Charter Court Financial Services Group plc (LON:CCFS), today announced Q1 2019 trading update
Strong balance sheet growth maintained
· Loan book up 17.9% year-on-year to £6.5 billion at 31 March 2019 (31 March 2018: £5.5 billion) or 28.1% to £7.1 billion excluding the impact of structured asset sales in the quarter
· Record first-quarter new loan originations of £710 million (Q1 2018: £668 million) with strong performance across core buy to let, residential and short-term mortgage segments
· High asset quality and strong credit performance maintained in the quarter
Optimal funding mix maintained
· Continued benefit of dynamic funding strategy leveraging customer deposits, wholesale and central bank facilities
· Customer deposits up 29.7% year-on-year to £5.6 billion at 31 March 2019 (31 March 2018: £4.3 billion)
· Residual interest in two securitisations sold for a pre-tax gain of £30 million in January 2019
Well-capitalised for continued growth
· CET1 ratio of 16.3% (unaudited)
Ian Lonergan, CEO of Charter Court, said:
“I am pleased to report another strong quarter as we continued to deliver on our robust mortgage pipeline to generate record first quarter originations while maintaining high asset quality and strong credit performance. Despite a challenging macroeconomic and market backdrop, the Group completed the sale of its residual interest in two securitisations in January for a pre-tax gain of £30 million, equivalent to a 5.3% premium on the underlying £564 million of mortgage assets.
“Our performance in the first quarter continues to reflect the resilience of our lending operations and demonstrates our ability to structure and execute complex transactions, even in difficult market conditions.”
Charter Court notes that it expects to publish its Scheme Document in connection with the all-share combination with OneSavings Bank plc later today.