Shawbrook Bank has announced that its loan and deposit books have surpassed £15bn for the first time, following a surge in lending demand during the first nine months of the year.
In today’s trading update covering the first three quarters, the retail lender reported an 18 per cent annualised increase in its loan book to £15.1bn, up from £13.3bn the previous year, propelled by “strong net lending volumes across our core specialist real estate and SME markets”, as reported by City AM.
The bank’s deposit book also experienced significant growth, expanding by 16 per cent to over £15.2bn, compared to £13.6bn last year.
“Demand for the premium experience, flexibility and certainty we offer across our specialist lending markets remains robust, with both our loan and deposit books exceeding £15bn for the first time,” Marcelino Castrillo, Shawbrook Bank’s chief executive, commented.
“We have maintained our focus on re-weighting our lending mix while leveraging our agility in the deposit market, contributing to a stronger underlying return on tangible equity for Q3.”
“Investment in the continuous evolution of our proposition to stay ahead of customer needs, expectations and trends remains our strategic focus.”
However, the bank did note an uptick in the number of clients in arrears, rising to 2.8 per cent from 2.3 per cent, a figure which the firm stated remains within its credit risk appetite.
“As we look ahead, we continue to see promising opportunities for expansion and value creation across our core markets, including SME and Real Estate,” Marcelino further added.
“The combination of an exceptional customer franchise, a more stable macroeconomic outlook and increasing customer confidence means we are well positioned to continue to deliver on our strategic ambitions throughout the remainder of 2024 and beyond.”
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