* Operating profit increases to 9.2 mln stg
* Gross lending up 34 percent to 2.7 bln stg
* Bank targeting acquisitions to accelerate expansion
By Matt Scuffham
LONDON, July 31 (Reuters) - New British bank Aldermorereported a surge in profit in the first half and said it wasseeking acquisitions to speed up its expansion, setting a targetto grow its balance sheet to 5 billion pounds ($7.6 billion) bythe end of 2014.
Aldermore, founded in 2009, has established itself as one ofthe more credible newcomers trying to challenge Britain'sestablished banks and potentially increase competition.
The bank, which made a profit for the first time last year,lends to small businesses and households and does not havebranches. It was set up by former Barclays executivePhillip Monks, with backing from private equity firms AnaCap andMorgan Stanley Alternative Investment Partners.
Monks told Reuters the bank wants to take advantage ofbigger banks scaling back to meet tougher regulatory demands.
"We have an appetite to grow by acquisition and organically.We have very supportive shareholders. There are two or threethings I'm casting my eye over," Monks said in an interview.
Barclays said on Tuesday it planned to shrink its loan bookby a further 65-80 billion pounds and Monks said he may look atopportunities arising from that. He said Aldermore aimed toexpand its balance sheet to 4 billion pounds by the end of thisyear and 5 billion pounds by the end of 2014.
Aldermore said on Wednesday it made an operating profit of9.2 million pounds in the six months to the end of June,compared with 1 million pounds last year. The bank reported a 34percent increase in gross lending to 2.7 billion pounds.
Aldermore said Chairman David Arculus is stepping down.Monks said a replacement is likely to be appointed in the nextquarter.
Barclays (BARC)
