Shawbrook Group (SHAW) H1 2026 earnings summary

Executive summary

• Underlying profit before tax rose 16% year-over-year to GBP 195.5 million, with statutory profit before tax at GBP 194.6 million, reflecting efficient growth, strong returns, and disciplined execution across specialist lending segments.

• Loan book including originate-to-distribute assets grew 10% annualised to GBP 20.1 billion, supported by robust performance across all core segments and diversified market exposure.

• Technology and AI investments drove operational efficiencies, improved customer satisfaction, and reduced cost to APE ratio to 1.59%.

• Credit quality remained resilient, with cost of risk at 57bps and net write-offs at 13bps, well below historical median.

• CET1 ratio strengthened by 60bps to 13.0%, and total capital ratio reached 16.4%.

Financial highlights

• Net operating income increased 15.4% year-over-year to GBP 387.2 million; net interest income up 14% to GBP 354.6 million, driven by strong originations and disciplined cost of funds.

• Underlying basic EPS up 15% to GBP 0.265 (26.5p); statutory basic EPS at 25.3p.

• Cost-to-income ratio improved to 36.4% from 40.0% year-over-year.

• Impairment losses rose to GBP 50.7 million, mainly due to pre-2022 development finance loans.

• Customer deposits increased to GBP 18.8 billion; loan-to-deposit ratio reduced to 93.9%.

Outlook and guidance

• FY 2026 guidance reiterated: loan book (including OTD) c.GBP 21 billion, cost-to-income ratio <38%, CET1 ratio >13.2% (pre-Basel 3.1), underlying ROTE c.17%.

• Medium-term targets: low double-digit loan book growth, mid-30s cost-to-income ratio, mid-high teens underlying profit before tax growth, high-teens underlying ROTE, progressive dividend build, CET1 ratio 12-13%.

• Maiden ordinary dividend for FY 2026, payable in FY 2027.

• Strong momentum entering H2, with continued focus on efficient growth and capital build-up ahead of Basel 3.1.