I am pleased to be able to report on a year of considerable progress and achievement for Charter Court.

Sir Malcolm Williamson,
Chairman

I am pleased to be able to report on a year of considerable progress and achievement for Charter Court.

Sir Malcolm Williamson,
Chairman

Charter Court Financial Service Group plc is the UK’s leading specialist mortgage lender, purpose built to meet increasing customer demand for specialist mortgages, attractive savings products, exceptional value and great service.

 

Strategic targets

Deliver high quality growth and sustainable and attractive risk-adjusted returns.

In pursuing its strategy, Charter Court aims to deliver high quality growth and sustainable and attractive risk-adjusted returns. The Group attempts to accomplish its aims by maintaining balance and delivering success across its key goals:

 

Our resilient performance during a period of regulatory change and political uncertainty is down to our strong business model, specialist focus and talented employees.

Ian Lonergan,
Chief Executive Officer
Strategic goal KPIs 2017 Target Delivery in 2017

Origination


Deliver sustainable balance sheet growth
Originations Stable from 2016 into 2017

£2.7 billion
(2016: £2.5 billion)

Loan book growth At least 20% growth in the medium term

40.9%
(2016: 95.7%)

Risk management


Maintain disciplined risk management
Cost of risk Sector leading through the cycle

0.011%
(2016: -0.002%)

Profitability


Conduct rigorous margin management
Net interest margin Broadly flat or marginally higher year-on-year in 2017

3.19%
(2016: 3.08%)

Cost income ratio Low 30s (%) in the short to medium term

Statutory: 34.1%
(2016: 47.6%)

Underlying: 31.2%
(2016: 46.4%)

Shareholders


Deliver shareholder value
Return on equity Mid 20s (%)

Statutory: 28.6%
(2016: 18.7%)

Underlying: 30.4%
(2016: 19.3%)

In addition to the financial targets above, the Group aims to develop two key non-financial goals:


Customer loyalty - we aim to deliver a quality service and product proposition to mortgage brokers and their customers and to retail depositors. Our efforts in this respect are reflected in our combined NPS of 67 (57 for mortgage customers and 70 for retail depositors).


Leading employer - the Group also aims to maintain its status as a leading employer, with low staff turnover and high staff engagement. The Group measures this by monitoring attrition rates, absence rates and training hours achieved and by asking employees to complete The Sunday Times Top 100 Companies to Work For survey each year. In 2017 we were ranked as the third best place to work in the ‘mid’ sized business category.


How we deliver our strategy

We operate in selected specialist mortgage markets where we can deploy our deep credit knowledge

£5.4bn
mortgage balances
£21.3bn
mortgages analysed since 2008

We deliver a quality service and product proposition to mortgage brokers and their customers

#1
UK's leading specialist mortgage lender
21,000
introducers registered with the Group
8 minutes
average time to Decision in Principle

We deploy consistent underwriting decisions efficiently to effectively mitigate credit risk

£27k
aggregate losses on mortgage lending since inception
0.1%
of the total loan book in arrears of three months or more
0.01%
cost of risk of total portfolio in 2017

We have an efficient and scalable, bespoke operating platform

34.1%
cost income ratio
31.2%
underlying cost income ratio

We have a dynamic and sophisticated funding strategy

£4.4bn
retail deposits
8
securitisation transactions since 2013
£977.8m
drawn from the Bank of England's Term Funding Scheme in 2017

We aim to deliver strong growth and sustainable returns to our shareholders

28.6%
return on equity
30.4%
underlying return on equity
All figures as at 31 December 2017, unless stated otherwise.