Business
Interim Report for the period ended 30 June 2023
Interim Report for the period ended 30 June 2023.
About this update from Shawbrook Group Plc
[{"type":"text","content":"\n\n\n\n\nShawbrook Group plc\n \n\n\n\n\nInterim Results for the period ended 30 June 2023\n \n\n\n\n\nLondon, 10 August 2023 - Shawbrook Group plc ('Shawbrook' or the 'Group') today announces its Interim Results for the six months ended 30 June 2023.\n \n\n\n\n\nFinancial highlights\n\n\n\n\n•\n\n\nLoan book grew to £11.9 billion1 as at 30 June 2023 (31 December 2022: £10.5 billion), driven by strong net lending volumes across Real Estate, SME and Residential Mortgage Brands.\n\n\n \n\n\n\n\n•\n\n\nStrong profitability maintained in the first half of 2023, achieving 34% growth in underlying profit before tax to £149.3 million compared to £111.4 million in H1 2022 (27% growth on a statutory basis from £106.4 million to £135.1 million). Underlying return on tangible equity was 20.5% compared to 19.6% for H1 2022 (18.4% on a statutory basis compared to 18.6% for H1 2022), supported by the diversification of our proposition.\n\n\n \n\n\n\n\n•\n\n\nWe continue to remain alert to the potential challenges that lie ahead given the uncertain macroeconomic environment, however we are yet to see any material changes to our early warning indicators, with credit quality remaining strong and the number of customers in arrears remaining stable. The overall arrears rate as at 30 June 2023 was 1.9%2 (31 December 2022: 1.9%).\n\n\n \n\n\n\n\n•\n\n\nFurther strengthened and diversified our funding base, with our deposit book growing by 22% on an annualised basis to £12.1 billion (31 December 2022: £10.9 billion) and our total savings customer base increasing by 16% to c.262,000 (31 December 2022: c.225,000).\n\n\n \n\n\n\n\n•\n\n\nMaintained strong surplus liquidity and capital resources, with a Common Equity Tier 1 (CET1) ratio of 12.2% (31 December 2022: 12.7%3), a total capital ratio of 14.8% (31 December 2022: 15.6%3) and a liquidity coverage ratio of 330.7% (31 December 2022: 321.3%), reflecting our liquid balance sheet.\n\n\n \n\n\n\n\n \nStrategic highlights\n\n\n\n\n•\n\n\nCompleted the acquisition of Bluestone Mortgages Limited (BML) in May 2023, helping us to deliver an even stronger proposition to homeowners across the UK.\n\n\n \n\n\n\n\n•\n\n\nContinued to invest in and strengthen our digital capabilities, deploying innovative solutions across the business to improve our customer pro...