Shawbrook retains full-year outlook as grows loan book and deposits

(Alliance News) - Shawbrook Group PLC on Thursday said its first quarter performance was "strong" and asset quality "robust" as it reported growth in its loan book and higher deposits.

The Essex, England-based digital banking platform said its loan book increased 2.6% to GBP19.7 billion in the three months to March from GBP19.2 billion the year prior, as deposits grew 1.9% to GBP18.7 billion from GBP18.4 billion.

The CET1 ratio rose to 12.6% from 12.4%, with a total capital ratio of 14.9%, up from 14.8%.

Chief Executive Marcelino Castrillo said financial performance was "strong" in the quarter, while asset quality remained "robust".

Three-month-plus arrears were 1.7% compared to 1.6% a year ago, "within management expectations".

"We see attractive opportunities for growth within the specialist markets we serve, underpinned by a [total addressable market] of [around] GBP300 billion, CEO Castrillo added.

For 2026, Shawbrook forecast a loan book of around GBP21 billion, cost to income ratio of below 38%, a CET1 ratio - pre-Basel 3.1 - of greater than 13.2% and an underlying return on tangible equity of around 17%.

In addition, Shawbrook reiterated medium-term guidance for loan book growth of low double digits; cost to income ratio of mid 30s; underlying pretax profit growth of mid-high teens; underlying return on tangible equity of high-teens; a maiden ordinary dividend in respect of FY26 results and a CET1 ratio of 12% to 13%.

Shawbrook traded 0.5% higher at 310.50 pence each in London on Thursday.

By Jeremy Cutler, Alliance News reporter

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