Mortgage demand drives Aldermore

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​​Challenger bank​ Aldermore Group reported a better​ ​than​ ​expected increase in full​ ​year pre​-​tax profit ​following an increase in mortgages and loans to small and medium-sized businesses.

​​Challenger banks are thriving amid customer dissatisfaction with traditional lenders following a series of banking scandals.​

​Aldermore said it had not yet seen a "significant" shift in customer behaviour because of Britain's increase in property tax, expected to come into effect in April, for those who buy a house in order to rent it and on second homes.

​The bank, founded in 2009 by a former Barclays executive with backing from AnaCap, said pre​-​tax profit rose 88 per​ ​cent to ​£​95​m for the year ​to​ Dec​ember​ 31.

Analysts were expecting the company to earn ​£​91.4​m.

Aldermore, which went public last March, said net lending to customers rose 28 per​ ​cent to ​£​6.1​bn in the year.

Aldermore's s​hares were trading up 6.4 per​ ​cent ​to​ 230​p this morning, outperforming the FTSE 350 Banks Index​.​