Shawbrook Q1 2024 Trading Update

Shawbrook Group PLC

15 May 2024

 

Shawbrook Group plc - Q1 2024 Trading Update
15 May 2024 - Shawbrook Group plc ('Shawbrook' or the 'Group') today issues its trading update for the three months ended 31 March 2024 ('Q1 2024').
Performance highlights:
•	The Group's loan book grew by 15% on an annualised basis to £13.8 billion (31 December 2023: £13.3 billion), driven by strong net lending volumes across our specialist real estate and SME markets.
•	We further strengthened our funding base, with the deposit book growing to £14.8 billion (31 December 2023: £13.6 billion), driven by seasonal ISA demand.
•	The overall quality of the loan book remained robust. Credit risk metrics remain within risk appetite with an arrears ratio of 2.5%1 (31 December 2023: 2.3%).
•	Maintained strong surplus capital resources, with a Common Equity Tier 1 (CET1) ratio of 12.7%2 (31 December 2023: 12.9%) and a total capital ratio of 16.0%2 (31 December 2023: 16.4%).
•	In May 2024 we announced the successful completion of our Lanebrook Mortgage Transaction 2024-1, a £557 million securitisation of buy-to-let loans originated and serviced by The Mortgage Lender Limited. The Simple Transparent and Standardised (STS) label transaction further supports our funding diversification strategy and reinforces our position as a solid repeat issuer in the debt capital markets.
Marcelino Castrillo, Chief Executive Officer, commented:
"We have started the year positively, with customers continuing to value the premium experience, flexibility and certainty Shawbrook delivers across our diverse markets. We continued to see strong growth in our loan book to £13.8 billion, driven primarily by demand across our specialist real estate and SME markets, whilst growing deposits to £14.8 billion. Our deep customer understanding continues to inform and drive service enhancements and product innovation, illustrated by the recent launch of our secured structured real estate proposition. Offering bespoke, relationship-led support to professional landlords, this service provides financing solutions for larger and more complex transactions. The macroeconomic landscape continues to evolve and we remain encouraged by the versatility of our 'best of both' model and the resilient performance we have delivered to date. Whilst we are seeing a gradual but notable improvement in sentiment across our specialist markets, our expert portfolio management teams continue to work closely with customers. Supported by our data-driven, forward-looking risk management frameworks, we closely monitor the outputs from targeted early warning indicators to identify and react quickly to any emerging risks. During the quarter we also progressed the roll-out of new cloud contact-centre technology across the Group, providing in-depth AI-driven sentiment analysis. Delivering brilliant customer experiences is increasingly reliant on data and advanced technologies as we serve more customers, more frequently across multiple channels. The breadth of our specialist offering and the flexibility of our platform will allow us to deliver for more customers in our chosen markets by combining the innovative mindset and agility of a start-up with the scale and financial strength of a large business."
Footnotes:
1.	Loans that are equal to or greater than two payments in arrears (includes all term expired).
2.	Excluding unverified profits, the Group's CET1 ratio and total capital ratio was 12.2% and 15.6% respectively.

For investor enquiries, please contact:

Murray Long

Head of Investor Relations

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For further information, please contact:

Joe Hughes

Teneo

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About Shawbrook

Shawbrook provides finance to a wide range of customers who value the premium experience, flexibility and certainty we deliver. We are a purpose-led organisation, with a focus on delivering long-term sustainable value for all our stakeholders. We have a diversified offering, with our innovative lending propositions tailored to meet specific customer needs in carefully selected markets across SME, Real Estate and Personal. Our innovative and specialist lending products range from complex structured credit facilities for growth-focused businesses to mortgages for professional landlords and property investors, as well as simple loans for consumers delivered digitally. We fuel our lending through customer deposits, which we attract by delivering a premium experience, choice and consistently great value to smart savers. The business model we have created is unique and difficult to replicate, with our 'best of both' approach combining deep human expertise with advanced digital, tech and data capabilities. This combination not only allows us to deliver excellent customer experiences, but to do so efficiently and at scale. We are proud of our innovative and agile culture, which drives consistently high employee engagement scores and makes Shawbrook an attractive destination for the best talent. The Group's lending activities are primarily funded by a stable retail deposit book consisting of easy access and ISA accounts, variable rate notice accounts and fixed rate fixed term accounts (mostly one - five years). Shawbrook Bank Limited is an operating entity of Shawbrook Group plc. Shawbrook Bank Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority and is a member of the Financial Services Compensation Scheme.

 

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