Shawbrook loan book up 5.4% in Q1 2021

Jake Carter

May 17, 2021


Shawbrook Group saw its loan book grow by 5.4% to £7.5bn in the first quarter of 2021.

The bank believes this growth has been driven by improving origination levels and demand from new-to-bank property finance and business finance customers.

Its trading update also noted capital and liquidity ratios significantly above regulatory requirements and positive movement in arrears, trending towards pre-pandemic levels following a wind-down of the payment holiday exercise.

Within Q1, Shawbrook completed the acquisition of The Mortgage Lender Limited and continued its investment in technology.

This investment was seen through the introduction of a buy-to-let origination platform for swifter case management and a roll out of digital tools to enhance and automate the customer and in-life management journeys.

It also implemented a new credit scorecard and price testing to provide better outcomes for our customers.

Stock cost of retail deposits managed fell to 0.98% on 30 April 2021 and the return on tangible equity returned to 20% with IFRS 9 modelled macro-economic outlooks and weightings held consistent with those used at 31 December 2020.

Ian Cowie, chief executive of Shawbrook Group, said: “The group has delivered a strong financial and operational performance over the first quarter of 2021, successfully balancing high levels of demand across our chosen markets with an appropriate and prudent risk appetite during these uncertain times.

“Our new business pipeline stands strong with redemptions performing within our expectations.

“We have continued to invest heavily in our digitisation agenda, introducing a new BTL origination platform in property finance and building significantly scaled automation tools in business finance to ease the customer journey, in-life management and portfolio analytics.

“With an improving economic backdrop, strengthening demand for our specialist lending proposition, a robust capital position and a strong funding base, we are ideally placed to build on this continued momentum throughout 2021 and in to 2022.”

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