Business
Q1 2023 Trading Update
Q1 2023 Trading Update.
About this update from Shawbrook Group Plc
[{"type":"text","content":"\n\n\n\n\nShawbrook Group plc - Q1 2023 Trading Update\n\n\n\n\n \n\n\n\n\nLondon, 17 May 2023 - Shawbrook Group plc ('the Group') today issues its trading update for the three months ended 31 March 2023 ('Q1 2023').\n\n\n\n\n\n\n\n\n\nHighlights \n\n\n\n\n●\n\n\nStrong financial and operational performance maintained throughout the first quarter, alongside continued investment in digitalisation.\n\n\n\n\n●\n\n\nLoan book grew to £11.2 billion (31 December 2022: £10.5 billion), driven by continued strength in loan origination across our Real Estate and SME markets.\n\n\n\n\n●\n\n\nMaintained a well-capitalised and liquid balance sheet:\n\n\n\n\n\n\n\n○\n\n\nStrong funding position retained with our retail deposit book growing at an annualised rate of 9% to £11.2 billion (31 December 2022: £10.9 billion), supported by healthy levels of liquidity, with a liquidity coverage ratio of 263.7% (31 December 2022: 321.3%).\n\n\n\n\n\n\n\n○\n\n\nContinued 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%).\n\n\n\n\n●\n\n\nConsistent 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%).\n\n\n\n\n●\n\n\nWe 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%).\n\n\n\n\n●\n\n\nFurther investment in digital and data to enhance our customer journeys and robust risk management capabilities:\n\n\n\n\n\n\n\n○\n\n\nAdvanced 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.\n\n\n\n\n\n\n\n○\n\n\nExpanded 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...