Charter Court first-half profit and loans rise; inaugural divi announced

21st Aug 2018 07:46

(Sharecast News) - Charter Court Financial Services posted a rise in first-half profit on Tuesday as loans rose and the company announced an inaugural dividend.In the six months to 30 June, pre-tax profit increased 57% to £93.1m, while net interest income rose to £84.4m from £65.3m in the same period last year. The loan book was up 29% on the year to £5.69bn and the company announced an inaugural dividend of 2.8p per share, reflecting a payout ratio of 25%.Charter said that of the £1.4bn of new originations during the period, growth was primarily delivered through the continued uptake of its buy-to-let and specialist residential mortgage propositions, as it captured increased demand for professional buy-to-let products and non-standard residential mortgages.The company said it continues to see robust demand for its specialist lending proposition, which it expects to translate into further growth and returns in the second half of the year.Charter's cost income ratio reduced to 24.8% from 31% in the first half of last year, reflecting disciplined cost control and higher income, while return on equity increased to 38.4% from 34.1%, driven by structured asset sales.Chief executive officer Ian Lonergan said: "We continued to make progress in the first half of 2018, delivering against or exceeding all of our targets."Steady growth in our balance sheet was maintained, with originations driven primarily by the strong uptake of our specialist buy to let products designed for the growing sophistication of our chosen market segments."This positive result was achieved whilst controlling risk efficiently and effectively, maintaining the high quality of our mortgage book."Lonergan said the group remains well capitalised for future growth and on track to deliver against its medium-term targets.