Shawbrook loan book grows to £12.6bn

According to its latest results, the lender said that the growth was “driven by robust net lending volumes across our specialist markets”.

The company added that excluding the Bluestone Mortgages acquisition, the loan book was £12.3bn.

The firm said that it had diversified its funding base with its deposit book growing at an annualised rate of 30 per cent to £13.4bn.

Marcelino Castrillo, chief executive officer, said: “We have delivered another excellent set of results this quarter. Robust new business flows and strong customer retention levels resulted in the growth of our loan book to £12.6bn. This strong demand, coupled with our disciplined approach to pricing, supported the generation of attractive returns, achieving an underlying return on tangible equity of 21.4 per cent.

“The sustainable returns we continue to generate are enabling us to maintain significant investment in our ‘best of both’ digital and human business model, delivering brilliant experiences for more customers, while improving our operational leverage.”

Shawbrook: ‘Prepared for challenges’

He continued: “We were pleased to agree a new Platform Lending facility with specialist hire-purchase lender, Blue Motor Finance Limited, during the period. This new partnership opens up further opportunity for Shawbrook and reinforces our ability to deliver digital-first finance propositions to previously underserved segments of the UK market.

“The overall credit quality of our loan book remains robust, supported by our low loan-to-value and high debt service coverage ratios and our proactive approach to portfolio monitoring. We remain alert to, and prepared for, the potential challenges that may lie ahead and will continue to support our customers with tailored solutions.”

Castrillo added: “We continue to strengthen our capital position, having successfully issued £90m of Tier 2 debt securities in October, which will help fuel our growth plans. The resilience of our model, combined with our strong capital and liquidity position and diversified loan book, give us the confidence to pursue our strategy.”