5th May 2016 07:43
LONDON (Alliance News) - Shawbrook Group PLC on Thursday reported growth in profit in the first quarter of 2016, boosted by growth in loan originations, and said it is confident of delivering its near- to medium-term prospects.
The specialist lender said its pretax profit in the three months ended March 31 grew to GBP19.6 million from GBP13.7 million in the first quarter of 2015, which it said was driven by increased origination and continued operational leverage.
Organic loan originations grew by 8% to GBP475 million from GBP440 million, as property finance originations increased to GBP237 million from GBP231 million, business finance originations rose to GBP177 million from GBP168 million, and consumer originations grew to GBP61 million from GBP41 million.
Origination is the process of creating a home loan or mortgage.
"Looking forward, pipelines are healthy and supportive of our growth objectives and with stability in margins, coupled with expected origination flows, we remain confident of delivering on our near- to medium-term prospects," Shawbrook said in a statement.
"There are a range of political, economic and interest rate uncertainties which may present some challenges. However the diversity within our business and the growth potential in our core markets give us confidence in our ambition to meet the needs of businesses and consumers who are less well served by the mainstream banks," the company added.
Shares in Shawbrook were trading down 3.7% at 281.30 pence on Thursday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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