RCS - Shawbrook Group PLC - Full year results for the 12 months to 31 Dec 2021

Metro Bank HoldingsAnnouncement

31/03/2022 08:15

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RNS Number : 6789G  Shawbrook Group PLC  31 March 2022

 Shawbrook Group plc

 Full year results for the 12 months to 31 December 2021

 Record profits, a strong platform for future growth

 London, 31st March 2022 - Shawbrook Group plc today announces its full year
 results for the year ended 31 December 2021.

 Our unique, tech-enabled model and continued focus on innovation delivered an
 exceptional performance in 2021, including record levels of profitability and
 origination, strong loan book growth and excellent customer satisfaction
 scores.

 Key highlights:

 ●    High-demand for our innovative, customer-centric proposition
      ○                           Served c.350,000 customers and generated a high Trustpilot score of 4.6 out of
                                  5
      ○                           Loan book growth of 26%1 to £8.6bn (2020: £7.1bn), driven by our diverse
                                  offering and further expansion across our markets
      ○                           Record originations, with particular strength in our core SME and property
                                  markets
      ○                           Deposits rose 21% to £8.4bn (2020: £6.9bn) as our strong savings proposition
                                  continued to attract customers
 ●    Record profitability, superior returns
      ○                           Record levels of profitability delivered, with profit before tax increasing to
                                  £197.2m (2020: £73.5m)
      ○                           Return on tangible equity of 20.1% (2020: 8.0%), driven by continued
                                  scalability, operating leverage and our disciplined approach to pricing and
                                  returns
 ●    Further diversifying our products and distribution
      ○                           Launch of Shawbrook Zero, a first to market, fully digital and non-advised
                                  second charge mortgage
      ○                           Continued focus on delivering maximum value and excellent outcomes for our
                                  customers
      ○                           Continued to invest in and strengthen our data capabilities and deploy
                                  innovative and cloud-based technology solutions to further scale-up capacity
                                  and extend distribution
 ●    Accelerating growth through strategic M&A
      ○                           Acquisition of The Mortgage Lender (TML) brings opportunities in adjacent
                                  markets and distribution channels and further extends our originate to
                                  distribute model
 ●    Conservative capital management provides the foundation for future growth
      ○                           CET1 capital ratio of 12.7% (2020: 12.6%)
      ○                           Total capital ratio of 16.2% (31 December 2020: 16.8%)
      ○                           Prudent liquidity coverage ratio of 247.8% (2020: 229.7%)
      ○                           Maintained prudent approach to risk, with the Group's overall arrears rate at
                                  a low 1.7%2 (31 December 2020: 1.9%) and trending back down to pre-pandemic
                                  levels (31 December 2019: 1.6%)
 ●    Reinvigorated our purpose, which underpins our ESG strategy
      ○                           Launched the 'Empower Her' project, working in partnership with the
                                  Saracens Foundation to encourage and enable equality, diversity and inclusion
                                  in grassroots and professional sport
      ○                           Inaugural ESG report includes first alignment to Task Force on Climate-Related
                                  Financial Disclosures (TCFD) recommendations

 Visit shawbrook.co.uk/2021Results to download the full Report

 Marcelino Castrillo, Chief Executive Officer, commented:

 "Our tech-enabled model continued to provide operational leverage and balance
 sheet optimisation during 2021. This enabled us to deliver exceptional
 performance, including record levels of profitability, with profit before tax
 increasing to £197.2 million (2020: £73.5 million), record origination
 levels and loan book growth of 26%3.

 2021 was a significant year for Shawbrook as we continued to build on the
 foundations of our exceptional business and accelerated the next phase of our
 growth journey, which is helping us establish a unique position in the market.
 We have pioneered an entirely new breed of financial services business by
 combining the agility, innovation, customer focus and scalability of a FinTech
 with the deep sector expertise and ingenuity of our people to deliver
 market-leading profitability.

 Looking forward, we will continue to respond to opportunities created by
 evolving economic and

 societal trends, by leveraging our multi-channel origination and diversified
 revenue model to support our customers. I am confident that by building on the
 foundations we have created over the last decade including continued
 investment in technology and data, our market-leading growth is set to
 continue. We are uniquely placed to deal with the current macroeconomic and
 geopolitical challenges and the complex problems faced by our customers today
 and create opportunities which will serve to set us apart from the rest as we
 continue to disrupt the sector."

 Business Highlights

 Enterprise

 The Group's Enterprise Franchise serves UK SMEs, FinTechs, property
 professionals and property owners with a range of specialist lending products.

 ●    Successfully launched and rolled-out the MyShawbrook buy-to-let portal,
      deploying advanced decisioning capability and sophisticated insights to
      provide a slicker and more intuitive application journey
 ●    Entire development finance portfolio, including the acquired RateSetter book,
      was migrated onto the new cloud-based loan booking platform
 ●    Collaborated with FundingXchange to co-develop and roll out a proactive
      portfolio monitoring tool within the SME lending business
 ●    Development and launch of a new portal, enabling intermediary-sourced asset
      finance transactions to be originated digitally from March 2022

 Consumer

 The Group's Consumer Franchise serves UK consumer and micro business owners
 with a range of lending and savings products. Leveraging highly efficient
 cloud-based lending platforms, end-to-end digital distribution (with almost
 100% auto-decisioning of personal loans) as well as a branchless distribution
 strategy, there is a deep understanding of customers' needs based on 10+ years
 of proprietary data.

 ●    Progressed the digital agenda through further evolving the API4-led consumer
      FinTech platform with the use of new data sources, including
      the integration of Open Banking data more widely across
      our customer journeys
 ●    Developed a new artificial intelligence enabled pricing environment, giving
      the group the ability to make pricing decisions five times quicker
 ●    Infrastructure supported by partnerships with more than 30 FinTechs and data
      providers

 The Mortgage Lender (TML)

 TML provides a range of flexible residential mortgages designed for customers
 with more complex income profiles, including self-employed, entrepreneurs and
 first-time buyers.

 ●    Exceeded its annual completions target with a buoyant application flow at
      record levels: c.£1.3 billion of applications received in the year and a
      strong pipeline going into 2022
 ●    Launched a new residential product, aimed at supporting the self-employed and
      borrowers with complex incomes
 ●    Launched a new evolved brand and website, reflecting its aim to offer "real
      life lending"

 1    When adjusted to add back in the structured asset sale completed in September
      2021 of The Mortgage Lender Limited (TML) buy-to-let loans, which had a
      carrying amount at the point of derecognition of £342.6 million.
 2    Loans in arrears at 30+ days with one payment missed.
 3    When adjusted to add back in the structured asset sale completed in September
      2021 of The Mortgage Lender Limited (TML) buy-to-let loans, which had a
      carrying amount at the point of derecognition of £342.6 million.
 4    API stands for Application Programming Interface.

 Visit shawbrook.co.uk/2021Results to download the full Report.

 A copy of the Annual Report will be submitted to the National Storage
 Mechanism and will shortly be available for inspection
 at https://data.fca.org.uk/#/nsm/nationalstoragemechanism
 (https://data.fca.org.uk/#/nsm/nationalstoragemechanism)

 For further information please contact:

 Vicky Hart

 Head of Secretariat

 Email: Companysecretary@shawbrook.co.uk

 For investor enquiries please contact:

 Murray Long

 Head of Investor Relations

 Email: Murray.Long@shawbrook.co.uk

 LEI: 21380071539WSMTM4410

 -Ends-

 

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