Group remains cautiously optimistic amid economic uncertainty
UK non-bank lender Together Financial Services has reported a rise in lending and profits for the March quarter, buoyed by stronger net interest income and a continued expansion of its loan book.
Together noted an increase in its net loan book to £7.8 billion for the three months ending March 2025, marking a 10.3% rise from the same period last year.
The lender also posted an 11% year-on-year gain in underlying pre-tax profit, reaching £57.5 million. Net interest income climbed 13% from a year earlier, while the net interest margin remained steady at 5.5%.
Group chief executive Richard Rowntree (pictured) said the company had maintained a solid trajectory, supported by funding transactions and customer demand. “Together delivered another strong performance during the quarter with underlying profit before tax up 11% on the same quarter last year,” he said.
The group also raised or refinanced £2.5 billion in five separate deals during the quarter, aimed at broadening its capital base and supporting expansion plans. Rowntree added that the firm's transformation strategy is progressing, with a 21% increase in its lending pipeline over the previous quarter.
Average monthly lending reached £248.1 million, reflecting a decline from both the December and September quarters. However, the business maintained conservative lending practices, with a weighted average loan-to-value (LTV) on new originations of 58.8%, and indexed LTVs averaging 55.3%. Arrears also edged lower to 5.6%, from 5.7% in the previous quarter.
Despite the economic uncertainties, including geopolitical trade tensions, the company remains cautiously optimistic about the outlook for the UK lending market. “Together has a successful multi-cycle track record and long-term structural trends support an increase in demand for specialist lending solutions,” Rowntree said.
Other financial metrics showed underlying earnings before interest, tax, depreciation and amortisation (EBITDA) reached £170.9 million, up from £155.6 million a year ago. The underlying return on equity improved to 14.5%, while cost-to-income ratios remained low, with an underlying ratio of 30.4%. The company noted strong cash generation for the period, with cash receipts totalling £900.1 million.
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