Charter Court Financial Services Group plc
Charter Court Financial Services — H1 2019 Earnings Presentation
16 slides from Charter Court Financial Services's earnings presentation, Aug 21, 2019
Slide 1: Charter Court Financial Services Group PLC H1 2019 Results
Charter Court Financial Services Group PLC H1 2019 Results 21 August 2019
Slide 2: Performance Highlights – H1 2019
Performance Highlights – H1 2019 1,490 +4% Underlying 29% Gross Originations 1,357 25% Cost : Income (£m) Ratio1 (%) H1 18 H1 19 H1 18 H1 19 7,058 Gross Customer 5,719 Cost of Risk2 (%) Loans (£m) 0.03 % 0.08 % H1 18 H1 19 H1 18 H1 19 93 86 3.08% 3.04% Net Interest Underlying Profit Margin3 (%) befo
Slide 3: Supportive Market Backdrop in H1 2019
Supportive Market Backdrop in H1 2019 UK BTL Mortgage Volumes What we delivered in H1 2019: Buy to Let 4,000 › BTL completions outpacing market growth with an estimated market share of 4.9% Volume (£m) 3,000 › BTL completions driven by strong activity in the Specialist BTL sector, particularly for 2
Slide 4: Financial Performance
Financial Performance Sebastien Maloney Chief Financial Officer 4
Slide 5: Continuous Year-on-Year Growth
Continuous Year-on-Year Growth Strong Loan Growth Established Financial Delivery Gross Loans to Customers 180 2,497 2,737 2,846 1,357 1,490 124 123 5,6751 7,2241 6,2825 7,6225 6,683 5,719 7,058 120 6,000 5,385 86 £m 5,000 3,823 4,000 60 40 £m 3,000 25 31 36 2,000 0 19 1,000 H1 16 H1 17 H1 18 H1 19 0
Slide 6: Summary Financials – Income Statement
Summary Financials Income Statement H1 18 vs. H1 19 Change Commentary (£m) H1 19 H1 18 £m % Interest income 158 127 31 24% 1› Increase in Net Interest Income driven by robust loan book growth and CCFS’ ability to optimise funding costs through tactical retail deposit Interest expense (58) (43) (15)
Slide 7: Summary Financials – Balance Sheet
Summary Financials Balance Sheet H1 18 vs. H1 19 Change Commentary Y/e 31-Dec (£m) H1 19 H1 18 1› Continued strong growth in loan book £m % Net customer loans 1 7,047 5,694 1,353 24% ‒ Year on year net loan growth of 23.8% driven by strong origination 1 Liquid assets 2 1,109 989 120 12% volumes acro
Slide 8: Segmental Results - BTL
Segmental Results - BTL Originations Gross BTL Loan Book Evolution H1 2019 Originations £m £m 5,2301 564 3,5411 289 1,642 4,527 4,666 £1,490m 1,592 909 3,252 3,925 1,453 836 2,176 BTL 61% 2016 2017 2018 H1 18 H1 19 2016 2017 2018 H1 18 H1 19 Average Average Loan 4.2% 4.0% 4.2% 4.1% 4.3% LTV: Size: 7
Slide 9: Segmental Results – Specialist Residential
Segmental Results – Specialist Residential Originations Gross Residential Loan Book Evolution H1 2019 Originations £m £m 2,292 1,979 Residential 5631 25% 5631 £1,490m 771 825 1,745 1,946 663 1,729 1,416 363 376 1,293 2016 2017 2018 H1 18 H1 19 2016 2017 2018 H1 18 H1 19 5.0% 4.8% 4.9% 4.9% 5.1% Aver
Slide 10: Segmental Results – Bridging Loans
Segmental Results – Bridging Loans Originations Gross Bridging Loan Book Evolution H1 2019 Originations £m £m Bridging Loans 11% 250 314 322 244 287 £1,490m 219 204 168 206 131 2016 2017 2018 H1 18 H1 19 2016 2017 2018 H1 18 H1 19 9.3% 8.8% 8.4% 8.7% 8.1% Average Average Loan LTV: Size: Book Yield1
Slide 11: Segmental Results – Second Charge
Segmental Results – Second Charge H1 2019 Originations Gross Second Charge Loan Book Evolution Originations £m £m Second Charge 3% 183 196 £1,490m 95 169 174 149 60 57 27 37 2016 2017 2018 H1 18 H1 19 2016 2017 2018 H1 18 H1 19 Average Average Loan 5.6% 5.1% 5.1% 5.2% 5.4% LTV: Size: 67.4% £62k Book
Slide 12: CCFS’ funding strategy continues to optimise cost of funding
CCFS’ funding strategy continues to optimise cost of funding – taking tactical advantage of market conditions › Award winning deposit franchise Wholesale markets in focus for H1 2019 Retail › Retail channel continues to deliver in-flows at attractive funding 1.8% › £734m PMF 2019-1B completed in May
Slide 13: Capital and Liquidity
Capital and Liquidity Robust Capital and Liquidity Positions Capital Position Key Liquidity Measures (Jun-19) › CET 1 ratio of 15.6% as at 30 June 2019 › RWAs calculated using standardised risk weightings £675m LCR Requirement £887m HQLA 131% LCR › Well capitalised for future growth: ‒ Vast majority
Slide 14: Wrap-Up
Wrap-Up Ian Lonergan Chief Executive Officer 14
Slide 15: Our Strategy has Resulted in Continuous Growth Over the Last 3 Years
Our Strategy has Resulted in Continuous Growth Over the Last 3 Years Our Strengths Our Delivery Net Loans to Customers (£bn) Continued to deliver in line or in excess of our IPO targets 6.2 6.7 6.5 7.0 5.4 5.5 5.7 4.3 4.4 4.8 Charter Court goes from strength to strength as it takes 2.8 3.3 3.8 advan
Slide 16: Oma Financial Services
©, Charter Court Oma Financial Services MY NE = SAS aS
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