TIDMCCFS
RNS Number : 4186Q
Charter Court Financial Svs Grp PLC
06 June 2018
THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS
RESTRICTED AND NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN
WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED
STATES OF AMERICA, AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA OR ANY
OTHER JURISDICTION IN WHICH RELEASE, PUBLICATION OR DISTRIBUTION
WOULD BE UNLAWFUL.
Press release
6 June 2018
Charter Court Financial Services Group plc
Disposal of economic interest in Charter Mortgage Funding
2018-1 plc
Charter Court Financial Services Group plc ("Charter Court" or
the "Group") today announces it has agreed to sell its residual
economic interest in the Charter Mortgage Funding 2018-1 plc
securitisation ("CMF 2018-1") for a cash consideration of GBP13.8
million, payable on completion (the "Transaction").
CMF 2018-1 is the Group's latest securitisation and is due to
complete on 8th June 2018. The Transaction is expected to settle
before the end of June 2018 and will involve the sale of the RC1
and RC2 residual certificates (the "Certificates") to the
securitisation. Lloyds Bank Corporate Markets plc ("LBCM") is
managing the sale and settlement process.
The Transaction will generate a pre-tax gain of GBP21.3 million
which will be recognised in the first half of 2018 and will also
result in a reduction of mortgage assets and associated risk
weighted assets of the Group of approximately GBP285.5 million and
GBP100 million, respectively. The associated increase in the
Group's core equity tier 1 capital resources will be invested to
support new loan originations in its specialist lending segments
and ongoing business activities. The securitised mortgage assets
yielded interest income of c. GBP1 million in May 2018.
Both the Transaction and the CMF 2018-1 securitisation reflect
Charter Court's strategy of continuously monitoring the markets for
tactical opportunities to create shareholder value. Charter Court
remains on track to meet its net loan book growth target of at
least 20% in the medium term, adjusting for sales which result in a
de-recognition of assets.
Sebastien Maloney, CFO of Charter Court, said:
"This is another excellent transaction for Charter Court and is
a testament to the continued investor confidence in the quality of
our underwriting. As we have set out in our strategy, we take a
proactive approach to asset-liability and capital management and
will take advantage of favourable market conditions to execute
transactions that enhance our capital position, support further
loan growth and deliver shareholder value. The proceeds from the
transaction will be invested in pursuing further growth
opportunities. As we set out at our Q1 2018 trading statement, we
have had a strong start to the year and remain confident of
achieving our stated financial targets."
Background on CMF 2018-1
CMF 2018-1 is the securitisation of approximately GBP285.5
million of prime residential mortgages originated by Charter Court
Financial Services Limited.
At closing, CMF 2018-1 will sell all of the rated notes (classes
A, B, C, D, E and X notes) in the securitisation to third-party
investors.
The Transaction will result in the de-recognition of the
securitised mortgages and, as a liability, the rated notes from the
Group balance sheet.
Enquiries:
Analysts and investors
Charter Court Financial Services Group plc 01902 625929
Sebastien Maloney, Chief Financial Officer
Citigate Dewe Rogerson 020 7638 9571
Sandra Novakov
Michael Russell
Media
Citigate Dewe Rogerson 020 7638 9571
Andrew Hey
Caroline Merrell
About Charter Court Financial Services Group plc
Charter Court is one of the UK's leading specialist challenger
banks by originations, founded in 2008 by its senior management
team and purpose built to focus on specialist buy to let,
residential, bridging and second charge mortgage lending. We
operate through our three brands - Precise Mortgages, Exact
Mortgage Experts and Charter Savings Bank - providing buy to let
and specialist residential mortgages; mortgage servicing,
administration and credit consultancy; and retail savings
products.
We have continued to grow in our chosen markets and to translate
that growth into strong financial and operational performance. At
31 March 2018, our total mortgage balances stood at GBP5.5 billion
generated through our relationships with more than 21,000
intermediaries nationwide, whilst Charter Savings Bank had GBP4.3
billion in retail deposits at the same date from over 120,000
retail savings accounts.
Underpinning our success, our risk management expertise and
automated technology and systems ensure efficient processing,
strong credit and collateral risk control and speed of product
development and innovation. These factors have enabled our strong
balance sheet growth whilst maintaining the high credit quality of
our mortgage assets.
Charter Court was admitted to the main market of the London
Stock Exchange in October 2017 (CCFS.L). Charter Court Financial
Services Limited, a subsidiary of the Group, is authorised by the
Prudential Regulation Authority ('PRA') and regulated by the
Financial Conduct Authority ('FCA') and the PRA. Charter Mortgages
Limited, also a subsidiary of the Group, is authorised and
regulated by the FCA.
Important notices
This announcement contains statements which are, or may be
deemed to be, "forward-looking statements" which are prospective in
nature. All statements other than statements of historical fact are
forward-looking statements. They are based on current expectations
and projections about future events, and are therefore subject to
risks and uncertainties which could cause actual results to differ
materially from the future results expressed or implied by the
forward-looking statements. Often, but not always, forward-looking
statements can be identified by the use of forward-looking words
such as "plans", "expects", "is expected", "is subject to",
"budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates", "believes", "targets", "aims", "projects" or words
or terms of similar substance or the negative thereof, are
forward-looking statements, as well as variations of such words and
phrases or statements that certain actions, events or results
"may", "could", "should", "would", "might" or "will" be taken,
occur or be achieved. Such statements are qualified in their
entirety by the inherent risks and uncertainties surrounding future
expectations. Forward-looking statements include statements
relating to (a) future capital expenditures, expenses, revenues,
earnings, economic performance, indebtedness, financial condition,
dividend policy, losses and future prospects, (b) business and
management strategies and the expansion and growth of Charter
Court's operations, and (c) the effects of global economic
conditions on Charter Court's business.
Such forward-looking statements involve known and unknown risks
and uncertainties that could significantly affect expected results
and are based on certain key assumptions. Many factors may cause
actual results, performance or achievements of Charter Court to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. Important factors that could cause actual results,
performance or achievements of Charter Court to differ materially
from the expectations of Charter Court, include, among other
things, general business and economic conditions globally, industry
trends, competition, changes in government and other regulation and
policy, including in relation to the environment, health and safety
and taxation, labour relations and work stoppages, interest rates
and currency fluctuations, changes in its business strategy,
political and economic uncertainty and other factors as may be
identified in relation to the disposal. Such forward-looking
statements should therefore be construed in light of such factors.
Neither Charter Court nor any of its directors, officers or
advisers provides any representation, assurance or guarantee that
the occurrence of the events expressed or implied in any
forward-looking statements in this announcement will actually
occur. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof.
Other than in accordance with its legal or regulatory obligations
(including under the UK Listing Rules and the Disclosure and
Transparency Rules), Charter Court is not under any obligation and
it expressly disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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