Shawbrook Group PLC 2022 Annual Report and Accounts (6825U)

TIDMPH56

RNS Number : 6825U

Shawbrook Group PLC

30 March 2023

 
          Shawbrook Group plc - Full year results for the 12 months to 
                                31 December 2022 
        Record profitability against an uncertain macroeconomic backdrop 
 London, 30 March 2023 - Shawbrook Group plc today announces 
  its full year results for the year ended 31 December 2022. 
 Our 2022 profitability and returns reflect the strength of our 
  'best of both' business model which combines modular technology 
  with human expertise, underpinned by our strong and prudent 
  capital and liquidity profile. 
 Key highlights 
       Growth delivered through continued investment in our customer 
  --    proposition 
      ------------------------------------------------------------------------- 
       --    Loan book growth of 25%(1) to GBP10.5bn (2021: GBP8.6bn), 
              driven by our diverse offering and further expansion across 
              our markets. 
      ----  ------------------------------------------------------------------- 
       --    Strong originations, particularly in our core SME and 
              Real Estate markets. 
      ----  ------------------------------------------------------------------- 
       --    Scaled our digital capabilities through investments in 
              technology, serving c.425,000 customers in 2022. 
      ----  ------------------------------------------------------------------- 
       --    Deposits rose c.31% to GBP10.9bn (2021: GBP8.4bn) as our 
              strong savings proposition continued to attract customers. 
      ----  ------------------------------------------------------------------- 
       Record profitability with consistent superior returns 
  -- 
      ------------------------------------------------------------------------- 
       --    Profitability driven by net interest margin improvement, 
              with underlying profit before tax increasing to GBP238.0m 
              (2021: GBP197.2m). 
      ----  ------------------------------------------------------------------- 
       --    Underlying return on tangible equity of 20.1% (2021: 20.1%), 
              driven by continued scalability, operating leverage and 
              our disciplined approach to pricing and returns. 
      ----  ------------------------------------------------------------------- 
       Supplemented growth through strategic M&A 
  -- 
      ------------------------------------------------------------------------- 
       --    Announced an agreement, subject to regulatory approval, 
              to acquire Bluestone Mortgages Limited, a specialist mortgage 
              lender focused primarily on owner occupied mortgages. 
      ----  ------------------------------------------------------------------- 
       Conservative capital management provides the foundation 
  --    for future growth 
      ------------------------------------------------------------------------- 
       --    Continued to optimise our capital resources with Common 
              Equity Tier 1 capital ratio of 12.8% (2021: 12.7%) and 
              total capital ratio of 15.8% (2021: 16.2%). 
      ----  ------------------------------------------------------------------- 
       --    The liquidity coverage ratio remains prudently positioned 
              at 321.3% (2021: 247.8%). 
      ----  ------------------------------------------------------------------- 
       --    Careful and robust management of loan books remains a 
              strategic priority and the Group's overall arrears rate(2) 
              remains relatively stable at 1.9% (2021: 1.7%). 
      ----  ------------------------------------------------------------------- 
       Extending our positive impact 
  -- 
      ------------------------------------------------------------------------- 
       --    Partnered with education charity Future First, to support 
              their work aimed at encouraging and enabling social mobility 
              to give young people the opportunity to engage with relatable 
              role models and broaden their career horizons. 
      ----  ------------------------------------------------------------------- 
       --    Launched our 'Thrive' apprenticeship programme designed 
              to help young talent from different backgrounds experience 
              early career opportunities. 
      ----  ------------------------------------------------------------------- 
       --    Published our inaugural Task Force on Climate-related 
              Financial Disclosures (TCFD) report. 
      ----  ------------------------------------------------------------------- 
 
 Visit shawbrook.co.uk/2022results to download the full Report 
 
 Marcelino Castrillo, Chief Executive Officer commented: 
 "2022 was an exceptionally good year for Shawbrook, not just 
  in terms of what was delivered but the way in which it was achieved. 
  As well as achieving a record GBP238.0 million underlying profit 
  before tax, we delivered an underlying return on tangible equity 
  of 20.1% and served over 425,000 customers, doing so against 
  an uncertain macroeconomic backdrop. 
 
  Customers across all of our markets have a pressing funding 
  need, often complex or time-sensitive and frequently both. They 
  choose Shawbrook for our ability to understand their individual 
  requirements and to deliver the right finance solution quickly 
  and seamlessly. To do this consistently and at scale requires 
  the combination of great technology and human ingenuity - the 
  'best of both'. 
 
  We continued to co-develop 'Vision', a digital portfolio monitoring 
  tool now running within our Real Estate and SME portfolios, 
  enabling us to generate deeper data-driven insights into credit 
  performance. We also extended our MyShawbrook portal and its 
  partner ecosystem to include bridging and commercial investment 
  applications with integrated valuations, driving a vastly improved 
  broker experience. 
 
  But, technology is only half of the equation at Shawbrook and, 
  in 2022, we continued to focus on the 
  attraction and retention of exceptional talent. We also strengthened 
  our employee value proposition, 
  introduced a number of support measures to help our people with 
  the increased cost of living and 
  continued to embed our purpose and culture. 
 
   While the external landscape changed significantly over the 
   course of 2022, the flexibility of our model continued to play 
   to our advantage. We are well positioned for further sustainable 
   growth across our diverse markets and remain alert to further 
   inorganic opportunities. 
 
   I am reassured by the financial strength of our platform and 
   the resilience of our model given the likelihood of continued 
   market volatility. The success of 2022 allows us to look ahead 
   with confidence in our ability to respond to the immediate needs 
   of the customers we serve today and to commit to prudent investment 
   in the long-term sustainable growth of Shawbrook." 
 
