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Shawbrook Bank reports Q1 advances of £4.2bn despite significant BTL contraction

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  • 02/05/2017
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Shawbrook Bank reports Q1 advances of £4.2bn despite significant BTL contraction
In its quarterly report to the end of March, Shawbrook Bank Group reported total lending and advances of over £4.2bn, a 4% annual uplift despite the surge of buy-to-let advances in 2016 and subsequent market contraction.

The bank rejected a buyout offer in early March from Marlin Bidco which valued the bank at £825m and at 330p a share which analysts believe undervalued the bank.

However, the one-off costs associated with the bid and rejection officially confirmed today ran to £4m, but would have hit between £9 – £12.5m in broker and legal fees had it been successful.

The deal would have seen Pollen Street Capital buy back the bank it took to flotation, in partnership with BC Partners. Overall, Shawbrook’s loans grew 22% to £4.1bn in 2016, up from £3.4bn in 2015. The bank saw a 14% increase in pre-tax profit to £91.4m in 2016, from £80.1m the previous year.

The bank’s CEO Steve Pateman, said: “Our Q1 2017 performance reflects the resilience inherent in our diverse business—we can continue to grow within our risk and return disciplines notwithstanding a significant contraction in flows in the BTL market.”

 

Wider broker distribution

The bank launched its 55 Plus Interest-only mortgage in March, distributed through Key Retirement Solutions and since April, packager The Loan Partnership, which allows clients to stay in the family home for up to 15 years, raise funds and make over payments. It confirmed 75 enquiries to date for the product and plans to broaden broker distribution later this year.

The bank extended its finance presence in the UK and Jersey and plans to launch into complex mortgages for borrowers with complicated incomes and motor finance later this year. The bank also extended its relationships though its consumer channels through Confused.com.

Shawbrook Bank floated on the London Stock Exchange in April 2015.

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