Download full annual report 2018 Menu Despite heightened political and macroeconomic uncertainty due to the negotiations over the impending withdrawal of the United Kingdom from the European Union, Charter Court’s robust performance in 2018 demonstrates that the business remains resilient and able to deliver value for all our stakeholders. Sir Malcolm Williamson, Chairman Chairman's statement 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. Performance highlights Previous Next Performance highlights Full report Strategic targets 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: A strong performance across both our lending and funding operations is helping us to continue to meet or exceed all of the targets set out at the time of our IPO. Ian Lonergan, Chief Executive Officer Chief Executive Officer’s review Full report Strategic targets KPIs Medium term target Delivery in 2018 Origination Deliver sustainable balance sheet growth Originations Stable £2.8 billion (2017: £2.7 billion) Loan book growth >20% 24.2% (2017: 40.9%) Risk management Maintain disciplined risk management Cost of risk Sector leading through the cycle 0.036% (2017: 0.011%) CET1 Minimum 13% 15.7% (2017: 15.6%) Profitability Maintain high levels of operating efficiency Cost income ratio Low 30s (%) 28.7% (2017: 34.1%, adjusted 31.2%) Net interest margin Above 3% 3.08% (2017: 3.19%) Shareholders Deliver shareholder value Return on equity Mid 20s (%) 30.8% (2017: 28.6%, adjusted 30.4%) Dividend pay-out Minimum 25% pay-out ratio and progressive 25% (2017: nil) 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. 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 2018 we were ranked as the sixth best place to work in the ‘mid’ sized business category (2017: third) and were the highest placed bank for a second year. Strategic targets Full report How we deliver our strategy We operate in selected specialist mortgage markets where we can deploy our deep credit knowledge £6.7bn mortgage balances £7.8bn assets administered We deliver a quality service and product proposition tailored to mortgage brokers and their customers #1 UK's leading specialist mortgage lender 23,000 intermediaries registered with the Group 8 minutes average time to Decision in Principle We deploy consistent underwriting decisions to effectively mitigate credit risk £62k aggregate losses on mortgage lending since inception 0.2% of the total loan book in arrears of three months or more 0.0036% cost of risk of total portfolio in 2018 We have an efficient and scalable, bespoke operating platform 28.7% cost income ratio We have a dynamic and sophisticated funding strategy £5.1bn retail deposits 11 securitisation transactions since 2013 £150m drawn from the Bank of England’s funding schemes in 2018 We aim to deliver strong growth and sustainable returns to our shareholders 30.8% return on equity 25% dividend pay-out ratio for 2018 How we deliver our strategy Full report Downloads Full report Strategic report Corporate governance Financial statements Investor relations Our brands News Careers Contact us Legal notice Cookie policy Privacy Notice Terms and conditions Slavery and Human Trafficking Statement UK Finance - Help if you’re experiencing financial abuse Sitemap Charter Court Financial Services is a trading name of Charter Court Financial Services Limited which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register Firm Reference Number 494549). Registered in England and Wales with company number 06749498. Registered office: 2 Charter Court, Broadlands, Wolverhampton WV10 6TD. © 2021 Charter Court Financial Services By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyse site usage, and assist in our marketing efforts. Cookie Policy Cookies Settings Accept All Cookies