These numbers mark the maiden set of results from recently listed Charter Court Financial Services (CCFS). The challenger bank writes buy-to-let and specialist residential mortgages, and is largely a product of the last financial crisis, having been founded under the name Precise Mortgages in 2008. It’s this specialism that still drives the business today: loan book growth of 41 per cent to £5.4bn reflected a marked increase in buy-to-let and specialist residential mortgage origination volumes. This, mixed with what the group calls its “efficient funding strategy”, led to a 65 per cent surge in net interest income, as well as an improvement in the net interest margin from 3.08 per cent to 3.19 per cent.
Post IPO, the group’s balance sheet also looks very different. Raising £20m at admission has helped, but so did cancelling the entire share premium – which gave retained earnings a massive boost. It’s perhaps no surprise, then, that return on equity rose from 18.7 per cent to 28.6 per cent year on year.
Analysts at Peel Hunt expect pre-tax profit of £122m for 2018, giving EPS of 37.8p, compared with £112m and 34.9p in 2017.
| CHARTER COURT FINANCIAL SERVICES (CCFS) | ||||
| ORD PRICE: | 298p | MARKET VALUE: | £713m | |
| TOUCH: | 298-300p | 12-MONTH HIGH: | 337p | LOW: 228p |
| DIVIDEND YIELD: | nil | PE RATIO: | 9 | |
| NET ASSET VALUE: | 140p | LEVERAGE: | 19 | |
| Year to 31 Dec | Total operating Income (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2014** | 31.0 | -1.4 | na | na |
| 2015** | 78.2 | 27.1 | na | na |
| 2016 | 144 | 48.9 | 16.8 | nil |
| 2017 | 211 | 112 | 35.0 | nil |
| % change | +47 | +128 | +108 | - |
| Ex-div: | na | |||
| Payment: | na | |||
| **Pre IPO figures | ||||
