Shawbrook reports record profits of £197.2m for 2021

Its loan book also saw a 26 per cent growth to £8.6bn. 

During the year, the bank lent £5.19bn in property finance loans while its subsidiary The Mortgage Lender (TML), which it acquired in January 2020 for an undisclosed sum, issued loans valued at £513.7m. 

The loans and advances for the year for both firms increased on 2020, up from £4.16bn for property finance and £239.6m for TML respectively. 

In February 2021, Shawbrook’s equity in TML increased from 19.99 per cent to 100 per cent bringing it into its full ownership. Shawbrook said TML exceeded its annual completions target and received around £1.3bn in mortgage applications during the year. Shawbrook said TML also had a “strong pipeline” going into 2022. 

TML contributed a net operating income of £4.9m and a loss before tax of £7.7m to the group’s results. Shawbrook said if the acquisition took place on 1 January 2021 instead, it estimated that the consolidated net operating income for the group for the year ended 31 December 2021 would have been £386.4m instead of £386.1m and consolidated profit before tax for the group would have been higher at £196.1m.

Overall, it said the acquisition of TML gave the group opportunities in adjacent markets and gave it a “competitive advantage”.

Marcelino Castrillo, chief executive of Shawbrook Bank, said 2021 was a “significant year” for the firm as it accelerated the next phase of its growth journey. 

It invested in its data capabilities and technology, and launched Shawbrook Zero – a fully digital non-advised second charge mortgage. 

He added: “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, creating opportunities for our customers, every single day.”