Shawbrook Group plc (LSE:SHAW) reported another quarter of solid expansion on Thursday, marking its first trading update since rejoining the public markets. The specialist lender continued to grow across both its lending operations and deposit franchise.
As of September 30, the loan book had risen to £18.25 billion, up from £15.93 billion at the end of December 2024. The increase was driven by strong organic demand in the group’s specialist Commercial and Retail divisions, along with the acquisition of ThinCats Group Limited, which contributed an additional £0.6 billion in loans.
The deposit base also expanded, growing 15% on an annualised basis to £17.58 billion compared with £15.80 billion at year-end 2024.
Credit quality remained stable, with a cost of risk of 45 basis points and an arrears ratio of 1.9%. Shawbrook’s adjusted underlying return on tangible equity held firm at 17.8%. Capital levels were solid as well, with a CET1 ratio of 12.6% and a total capital ratio of 15.1% on a post-IPO pro forma basis.
Commenting on the results, Chief Executive Officer Marcelino Castrillo said: “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.”
The quarter also saw the completion of several strategic priorities, including the acquisition of ThinCats, the continued expansion of Shawbrook’s Digital Savings platform into Business Savings originations, and a new partnership with Hargreaves Lansdown to support its first branded cash savings product.
Shawbrook’s shares began trading on the Main Market of the London Stock Exchange on November 4.
The group said it continues to evaluate its exposure to historic regulated motor finance lending but expects any potential redress to be immaterial based on early findings.
Looking ahead, Shawbrook outlined medium-term goals that include low double-digit annual loan book growth, a mid-30s underlying cost-to-income ratio, mid-to-high-teens annual growth in underlying profit before tax, and a high-teens adjusted underlying return on tangible equity. The lender plans to issue its first dividend in fiscal year 2026.
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