Aldermore owner mulls splitting group as Investec circles banking unit

FirstRand is considering splitting Aldermore after bids emerged for its banking business that exclude its motor finance arm, MotoNovo. The sale has narrowed to a handful of bidders, with Investec among those pursuing the bank, while the division’s losses and potential compensation costs complicate the process.

Lloyds and a joint bid from Warburg and Cerberus are also reported to remain in the running. RBC analysts estimated the wider group could be worth £1.1bn to £1.6bn. MotoNovo booked a £153.2m charge for historical motor finance commissions and a £151.6m loss for the year to June 2026; the wider industry compensation scheme is valued at £9.1bn.