Shawbrook loan book grows nearly a quarter to £9.8bn

According to its latest Q3 results, its customer deposits breached £10bn, which is up 27 per cent on the same period last year.

The lender also completed a £346m buy-to-let securitisation through The Mortgage Lender in October, which it said would give it an “additional layer of collateral to support our strategic ambitions, while helping to further diversify the group’s funding base”.

Shawbrook said the macroeconomic outlook “continues to worsen” but it remained alert to potential challenged.

It continued: “We are currently not seeing a material deterioration in our early warning indicators and we continue to experience low levels of impairment losses and arrears.”

Shawbrook said its arrears rate was 1.8 per cent as of 30 September, which is in line with 1.9 per cent as of 30 June.

Continuing digitalisation

Shawbrook said it was working with Pexa to digitalise its mortgage processing capability and streamline its completion process.

It has also introduced a auto-decisioning tool, Vision, to its asset finance offering to help digitalise its business finance proposition.

Shawbrook noted that it extended the roll-out of its portfolio risk management tool across its property finance division which it said would “generate dynamic and early insights into credit performance”.

Shawbrook’s focus is providing a ‘stable and consistent offering’

Marcelino Castrillo, Shawbrook’s chief executive said that despite the challenging macroeconomic backdrop its focus remained on “ensuring Shawbrook provides a stable and consistent offering to our chosen markets inside a well-established risk appetite”.

He continued: “Our well-diversified lending proposition offers us an additional layer of security. As some markets retrench and others expand, creating a greater need for lending, this gives us the optionality to deploy our capital across a range of asset classes.

“In support of this, we continue to scale our digital capabilities through targeted investments in technology to deliver excellent customer experiences, with our loan book growing to £9.8bn. This growth was funded by our strong and consistent savings franchise, which surpassed the £10bn customer deposits milestone and more than 210,0003 customers entrusting us with their savings.”

He continued that its unique business model of “combining deep human expertise with digital and data” continued to produce strong returns and it was closely monitoring the macroeconomic environment to see if it impacted its chosen lending markets.

“While we do not yet see any material worsening of credit risk profiles across the book, our investments in technology and data to enhance our risk management capabilities, coupled with our investment in human expertise ensures we remain prepared for a more challenged economic cycle,” Castellino said.