 Business highlights 
 
 Enterprise 
 The Group's Enterprise franchise serves UK real estate investors, 
  homeowners and SMEs with a range of specialist lending products 
  . 
             Increased automation and digitalisation of our core customer 
        --    journeys helped us to establish a differentiated proposition 
              in a competitive UK property market, demonstrated by our 
              latest 83%(3) (2021: 80%) broker satisfaction score. 
             Joined forces with PEXA, the fintech behind the world's 
        --    first digital property exchange, to initiate the digitalisation 
              of the completions process. 
             Further extended the roll out of our award-winning 'Vision' 
        --    portfolio monitoring tool, developed in collaboration 
              with FundingXchange, across our Real Estate and SME portfolios. 
             Continued to evolve our digital SME lending business, 
        --    using automation and enhanced data analytics to simplify 
              and speed up lending decisions, providing fast, flexible 
              and risk-adjusted finance at scale. 
             Launched Open Banking technology across the franchise, 
        --    leveraging application programme interface (API) enabled 
              links into customers' live banking information, enabling 
              faster, more targeted focus on the customers who really 
              need it. 
 
 Consumer 
 The Group's Consumer franchise serves UK consumers and micro 
  business owners with a range of lending and savings products. 
             Delivered enhanced customer support and faster response 
        --    times, through transitioning our consumer lending servicing 
              operation to a new servicing partner. 
             Launched our Open Banking backed product in partnership 
        --    with ClearScore, offering a discounted rate to incentivise 
              customers to share their data, enabling us to integrate 
              Open Banking data into our consumer decisioning technology. 
             Made several improvements to our customer journeys to 
        --    align with the Financial Conduct Authority's new Consumer 
              Duty principles, ensuring our purpose-led culture and 
              Risk Management Framework continued to encourage good 
              consumer outcomes. 
 
 Savings 
 The Group provides a wide range of Personal and Business savings 
  solutions, with competitive interest rates, including easy access, 
  notice and fixed term accounts and fixed cash ISAs. 
             Focused efforts on the dynamic management of our retail 
        --    deposit book, including the proactive handling of the 
              back book, increasing our customer care and enhancing 
              our digital capabilities to enable more customers to experience 
              excellent customer journeys. 
             Deployed a major upgrade and cloud migration of our core 
        --    savings system, allowing us to further automate key elements 

              of customer fulfilment requests, improving the speed and 
              effectiveness of the service we provide. 
             To optimise the Group's cost of funds, we continued to 
        --    diversify our deposit mix by expanding our product range 
              and digital marketplace presence. 
 
 The Mortgage Lender Limited (TML) 
 TML provides a range of buy-to-let and owner occupied mortgages, 
  designed for customers with more complex income profiles, including 
  self-employed, entrepreneurs and first-time buyers . 
             Continued to scale its 'real life lending' offering through 
        --    a volatile rate environment impacting the UK mortgage 
              market. 
             Enhanced its portfolio monitoring capabilities with the 
        --    introduction of a wider suite of early warning indicators 
              to proactively identify emerging risks. 
             Launched a dedicated intermediary members club 'Society'. 
        --    Since launch, the club has increased engagement and collaboration 
              with its intermediary partners, through a series of industry 
              events and communications. 
 
 1.    Loan book growth of 22% from GBP8.6 billion at 31 December 
        2021 to GBP10.5 billion at 31 December 2022. When adjusted 
        to add back the sale of a portfolio of loans from Real Estate 
        that completed in January 2022, which had a carrying amount 
        at the point of derecognition of GBP298.3 million, loan book 
        growth is 25%. 
 2.    Loans that are equal to or greater than two payments in arrears 
        (includes all term expired). 
      ------------------------------------------------------------------------- 
 3.    Combined 2022 score as at 31 December 2022. 
      ------------------------------------------------------------------------- 
 
 Visit shawbrook.co.uk/2022results to download the full Report 
  A copy of the Annual Report will be submitted to the National 
  Storage Mechanism and will shortly be available for inspection 
  at https://data.fca.org.uk/#/nsm/nationalstoragemechanism 
  For further information, please contact: 
  Stephanie Mackrell 
  Teneo 
  [e-mail] 
  For investor enquiries, please contact: 
  Murray Long 
  Head of Investor Relations 
  [e-mail] 
 
  About Shawbrook - Banking for the real world 
 
  Shawbrook is designed to accommodate individuality, diversity 
  and the dynamics of the modern world. We are driven by our purpose, 
  to power up ingenuity to create opportunity, every single day. 
 
  Leveraging strong digital capabilities to complement deep human 
  expertise, our 'best of both' proposition is ideally placed 
  to provide personalised finance solutions to those with immediate 
  and often complex needs. We offer a diversified range of practical 
  lending and savings products across three customer franchises 
  to serve consumers, businesses and real estate professionals. 
 
  Our advanced digital platform enables us to provide a differentiated 
  proposition to an expanding customer base. Our multi-channel 
  distribution and end-to-end digital capabilities are empowered 
  by our expert talent and partnerships with a range of leading 
  FinTech and data providers to deliver best-in-class customer 
  experiences. 
 
  The Group's lending activities are primarily funded by a stable 
  retail deposit book consisting of easy access and ISA accounts, 
  variable rate notice accounts and fixed rate fixed term accounts 
  (mostly one - five years). Shawbrook Bank Limited is an operating 
  entity of Shawbrook Group plc. Shawbrook Bank Limited is authorised 
  by the Prudential Regulation Authority and regulated by the 
  Financial Conduct Authority and the Prudential Regulation Authority 
  and is a member of the Financial Services Compensation Scheme. 
------------------------------------------------------------------------------- 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

FR JLMRTMTMTBBJ

(END) Dow Jones Newswires

March 30, 2023 02:00 ET (06:00 GMT)