Shawbrook 99 Regulatory News (PH56)

Shawbrook Group plc - Q3 2024 Trading Update

8 November 2024 - Shawbrook Group plc ('Shawbrook' or the 'Group') today issues its trading update for the nine months ended 30 September 2024 ('Q3 2024').

Performance highlights:

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The Group's loan book grew by 18% on an annualised basis to £15.1 billion (31 December 2023: £13.3 billion), driven by strong net lending volumes across our core specialist real estate and SME markets.

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We further strengthened our funding base, with the deposit book growing at an annualised rate of 16% to £15.2 billion (31 December 2023: £13.6 billion).

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The overall quality of the loan book remained robust. Credit risk metrics remain within risk appetite, with an arrears ratio of 2.8%1 (31 December 2023: 2.3%).

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Maintained strong surplus capital resources, with a Common Equity Tier 1 (CET1) ratio of 12.6% (31 December 2023: 12.9%) and a total capital ratio of 15.5% (31 December 2023: 16.4%).

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The acquisition of JBR Auto Holdings Ltd., which completed in September after receiving regulatory approval, demonstrates our ability to accelerate our strategy through inorganic expansion.

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In October we announced the successful completion of a £399 million securitisation of owner-occupied loans originated by Bluestone Mortgages Limited. The transaction was structured to provide both external funding and capital optimisation benefits.

Marcelino Castrillo, Chief Executive Officer, commented:

"Demand for the premium experience, flexibility and certainty we offer across our specialist lending markets remains robust, with both our loan and deposit books exceeding £15 billion for the first time.

We have maintained our focus on re-weighting our lending mix while leveraging our agility in the deposit market, contributing to a stronger underlying return on tangible equity for Q3. Credit risk metrics remain comfortably within our risk appetite, with the arrears ratio broadly stable since H1 24.

Investment in the continuous evolution of our proposition to stay ahead of customer needs, expectations and trends remains our strategic focus. Our innovation in the deposit market, with the development of our Digital Savings platform, is an illustration of this approach. This proprietary technology gives us complete control of the experience we deliver, with intuitive digital journeys and more self-service options. I am delighted with the response we are seeing from customers as the upgraded service is rolled out.

As we look ahead, we continue to see promising opportunities for expansion and value creation across our core markets, including SME and Real Estate. The combination of an exceptional customer franchise, a more stable macroeconomic outlook and increasing customer confidence means we are well positioned to continue to deliver on our strategic ambitions throughout the remainder of 2024 and beyond."

Footnotes:

1.

Loans that are equal to or greater than two payments in arrears (includes all term expired).

For investor enquiries, please contact:

Murray Long

Head of Investor Relations

murray.long@shawbrook.co.uk

For further information, please contact:

Oscar Burnett

Teneo

shawbrook@teneo.com

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.