Shawbrook hails strong momentum amid lending and deposit growth

(Alliance News) - Shawbrook Group PLC on Thursday set out mid-term targets as it reported growth in loans and deposits in the first nine months of 2025.

Shares in the recently listed lender fell 1.6% to 379.00 pence each in London on Thursday, just above the 370p initial public offer price.

The Essex, England-based digital banking platform, founded in 2011, specialises in mortgages for professional landlords, property investors, and individual homeowners, as well as motor finance.

Unconditional trading in the bank started in November after its IPO which valued the firm at GBP1.92 billion.

In a trading update, Shawbrook said its loan book increased to GBP18.25 billion in the nine months ending September from GBP15.93 billion at the end of 2024, with growth supported by strong organic demand across both specialist commercial and retail markets and the acquisition of ThinCats.

Shawbrook completed the acquisition of ThinCats, a leading specialist lender to small and medium-sized enterprises at the end of September.

Deposits grew by 15% to GBP17.58 billion from GBP15.80 billion at the end of 2024.

Chief Executive Officer Marcelino Castrillo said the growth demonstrates "the strength of our business model and disciplined execution."

"We enter the final quarter of 2025 with strong momentum, a resilient balance sheet and a clear strategic focus. The group remains well positioned to continue to enhance our customer proposition, deliver against our medium-term targets and generate attractive, sustainable returns for shareholders," he added.

Shawbrook said credit quality remains stable, with an arrears ratio of 1.9%, up from 1.7% in 2024.

In addition, the adjusted underlying return on tangible equity remained "robust" at 17.8% compared to 17.5% in 2024.

The CET1 capital ratio was 12.6%, down from 13.0% at the end of 2024, and the total capital ratio was 15.1% compared to 15.9%.

Shawbrook said it continues to assess its exposure to historical regulated motor finance lending but anticipates any redress liability to be immaterial.

Looking ahead, the lender set out mid-term ambitions to grow the loan book by low double digits per annum, for mid-to-high teens growth per annum in underlying pretax profit and a CET1 ratio between 12.0% and 13.0%.

It also pledged a "progressive" dividend policy and a high teens percentage adjusted underlying return on tangible equity.

By Jeremy Cutler, Alliance News reporter

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