Shawbrook sees 16% rise in underlying profit as loan book reaches £20.1bn
Underlying profit before tax rose to £195.5m for the six months to 30th June, up from £168.6m a year earlier, while underlying return on tangible equity stood at 18.1%.
Shawbrook has reported a 16% increase in underlying profit before tax for the first half of 2026, as the specialist lender continued to grow lending across its core markets while improving operational efficiency.
Underlying profit before tax rose to £195.5m for the six months to 30th June, up from £168.6m a year earlier, while underlying return on tangible equity stood at 18.1%.
The lender’s loan book, including originate-to-distribute (OTD) activity, increased to £20.1bn from £19.2bn at the end of 2025, representing annualised growth of 10%.
During the period, Shawbrook completed two OTD transactions totalling £1.3bn, including its £800m Aldbrook Mortgage Transaction 2026-1 securitisation.
Shawbrook also reported an improvement in efficiency, with its underlying cost-to-income ratio falling from 40.0% to 36.4%, which it attributed to continued investment in technology, artificial intelligence (AI) and organisational changes.
Customer deposits increased to £18.8bn, while the stock cost of deposits reduced to 3.80% from 3.92% at the end of 2025.
The group’s CET1 ratio strengthened to 13.0% from 12.4% at year-end, following capital optimisation initiatives, including the issuance of a £250m additional tier one (AT1) instrument.
Marcelino Castrillo, chief executive officer of Shawbrook, said: “Shawbrook delivered a strong first half, with disciplined execution across our specialist markets.
“We maintained credit resilience, focused new lending on the most valuable opportunities, and optimised our capital position.
“Underlying profit before tax rose by 16% to £195.5 million, while underlying return on tangible equity was 18.1%, reflecting the quality and resilience of the platform we have built.”
He added: “Our investment in digital and technology provides us with a platform to deliver efficient growth.
“The underlying cost to income ratio improved to 36.4% in H1 2026 from 40.0% a year earlier, as income continues to significantly outpace cost growth.
“This reflects deliberate choices across organisational design, our estate footprint and technology stack, increasingly enhanced by AI, with the benefits compounding over time.
“We remain focused on delivering sustainable returns for shareholders. These results reinforce our confidence in meeting our FY 2026 guidance and paying a maiden ordinary dividend in FY 2027 in respect of FY 2026 earnings.”
Related
Vida Group mortgage assets surpass £3bn in H1
Hope Capital Property Finance increases committed funding to £50m with Shawbrook Bank
Newcastle for Intermediaries relaunches 90% LTV products and expands mortgage offering
Sedulo appoints Tim Akin to London debt advisory team
Ashling Quinn joins Hampshire Trust Bank as lending director for the Midlands
Saffron for Intermediaries urges brokers not to write off complex income cases
Principality Intermediaries cuts mortgage rates by up to 0.13%
Recognise Bank expands commercial mortgage range with 5-year fixed product
Leek Building Society broadens lending criteria
Rely cuts BTL mortgage rates by up to 0.25%
Principality Building Society mortgage balances rise to £11.3bn in H1
