Shawbrook enters fourth quarter with 'strong momentum'

(Sharecast News) - Shawbrook Group reported strong lending and deposit growth in the first nine months of 2025 on Thursday, and said it entered the final quarter with "strong momentum" following its return to the public markets and the completion of the ThinCats acquisition. The specialist lender's CEO, Marcelino Castrillo, said the update demonstrated "the strength of our business model and disciplined execution".

"We enter the final quarter of 2025 with strong momentum, a resilient balance sheet and a clear strategic focus," he added.

"The group remains well positioned to continue to enhance our customer proposition, deliver against our medium-term targets and generate attractive, sustainable returns for shareholders."

The loan book increased to £18.25bn at 30 September, up from £15.93bn at the end of 2024, driven by strong organic demand across specialist commercial and retail markets and the addition of ThinCats, which contributed a £0.6bn portfolio.

Shawbrook completed the acquisition during the period, accelerating its expansion in SME lending.

Deposits rose to £17.58bn, equivalent to 15% annualised growth, supported by further rollout of Shawbrook's proprietary digital savings platform to business customers.

The company also broadened its partner distribution channels, including powering Hargreaves Lansdown's first branded cash savings product, which it said reinforced its role as a specialist banking partner for major financial platforms.

It was admitted to the Main Market of the London Stock Exchange on 4 November, marking its return to public ownership.

Credit quality reportedly remained stable, with a cost of risk of 45bps, slightly below 2024 levels, and an arrears ratio of 1.9%.

Adjusted underlying return on tangible equity held firm at 17.8%, while capital ratios eased modestly, with a CET1 ratio of 12.6% and a total capital ratio of 15.1%.

The group said its initial assessment of exposure to historical regulated motor finance lending suggests any potential redress liabilities would be immaterial.

Shawbrook reiterated the medium-term targets set out at IPO, including low double-digit annual loan growth, a mid-30s cost-to-income ratio, mid-to-high-teens underlying profit growth and a high-teens adjusted return on tangible equity.

It said it planned to introduce a maiden dividend in 2026 with a progressive policy thereafter.

At 1345 GMT, shares in Shawbrook Group were down 1.67% at 378.78p.

Reporting by Josh White for Sharecast.com.