Shawbrook Group PLC

Management Reports • Apr 28, 2022

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RNS Number : 7145J

Shawbrook Group PLC

28 April 2022

Shawbrook Group plc - Q1 2022 Trading Update
Shawbrook Group plc ('the Group') today issues its trading update for the three months ended 31 March 2022 ('Q1 2022').
Highlights
●		Annualised loan book growth of 22%1 supported by our flexible and scalable business model and continued strength in sustainable loan origination.
●		Continued to invest in and strengthen our data capabilities and deploy innovative technology solutions across the business to further scale-up capacity, enhance customer journeys and extend distribution capabilities:
		○	Completed the launch of a new digital Asset Finance portal, helping brokers provide clearer and faster decisions to our customers on their asset finance proposals. We also rolled out a portfolio monitoring tool, co-developed with FundingXchange, across the entire SME lending portfolio after its successful pilot in 2021.
		○	Our MyShawbrook BTL portal went live to all brokers, streamlining and simplifying the full buy-to-let application process. In March 2022, we also extended the same smart technology to provide a more efficient and streamlined application journey for our bridging customers through the introduction of MyShawbrook Bridging.
		○	Extended the collection of Open Banking data across our consumer proposition via ClearScore's platform, helping us make better credit decisions whilst ensuring we continue to offer our customers the right products at the optimal time.
		○	The Mortgage Lender launched an extended residential product range to better support our customers with more complex income profiles, driving significant increases in volume and resulting in a record pipeline going into Q2 2022.
●		Continued to experience low levels of arrears, with the Group's overall arrears rate at 1.6%2 (31 December 2021: 1.7%) reflecting the strong credit quality of our loan book.
●		Maintained a strong capital position, whilst delivering a return on tangible equity above 22%3 for the 3 months ended 31 March 2022 (year ended 31 December 2021: 20.1%).
●		Further extended our Originate to Distribute proposition and balance sheet diversification with the completion of a sale of a c.£300 million Property Finance loan portfolio. The gain on disposal was c.£7.7 million.
●		In partnership with Uptree, we launched 'Thrive', an apprenticeship programme designed to attract future talent and create opportunities to help boost social mobility.
●		Launched our new visual identity, which supports our unique position in the market and ability to offer real world banking with precision and creativity.
Marcelino Castrillo, Chief Executive Officer said:
"We have continued to build on the positive momentum achieved in an excellent FY21 and our strong long-term track record of growth, which is reflected in our continued excellent financial performance. Our loan book grew by 22% annualised to £9.1billion1, driven by strong demand from the SME and Property Finance sectors, and our new business pipeline remains strong. Looking ahead we remain aware and alert to the current macroeconomic backdrop, particularly the cost of living increase to ensure we stay resilient and proactive in offering the right support to our customers. The Group has continued to deploy tech-enabled solutions designed to improve customer experience, speed and scalability, rolling out the MyShawbrook portal to our entire broker community for our buy-to-let proposition, as well as the extension of this smart technology into our Bridging proposition. Our focus on innovation will continue throughout 2022, with the planned deployment of additional digital capabilities and product launches later in the year, to further strengthen our unique position in the market. Across our markets, we see customers continuing to adapt to a rapidly changing external environment and the demand for highly personalised finance solutions increasing as a result. Our next generation banking platform offers a broad and growing range of differentiated and tech enabled finance products and services, ensuring we are well placed to meet this growing demand, and delivering on our purpose to power up ingenuity and create opportunity for our customers."
1	Annual loan growth rate of 22% from £8.6 billion at 31 December 2021 to £9.1 billion at 31 March 2022 (after adding back the disposal of Property Finance loans of £299.7 million).
2	Loans which are equal to or greater than 2 payments in arrears (includes all term expired).
3	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 2021), plus total equity less capital securities and intangible assets at the end of the period (31 March 2022), divided by two.
For further information, please contact: Vicky Hart Head of Secretariat [email protected] For investor enquiries, please contact: Murray Long Head of Investor Relations [email protected]  About Shawbrook - Banking for the real world Over the last decade we have built a new type of bank that is designed to accommodate individuality, diversity and the dynamics of the modern world. Serving c.350,000 active and engaged customers during 2021, Shawbrook provides highly personalised, practical lending and savings products to individuals, businesses and real estate investors. To serve the evolving needs of our customers, and to meet the scale of our potential, we continue to deliver on our purpose: to power up ingenuity to create opportunity, every single day. 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. Important disclaimer Certain information contained in this announcement, including any information as to the Group's strategy, market position, plans or future financial or operating performance, constitutes "forward looking statements". Such forward-looking statements are made based upon the expectations and beliefs of the Group's directors concerning future events impacting the Group, including numerous assumptions regarding the Group's present and future business strategies and the environment in which it will operate going forward, which may prove to be inaccurate. As such, the forward-looking statements contained in this announcement involve known and unknown risks and uncertainties, which may cause the actual results, performance or achievements of the Group or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. LEI: 21380071539WSMTM4410 -Ends-

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