Shawbrook Group PLC Q1 2023 Trading Update (6344Z)

TIDMPH56

RNS Number : 6344Z

Shawbrook Group PLC

17 May 2023

 
                  Shawbrook Group plc - Q1 2023 Trading Update 
 
 London, 17 May 2023 - Shawbrook Group plc ('the Group') today 
  issues its trading update for the three months ended 31 March 
  2023 ('Q1 2023'). 
 
 Highlights 
        Strong financial and operational performance maintained throughout 
  --     the first quarter, alongside continued investment in digitalisation. 
       ------------------------------------------------------------------------ 
        Loan book grew to GBP11.2 billion (31 December 2022: GBP10.5 
  --     billion), driven by continued strength in loan origination 
         across our Real Estate and SME markets. 
       ------------------------------------------------------------------------ 
        Maintained a well-capitalised and liquid balance sheet: 
  -- 
       ------------------------------------------------------------------------ 
        --    Strong funding position retained with our retail deposit 
               book growing at an annualised rate of 9% to GBP11.2 billion 
               (31 December 2022: GBP10.9 billion), supported by healthy 
               levels of liquidity, with a liquidity coverage ratio of 
               263.7% (31 December 2022: 321.3%). 
       ----  ------------------------------------------------------------------ 
        --    Continued to optimise our capital resources, with a Common 
               Equity Tier 1 ratio of 12.8% (31 December 2022: 12.8%), 
               a total capital ratio of 15.6% (31 December 2022: 15.8%) 
               and a leverage ratio of 8.8% (31 December 2022: 8.8%). 
       ----  ------------------------------------------------------------------ 
        Consistent delivery of attractive returns, with a strong 
  --     return on tangible equity of 22.0%(1) for the three months 
         ended 31 March 2023 (31 December 2022: 20.1%). 
       ------------------------------------------------------------------------ 
        We continue to closely monitor the changing economic environment 
  --     and, while the outlook remains uncertain, we are not seeing 
         any signs of widespread credit stress across the loan book, 
         with the Group's overall arrears rate remaining stable at 
         1.9%(2) (31 December 2022: 1.9%). 
       ------------------------------------------------------------------------ 
        Further investment in digital and data to enhance our customer 
  --     journeys and robust risk management capabilities: 
       ------------------------------------------------------------------------ 
        --    Advanced our 'next generation underwriting' project in 
               our Real Estate business with the launch of 'Colleague 
               Hub' in April 2023. This new data-driven platform will 
               help to reduce manual processing across our underwriting 
               journeys, enabling faster completion times for our digital 
               buy-to-let customers. 
       ----  ------------------------------------------------------------------ 
        --    Expanded the use of our automated decisioning capabilities 
               to a wider group of our broker partners, allowing more 
               of our digital SME lending customers to benefit from simpler 
               and faster decision journeys. 
       ----  ------------------------------------------------------------------ 
        --    Piloted the launch of our new end-to-end digital savings 
               journey, intended to increase self-service capabilities, 
               maximise automation and deliver excellent experiences. 
       ----  ------------------------------------------------------------------ 
        Announced an agreement, subject to regulatory approval, to 
  --     acquire Bluestone Mortgages Limited, a specialist mortgage 
         lender focused primarily on owner occupied mortgages. 
       ------------------------------------------------------------------------ 
 
 Marcelino Castrillo, Chief Executive Officer said: 
 "The excellent performance we delivered during 2022 extended 
  into the first quarter of 2023, as we continued to build on 
  our established track record of sustainable growth and strong 
  profitability, underpinned by proven scalability, a diversified 
  portfolio and robust risk management. While growing our loan 
  book, we have maintained disciplined underwriting standards, 
  conscious of the increasing affordability pressures on parts 
  of the economy. 
 
  Our loan book grew to GBP11.2 billion, driven by strong demand 
  across our specialist real estate and SME markets, and our new 
  business pipeline is strong . Our growth continued to be primarily 
  funded by our robust savings proposition, with customer deposits 
  increasing to GBP11.2 billion. 
 
  Our 'best of both' model, combining great technology with human 
  ingenuity, continued to make an impact across our markets. We 
  made further investments in digital and data to enhance our 
  customer journeys, including the launch of a new data-driven 
  platform in our Real Estate franchise to help revolutionise 
  the Shawbrook underwriting experience and the continued roll-out 
  of auto decisioning capabilities to our SME customers. In our 
  Consumer Franchise, we piloted the launch of our new digital 
  savings journey which, once live, will help to deliver excellent 
  experiences to our customers through increased self-service 
  and automation capabilities. 
 
  While the macroeconomic backdrop continues to show signs of 
  volatility, the proven flexibility of our business model combined 
  with our strong capital and liquidity base means we can adapt 
  quickly to challenges and opportunities as they may present 
  themselves while delivering on our purpose to power up ingenuity, 
  to create opportunity every day." 
 
 1.     Profit after tax (adjusted to deduct distributions made to 
         holders of capital securities), divided by, average tangible 
         equity. Average tangible equity is calculated as, total equity 
         less capital securities and intangible assets at the beginning 
         of the period (31 December 2022), plus total equity less 
         capital securities and intangible assets at the end of the 
         period (31 March 2023), divided by two. 
 2.     Loans that are equal to or greater than two payments in arrears 
         (includes all term expired). 
       ------------------------------------------------------------------------ 
 
 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. 
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May 17, 2023 02:00 ET (06:00 GMT)