By Ian Walker and Margot Patrick

LONDON--Aldermore Group PLC reported on Tuesday a 50% rise in 2014 net profit and said it still hopes to float on the London Stock Exchange, while denying it has had any talks with TSB Banking Group PLC (TSB.LN).

The fast-growing British bank, which pulled its London float plan last October, made a net profit of 38.4 million ($58.59 million) for the year ended Dec. 31, 2014, compared with GBP25.7 million a year earlier, after a similar revenue rise on its growing loan and mortgage books. Aldermore booked costs of GBP6 million for its failed IPO.

The cost to income ratio for the small business bank dropped to 60% from 66%, and Chief Executive Phillip Monks said it should fall below 40% by the end of 2017. Return on equity excluding the cost of last year's scrapped IPO was 15.1%, up from 11.6% in 2013, it said.

The Times reported on Sunday that TSB Group, which was spun out of Lloyds Banking Group PLC (LLOY.LN) last summer, has held takeover talks with Aldermore. However, the talks collapsed over a price disagreement, with Aldermore's private equity owners wanting more than GBP600 million, far more than TSB was prepared to pay, the Times reported on its website.

The British bank, which focuses on specialist lending to small- and medium-sized enterprises and homeowners, announced plans to raise GBP75 million and float last September, but pulled the plan less than a month later, blaming the "deterioration of global equity markets."

Mr. Monks told The Wall Street Journal on Tuesday that an IPO "continues to be our aim."

-Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749 and margot.patrick@wsj.com; Twitter: @margotpatrick

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