Compared to last year, Shawbrook Group’s loan book was 18% higher and up on the £13.3bn it had at the end of last year.
The group said this was driven by “strong net lending volumes” across its core specialist real estate and SME markets.
Shawbrook Group said the quality of its loan book stayed “robust” with an arrears ratio of 2.8%, fairly similar to the rate of 2.3% at the end of 2023.
The firm said it also strengthened its funding base as its deposit book increased 16% year-on-year to £15.2bn.
It said its completion of a £399m securitisation of owner-occupied loans originated by Bluestone Mortgages was structured to give the group both external funding and capital optimisation benefits. This deal was announced in October.
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Marcelino Castrillo, chief executive of Shawbrook Group, said: “Demand for the premium experience, flexibility and certainty we offer across our specialist lending markets remains robust, with both our loan and deposit books exceeding £15bn for the first time.
“We have maintained our focus on re-weighting our lending mix while leveraging our agility in the deposit market, contributing to a stronger underlying return on tangible equity for Q3. Credit risk metrics remain comfortably within our risk appetite, with the arrears ratio broadly stable since H1 24.”
He added: “Investment in the continuous evolution of our proposition to stay ahead of customer needs, expectations and trends remains our strategic focus. Our innovation in the deposit market, with the development of our Digital Savings platform, is an illustration of this approach. This proprietary technology gives us complete control of the experience we deliver, with intuitive digital journeys and more self-service options. I am delighted with the response we are seeing from customers as the upgraded service is rolled out.
“As we look ahead, we continue to see promising opportunities for expansion and value creation across our core markets, including SME and real estate. The combination of an exceptional customer franchise, a more stable macroeconomic outlook and increasing customer confidence means we are well-positioned to continue to deliver on our strategic ambitions throughout the remainder of 2024 and beyond.”
Earlier this month, Shawbrook updated its commercial criteria and opened up to first-time landlords.
