capital position, scalable and bespoke underwriting platform together with our sophisticated credit risk and funding expertise, we are well placed to meet or exceed all our stated full year guidance.”