Business
Interim Report for the period ended 30 June 2024
Interim Report for the period ended 30 June 2024.
About this update from Shawbrook Group Plc
[{"type":"text","content":"\n\n\n\n\n\nShawbrook Group plc\n \n\n\n\n\nInterim Results for the period ended 30 June 2024\n \n\n\n\n\nLondon, 8 August 2024 - Shawbrook Group plc ('Shawbrook' or the 'Group') today announces its Interim Results for the six months ended 30 June 2024.\n \n\n\n\n\nFinancial highlights\n\n\n\n\n•\n\n\nLoan book grew by 15% on an annualised basis to £14.3 billion (31 December 2023: £13.3 billion), following continued strong originations in our core SME and property markets.\n\n\n \n\n\n\n\n•\n\n\nFurther strengthened and diversified our funding base, with deposits growing by 21% on an annualised basis to £15.0 billion (31 December 2023: £13.6 billion).\n\n\n \n\n\n\n\n•\n\n\nAchieved an underlying profit before tax of £124.5 million (30 June 2023: £149.3 million), with stronger originations in our Retail Mortgage Brands' resulting in an anticipated lower net interest margin from a different business mix. We expect margins to widen as our origination mix re-weights across all of our specialist lending markets.\n\n\n \n\n\n\n\n•\n\n\nThe overall credit quality of our loan book remained robust and credit risk metrics remain within our risk appetite, with a cost of risk of 64bps (30 June 2023: 61bps) and an arrears ratio of 2.7%1 (31 December 2023: 2.3%).\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 12.6% (31 December 2023: 12.9%), a total capital ratio of 15.9% (31 December 2023: 16.4%) and a liquidity coverage ratio of 271.2% (31 December 2023: 262.8%).\n\n\n \n\n\n\n\n•\n\n\nCompleted an additional retained securitisation of £0.6 billion of The Mortgage Lender Limited (TML) buy-to-let assets, providing further liquidity benefits to the Group.\n\n\n \n\n\n\n\n \nStrategic highlights\n\n\n\n\n•\n\n\nSigned an agreement to acquire JBR Auto Holdings Ltd, a UK specialist motor finance lender focused on high-end vehicles2.\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 propositions:\n\n\n \n\n\n\n\n \n\n\n⁰\n\n\nScaled our Lending Hub to process c.40%3 of Real Estate cases, reducing the time to offer by up to 70%4 for digital buy-to-let cases.\n\n\n \n\n\n\n\n \n\n\n⁰\n\...