Shawbrook reiterates guidance as loan book, deposits grow

(Sharecast News) - Lender Shawbrook reiterated its full-year guidance on Thursday after reporting further growth in its loan book and customer deposits during the third quarter, alongside an improvement in its capital position.

The FTSE 250-listed UK specialist retail and commercial bank said its loan book, including originate-to-distribute (OTD) balances, reached £20.3bn at the end of September, up from £20.1bn at the half-year stage and £19.2bn at end of the last financial year.

This represented annualised growth of 7.7%, rising to around 10% when excluding the disposal of approximately £300m of Blue Motor Finance assets during the quarter.

Customer deposits increased to £19.6bn from £18.4bn at the end of 2025, representing annualised growth of 8.7%.

Shawbrook's common equity tier one (CET1) capital ratio improved to 13.4% from 13% in June and 12.4% at the end of last year, supported by organic capital generation and the disposal.

However, its arrears ratio increased to 1.8% from 1.7% in June and 1.6% at the end of 2025, although the bank said this largely reflected a reduction in the loan book denominator following disposals and OTD transactions.

Chief executive Marcelino Castrillo said: "Another quarter of disciplined, efficient growth reflects the resilience of our proposition amongst the UK's most productive businesses and professional property investors."

The bank maintained its FY26 guidance for a loan book of around £21bn, a cost-to-income ratio below 38%, underlying return on tangible equity of approximately 17% and a CET1 ratio above 13.2%.

It also reiterated plans to pay its maiden ordinary dividend in FY27, relating to its FY26 results.

During the quarter, Shawbrook completed a £900m buy-to-let securitisation, while the British Business Bank increased its ENABLE Build guarantee facility with the lender to £350m from £150m.

Shawbrook shares were up 2.6% at 296.5p by 1432 GMT.

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