Charter Court Financial Services Group plc
Charter Court Financial Services — H1 2018 Earnings Presentation
17 slides from Charter Court Financial Services's earnings presentation, Aug 21, 2018
Slide 1: Charter Court Financial Services Group PLC H1 2018 Results
Charter Court Financial Services Group PLC H1 2018 Results 21 August 2018
Slide 2: Performance Highlights – H1 2018
Performance Highlights – H1 2018 1,357 1,305 Underlying 28% Gross Originations 25% Cost : Income (£m) Ratio1,2 (%) H1 17 H1 18 H1 17 H1 18 5,719 Gross Customer 4,432 Cost of Risk3 (%) Loans (£m) 0.00 % 0.03 % H1 17 H1 18 H1 17 H1 18 93 3.17% 3.08% 61 Net Interest Underlying Profit Margin4 (%) before
Slide 3: Supportive Market Backdrop in H1 2018
Supportive Market Backdrop in H1 2018 UK BTL Mortgage Volumes A supportive funding market in H1 UK RMBS spreads 4 100 Volume (£bn) Basis Points 3 80 2 60 40 1 20 Dates of CCFS Issuance in H1 0 - Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 House purchase Remort
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 Improving Efficiency Gross Loans to Customers 1,609 2,497 2,737 1,305 1,357 180 5,6751 6,2825 6,000 5,385 5,719 120 124 £m 5,000 4,432 86 4,000 3,823 £m 60 40 3,000 21 31 1,952 2,000 0 19 CAGR: 34% 25 1,000 0 H1 15 H1 16 H1 17 H1 18 2015 2016 2017 H1
Slide 6: Summary Financials – Income Statement
Summary Financials Income Statement H1 17 vs. H1 18 Change Commentary Y/e 31-Dec (£m) H1 18 H1 17 £m % Interest income 127 97 30 31% 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 (43)
Slide 7: Summary Financials – Balance Sheet
Summary Financials Balance Sheet Commentary H1 17 vs. H1 18 Change 1› Continued strong growth in loan book Y/e 31-Dec (£m) H1 18 H1 17 £m % ‒ Year on year net loan growth of 29% principally driven by over 50% Net customer loans 1 5,694 4,416 1,278 29% increase in BTL balances Liquid assets 1 2 989 1
Slide 8: Segmental Results - BTL
Segmental Results - BTL Originations Gross BTL Loan Book Evolution H1 2018 Originations £m £m 3,541 2891 3,9 1,453 1,592 3,252 2,5 25 £1,357m 836 2,176 801 41 756 855 BTL 61% 2015 2016 2017 H1 17 H1 18 2015 2016 2017 H1 17 H1 18 Average Average Loan 4.5% 4.2% 4.0% 4.1% 4.1% LTV: Size: 74.0% £168k Bo
Slide 9: Segmental Results – Specialist Residential
Segmental Results – Specialist Residential Originations Gross Residential Loan Book Evolution H1 2018 Originations £m £m Residential 27% 771 1,745 1,5 1,4 £1,357m 663 1,293 12 489 16 356 363 828 2015 2016 2017 H1 17 H1 18 2015 2016 2017 H1 17 H1 18 5.1% 5.0% 4.8% 4.8% 4.9% Average Average Loan LTV:
Slide 10: Segmental Results – Bridging Loans
Segmental Results – Bridging Loans Originations Gross Bridging Loan Book Evolution H1 2018 Originations £m £m Bridging Loans 10% 314 £1,357m 262 287 219 218 206 204 162 189 131 2015 2016 2017 H1 17 H1 18 2015 2016 2017 H1 17 H1 18 9.8% 9.3% 8.8% 9.0% 8.7% Average Average Loan LTV: Size: Book Yield1
Slide 11: Segmental Results – Second Charge
Segmental Results – Second Charge H1 2018 Originations Gross Second Charge Loan Book Evolution Originations £m £m Second Charge 2% £1,357m 95 169 161 174 149 57 60 80 31 27 2015 2016 2017 H1 17 H1 18 2015 2016 2017 H1 17 H1 18 Average Average Loan 6.2% 5.6% 5.1% 5.2% 5.2% LTV: Size: 71.1% £54k 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 2018 Retail › Retail channel continues to deliver in-flows at attractive funding 1.6% › 2018 RMBS transactions priced insi
Slide 13: Confident on the Outlook for 2018
Confident on the Outlook for 2018 Guidance for 2018 Originations › Expect total organic originations of c. £2.7bn across our four product lines for FY18 Net Interest Margin › Greater than 300 bps for FY18 Cost Income Ratio › Expected to be better than medium term guidance, reflecting the impact of s
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) Leveraging Deep Credit Know-how and Proprietary Data Analytics… 5.4 5.5 5.7 4.3 4.4 4.8 …Participating in Attractive Secured Lending Markets… 2.4 2.8 3.3 3.8 1.5 1.6 1.9 Q2 15
Slide 16: Our Medium Term Targets Reinforced
Our Medium Term Targets Reinforced › Strong progress in H1 and remain confident on 2018 › Business goes from strength to strength - performing in-line or in excess of our IPO targets › Confident in our ability to continue to meet IPO targets whilst supporting a better dividend for shareholders Targe
Slide 17: Charter Court Financial Services
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