Shawbrook Q3 2026 Trading Update
Summary by AI BETAClose X
Shawbrook Group plc – Q3 2026 Trading Update | |||||||||||||||||||||||||||||||
Shawbrook Group plc (‘Shawbrook’ or the ‘Group’) today issues its trading update for the nine months ended 30 September 2026 (‘Q3 2026’). | |||||||||||||||||||||||||||||||
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Q3 2026 highlights
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Marcelino Castrillo, Chief Executive Officer, commented: “Another quarter of disciplined, efficient growth reflects the resilience of our proposition amongst the UK’s most productive businesses and professional property investors.
Our scalable platform, including our deposit franchise, continues to underpin our ability to profitably grow our specialist lending proposition whilst maintaining credit discipline and careful cost management. This combination has delivered 10% annualised loan book growth and sustainable returns, with net capital generation taking our CET1 ratio to 13.4%2. We are well capitalised ahead of our maiden dividend payable next year and remain on track to meet our FY 2026 guidance, including an underlying return on tangible equity of c.17% and a cost to income ratio below 38%.” | |||||||||||||||||||||||||||||||
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Strategic progress | |||||||||||||||||||||||||||||||
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Targeted growth across our specialist markets: Loan book (including OTD)1 grew to £20.3 billion (31 December 2025: £19.2 billion), an 8% increase on an annualised basis, driven by disciplined origination across our specialist segments. This reflects the completion of the disposal of c.£0.3 billion of Blue Motor Finance Limited (BMFL) assets during the quarter; excluding this, annualised loan book growth was 10%. The Group is on track to deliver its FY 2026 guidance of a loan book (including OTD) of c.£21 billion at 31 December 2026, supported by its origination pipeline heading into the fourth quarter. | ||||||||||||||||||||||||||||||
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Deposit funding: Customer deposits grew to £19.6 billion (31 December 2025: £18.4 billion), with deposit funding remaining broadly aligned to underlying reference rates. The savings market has remained competitive; however, we continue to manage deposits effectively through our diversified product proposition and distribution, strong brand and digital customer journey. | ||||||||||||||||||||||||||||||
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Credit quality: The overall quality of the book remained resilient, with an arrears ratio3 of 1.8% (30 June 2026: 1.7%; 31 December 2025: 1.6%). The increase largely reflects the lower denominator following OTD transactions and the BMFL disposal. Adjusting for these, the arrears ratio3 was stable at 1.7% compared with 30 June 2026 on the same basis. | ||||||||||||||||||||||||||||||
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Capital management: CET1 ratio increased by c.40bps in the quarter to 13.4%2 (30 June 2026: 13.0%; 31 December 2025: 12.4%), with net organic capital generation of c.20bps supplemented by the completion of the BMFL disposal. The Group is on track to meet its FY 2026 guidance of >13.2%2 after incorporating the maiden dividend. | ||||||||||||||||||||||||||||||
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Capital markets execution: In September 2026, the Group completed a fully retained securitisation of £0.9 billion of Shawbrook-originated buy-to-let assets, creating additional eligible collateral. | ||||||||||||||||||||||||||||||
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ENABLE Build guarantee facility: The British Business Bank increased its existing facility with Shawbrook from £150 million to £350 million, helping us to further support smaller UK house builders and extend our specialist development finance to more developers, supporting the delivery of new homes across the UK. | ||||||||||||||||||||||||||||||
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Unchanged FY 2026 guidance | |||||||||||||||||||||||||||||||
The Group reiterates its FY 2026 and medium-term guidance4. | |||||||||||||||||||||||||||||||
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Footnotes: | |||||||||||||||||||||||||||||||
1. |
As at 30 September 2026, the Group’s originate-to-distribute (OTD) balances were £2.4 billion, resulting in a loan book of £17.9 billion (31 December 2025: £17.8 billion). | ||||||||||||||||||||||||||||||
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Reported capital ratios are stated before Basel 3.1. FY 2026 CET1 guidance of >13.2% is stated pre-Basel 3.1 and includes a deduction for the dividend expected to be paid in 2027. | ||||||||||||||||||||||||||||||
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See the definition of the Group’s arrears ratio on page 78 of the 2026 Interim Financial Report. | ||||||||||||||||||||||||||||||
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Medium-term guidance: Loan book growth of low double digits (based on a CAGR from FY 2024); Cost to income ratio of mid-30s; Underlying profit before tax growth of mid-high teens; Underlying return on tangible equity of high-teens; progressive build of ordinary dividend and a CET1 ratio of 12-13%. | ||||||||||||||||||||||||||||||
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For investor enquiries, please contact: |
Murray Long |
Head of Investor Relations |
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For further information, please contact: |
Zander Swinburne |
Teneo |
About Shawbrook |
Shawbrook is a UK specialist lender providing specialist finance for the real economy. We serve SMEs, professional property investors and individuals when the stakes are high, the choices are hard and timing is everything. Our distinctive specialist brands bring deep market expertise and judgement, supported by a single scalable technology platform and disciplined credit underwriting. Shawbrook is listed on the London Stock Exchange as a constituent of the FTSE 250 Index. |
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