REG - Shawbrook Group PLC - Shawbrook Q3 2025 Trading Update

ShawbrookAnnouncement

13/11/2025 07:00

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RNS Number : 2961H  Shawbrook Group PLC  13 November 2025

 

 Shawbrook Group plc - Q3 2025 Trading Update
 13 November 2025 - Shawbrook Group plc ('Shawbrook' or the 'Group') today
 issues its trading update for the nine months ended 30 September 2025 ('Q3
 2025').

 Marcelino Castrillo, Chief Executive Officer, commented:

"In our first trading update since returning to the public markets, we are
 pleased to report continued growth across our diversified lending markets and
 deposit franchise, demonstrating 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."

 Strategic highlights
 •    Completed the strategic acquisition of ThinCats Group Limited ('ThinCats'),
      adding a £0.6 billion loan book and experienced team, accelerating expansion
      in SME lending, a growing and attractive segment.
 •    Continued roll out of our proprietary Digital Savings platform to Business
      Savings originations, extending our award-winning proposition to SMEs and
      enhancing diversity and resilience of our deposit base.
 •    Partnered with Hargreaves Lansdown to power its first branded cash savings
      product, demonstrating Shawbrook's position as the specialist banking partner
      of choice for leading financial platforms.
 •    On 4 November 2025, Shawbrook was admitted to trading on the Main Market of
      the London Stock Exchange, a significant milestone which positions the Group
      well for continued growth across our selected markets.

 Financial highlights
 •    Loan book increased to £18.25 billion(1) (31 December 2024: £15.93 billion),
      with growth supported by strong organic demand across both specialist
      Commercial and Retail markets and the acquisition of ThinCats.
 •    Deposit book grew by 15% on an annualised basis to £17.58 billion (31
      December 2024: £15.80 billion).
 •    Credit quality remained stable, with a cost of risk of 45bps (FY 2024: 47bps)
      and arrears ratio of 1.9% (FY 2024: 1.7%).
 •    Adjusted underlying return on tangible equity remained robust at 17.8%(2) (FY
      2024: 17.5%).
 •    CET1 capital ratio was 12.6%(3) (31 December 2024: 13.0%) and total capital
      ratio was 15.1%(3) (31 December 2024: 15.9%).
 •    The Group continues to assess its exposure to historical regulated motor
      finance lending; however, based on its initial conclusions, the Group
      anticipates any redress liability to be immaterial.

 Medium-term targets
 Metric                                         Target
 Loan book growth                               Low double digits per annum
 Underlying cost to income ratio                Mid-30s with opportunity for further optimisation thereafter
 Underlying profit before tax growth            Mid-to-high teens growth per annum
 Adjusted underlying return on tangible equity  High teens
 CET1 ratio                                     12.0% to 13.0%
 Dividend policy                                Maiden dividend in FY 2026, progressive thereafter

 Footnotes:
 1.   Loan book increased at an annualised growth rate of 19% and represents the
      loan book when including the carrying amount of all structured asset sales
      derecognised through our originate to distribute strategy and £0.6 billion of
      acquired loans through the ThinCats acquisition (annualised growth rate of 14%
      excluding the acquisition). Net loan book excluding structured asset sales is
      £17.1 billion (31 December 2024: £15.2 billion), reflecting 17% growth on an
      annualised basis.
 2.   Adjusted return on tangible equity is calculated based on an average 12.5%
      CET1 ratio. Within the calculation, the average risk weighted assets (RWAs)
      excludes the RWAs associated with the ThinCats acquisition as the acquisition
      occurred on 30 September 2025. Underlying return on tangible equity is 16.4%
      when calculated using actual TNAV.
 3.   Ratios are presented on a proforma basis (post-IPO). On a reported basis
      (pre-IPO), the CET1 and total capital ratios are 12.3% and 14.8% respectively
      as at 30 September 2025.

Footnotes:

1.

Loan book increased at an annualised growth rate of 19% and represents the
loan book when including the carrying amount of all structured asset sales
derecognised through our originate to distribute strategy and £0.6 billion of
acquired loans through the ThinCats acquisition (annualised growth rate of 14%
excluding the acquisition). Net loan book excluding structured asset sales is
£17.1 billion (31 December 2024: £15.2 billion), reflecting 17% growth on an
annualised basis.

2.

Adjusted return on tangible equity is calculated based on an average 12.5%
CET1 ratio. Within the calculation, the average risk weighted assets (RWAs)
excludes the RWAs associated with the ThinCats acquisition as the acquisition
occurred on 30 September 2025. Underlying return on tangible equity is 16.4%
when calculated using actual TNAV.

3.

Ratios are presented on a proforma basis (post-IPO). On a reported basis
(pre-IPO), the CET1 and total capital ratios are 12.3% and 14.8% respectively
as at 30 September 2025.

 

 For investor enquiries, please contact:
 Murray Long
 Head of Investor Relations
 murray.long@shawbrook.co.uk (mailto:murray.long@shawbrook.co.uk)

 For further information, please contact:
 Zander Swimburne
 Teneo
 shawbrook@teneo.com (mailto:shawbrook@teneo.com)

 About Shawbrook
 Shawbrook provides finance to a broad and diverse range of customer segments,
 each of which values the flexibility, speed and certainty we deliver.

 Shawbrook combines sophisticated underwriting, multi-channel distribution and
 next-generation technology and data capabilities to create a platform that
 delivers high-growth and high-returns while supporting our customers'
 ambitions.

 With a diversified product suite, we serve carefully selected Commercial and
 Retail markets, from complex structured credit facilities for growth-focused
 businesses to mortgages for professional landlords and property investors, as
 well as motor finance for high-end vehicles.

 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 (typically one to 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.

 

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