Aldermore Round Table

Small-Medium Enterprise Research for

Savings

29.05.12

Slide title

Introduction

Phillip Monks – Chief Executive

Aldermore‟s overview

Lending book to SMEs £850 million

Lending to Residential

Mortgages

£600 million with more than

4,500 customers

Retail Deposits £1.6 billion deposits and

over 70,000 deposit

accounts

Total Assets £1.9 billion

Raised additional

equity capital of £36

million from

Centerbridge Ltd

(May 2012)

Broke even two

months earlier than

planned & after only

two years of trading

(June 2011)

Aldermore – „Shaking-up‟ British Banking

A new, dynamic and vibrant bank, offering straightforward products to the consumer, combined with

great value and service to UK small and medium sized businesses (SMEs)

We're unencumbered by debts, legacy issues, historic loan books, securitisation, nor are we linked to

international capital markets. We use a traditional banking model: raising deposits from

consumers, and lending to homeowners and SMEs across the UK. It's that straightforward

Championing simple and straightforward products – no gimmicks or tricks

Tailored funding solutions to help achieve customers’ goals

Adopting the strategy of assessing cases based on their own merit rather than

relying on automatic credit scoring

Our awards

Specialist Lender of the Year

NACFB -Specialist Lender of

the Year 2010 Bridging & Commercial

Awards „Best Commercial

Lender' in 2010 & 2011

Moneynet “Highly

Commended” Best Online

Savings Provider 2012

Business Moneyfacts Highly

Commended „Best Factoring &

Invoice Discounting Provider‟

2011

What Mortgage Winner

„Best non-standard product

provider‟

mortgageforce™

„Best Emerging Lender

„ 2011

& Highly Commended

Best Advisor only lender

Best ISA provider 2011

Best ISA provider 2012

5 Stars Award

(Residential Mortgages)

Moneyfacts Highly Commended

„Best Notice Account Provider‟

2011

Highly Commended „Best Fixed

Rate Provider‟ 2010

Best Specialist Lender 2011

FT Adviser 5 Stars Award

(Residential Mortgages)

Moneyfacts Highly

Commended

„Best Notice Account

Provider‟

2010

SME champions

All of our retail deposits are lent to UK homeowners & SMEs

As a UK-based bank, we're committed to supporting British SMEs. We

appreciate the importance of SMEs to the UK economy, and the huge

challenges recent years have presented and unlike other banks that are

retrenching, we are accelerating:

Fuel card – 3p discount

Aldermore Business Confidence (ABC) – a tool to manage

budget and cash flow

Difficult times for SMEs

Seen as the engine of the economy, SMEs are struggling to get out of neutral in the

current recession climate

Over 60% of SMEs are holding on to an average of £190,000 in the bank to act as a

buffer in case of future financial difficulty, rather than investing in growth*

Almost 50% of SMEs feel that the economy is too uncertain to invest in growth and are

waiting for a change in the economic picture**

As Champions of the SME market and experts within the savings industry, we felt we

knew we could do something better

In addition, Aldermore wanted to understand why customers weren’t active within the

business savings market

* Source: Venture Finance Survey

**Source: YouGov

Savings Research

Simon Healy – Head of Savings

YouGov Research - Methodology

Online survey of 1,011 UK senior business people in small businesses by

YouGov

Asked about:

Satisfaction with current savings account provider

Considerations of switching savings account provider and factors that

influence decision

Respondents: Proprietor, Chairman, CEO, Partner, Managing Director, Non-

Executive Director, amongst others

Businesses are dissatisfied with current provider

Interest rates on my savings account(s) are competitive

90% Disagree

10% Agree

Satisfaction with current customer service

69% Not satisfied

31% Satisfied

Satisfaction with current savings account(s)

91% Not satisfied

9% Satisfied

Businesses will switch if it‟s easy and the rates are

good

Process of switching savings account(s) provider

80% Switching is complicated

20% Switching is relatively simple

Would switch due to competitive interest rates

58% Yes42% No

Customers‟ Channel Preferences

Customers’ Support Channel Preference Score

Account Opening Preference Score

A solution from Aldermore Bank.

Simon Healy – Head of Savings

Introducing Aldermore Business Savings

A deliberately simple offer.

Great rates

Online account opening & maintenance

Customer Service

Great returns, effortlessly.

Launching Shortly…

Products & Features

1 Year Fixed Rate Business Savings Bond 3.25% gross/AER

6 Month Fixed Rate Business Savings Bond 2.35% gross/AER

Open an Account electronically with just £1000

Complete account opening online in 15 mins

14 Day Cooling Off / Additional Funding

Closing words from CEO Phillip Monks

Conclusion

We have continued to lend during a period of significant

retrenching and economic downturn

We are British champions

Experts in the SME market and savings industry

We recognise that SMEs are underserved

Launching business savings is our first step to shaking-up British

banking for ever

Q&A‟s

SME savings accounts

www.aldermore.co.uk/business-savings

Find out more.

Appendix I

4% 6%14%

19%25%

25%

7%

Age of business

up to 1 year

1 to 2

>2 to 5

>5 to 10

>10-20

>20-50

69%

15%11% 6%

Size of business

1 to 9

10 to 19

20 to 34

35 to 49

*

*

*Source: YouGov

Appendix II

Phillip Monks - Chief Executive Officer • Established Europe Arab Bank in 2005

• 2003 - CEO of Gerrard Investment Management

• 1990-1998 - held senior roles in Barclays Bank, including Head of Barclays

Private Bank in Geneva; Head of Corporate Banking in NW; and latterly Head

of Barclays Corporate Banking business in London, Midlands & SE

• At Aldermore Phillip is responsible for the overall strategy and performance of

the Bank, financial and non-financial. He leads our relationship with our

shareholders and is the face of Aldermore when it comes to the media, the

FSA, the Government and potential investors.

Simon Healy - Head of Savings • Prior to joining Aldermore, Simon was director of savings at Heritable Bank

and Icesave

• Previously Simon was Senior Savings Operations Manager at Capital One

• Working closely with the treasury and finance functions, Simon is

responsible for Aldermore’s straightforward range of savings products that

provide our customers with consistently reliable rates of interest.

Appendix III-A

Appendix III-B

Appendix III-C

Appendix III-D

Appendix III-E