|
Shawbrook Group
plc
|
|
Interim Results for the
period ended 30 June 2024
|
|
London, 8 August 2024 - Shawbrook
Group plc ('Shawbrook' or the 'Group') today announces its Interim
Results for the six months ended 30 June 2024.
|
|
Financial highlights
|
|
•
|
Loan book grew by 15% on an
annualised basis to £14.3 billion (31 December 2023: £13.3
billion), following continued strong originations in our core SME
and property markets.
|
|
|
•
|
Further strengthened and diversified
our funding base, with deposits growing by 21% on an annualised
basis to £15.0 billion (31 December 2023: £13.6
billion).
|
|
|
•
|
Achieved an underlying profit before
tax of £124.5 million (30 June 2023: £149.3 million), with stronger
originations in our Retail Mortgage Brands' resulting in an
anticipated lower net interest margin from a different business
mix. We expect margins to widen as our origination mix re-weights
across all of our specialist lending markets.
|
|
|
•
|
The overall credit quality of our
loan book remained robust and credit risk metrics remain within our
risk appetite, with a cost of risk of 64bps (30 June 2023: 61bps)
and an arrears ratio of 2.7%1 (31 December 2023:
2.3%).
|
|
|
•
|
Maintained strong surplus liquidity
and capital resources, with a Common Equity Tier 1 (CET1) ratio of
12.6% (31 December 2023: 12.9%), a total capital ratio of 15.9% (31
December 2023: 16.4%) and a liquidity coverage ratio of 271.2% (31
December 2023: 262.8%).
|
|
|
•
|
Completed an additional retained
securitisation of £0.6 billion of The Mortgage Lender Limited (TML)
buy-to-let assets, providing further liquidity benefits to the
Group.
|
|
|
Strategic highlights
|
|
•
|
Signed an agreement to acquire JBR
Auto Holdings Ltd, a UK specialist motor finance lender focused on
high-end vehicles2.
|
|
|
•
|
Continued to invest in and
strengthen our digital capabilities, deploying innovative solutions
across the business to improve our customer
propositions:
|
|
|
|
⁰
|
Scaled our Lending Hub to process
c.40%3 of Real Estate cases, reducing the time to offer
by up to 70%4 for digital buy-to-let cases.
|
|
|
|
⁰
|
Further streamlined our Digital SME
customer journey and increased the maximum size of our term loan
product to £100,000, enabling us to widen our reach and serve more
customers at speed.
|
|
|
|
⁰
|
Progressed the roll-out of our new
Digital Savings experience to a select group of customers, with
early features resulting in a c.50%5 reduction in time
to open an additional online non-ISA account.
|
|
|
•
|
Diversified our product offering,
including the launch of our Structured Real Estate proposition
offering professional landlords a more bespoke, relationship-led
service for complex transactions up to £35 million.
|
|
|
•
|
Maintained strong colleague
engagement, achieving an engagement score of 84% in our latest
survey (2023: 84%).
|
|
|
Marcelino Castrillo, Chief Executive Officer,
commented:
|
|
"Following an exceptional 2023,
Shawbrook has delivered strong financial performance in the first
half of 2024 with loan book growth of 15% on an annualised basis to
£14.3 billion. Underlying profit before tax was £124.5 million,
with an underlying cost to income ratio of 42.1% and cost of risk
of 64bps.
The attractive returns we continue
to generate have been re-invested in our 'best of both' model,
combining innovative technology and data analytics with great
talent, enabling us to efficiently scale-up our specialist
proposition.
The number of customers we served
increased by more than a fifth to c.550,000 (H1 2023: c.450,000) as
we continued to expand our presence across a diverse range of
markets where customers value the premium experience, flexibility
and certainty we deliver.
Building on our track record of
successful acquisitions, we continue to leverage attractive
inorganic opportunities to accelerate our strategy and extend our
footprint in specialist markets. In June we signed an agreement to
acquire JBR Auto Holdings Ltd, a provider of high-end motor
finance, with completion expected in the second half of the year.
This acquisition will help us to extend the JBR proposition to more
customers and to broaden our offering within the specialist motor
finance market.
Shawbrook's established model
continues to demonstrate our adaptability, resilience and ability
to deliver strong returns. Looking ahead, our focus on our core
specialist products and markets, together with continued efficiency
improvements, will ensure we are able to maximise capital
generation to facilitate further re-investment in our model and
drive future growth and value creation."
|
|
|
|
Footnotes:
|
|
1
|
Loans that are equal to or greater
than two payments in arrears (includes all term
expired).
|
|
|
2
|
Subject to satisfaction of the
conditions precedent to the acquisition, completion is expected to
take place in H2 2024.
|
|
|
3
|
As at July 2024.
|
|
|
4
|
70% faster when comparing July 2023
to June 2024, relating to the full application submitted to formal
mortgage offer stage.
|
|
|
5
|
50% reduction when comparing June
2023 to June 2024.
|
|
|
Visit https://www.shawbrook.co.uk/investors/
to download the full Interim Financial
Report.
|
|
|
|
|
|
|
|
| |