5th Nov 2015 09:31
LONDON (Alliance News) - Shawbrook Group PLC, a specialist savings bank and lender, on Thursday reported higher underlying pretax profit in the first nine months of 2015, driven by demand for loans among the UK's small and medium-sized enterprises.
Underlying pretax profit, which is adjusted for corporate activity and the cost of listing in London in April, was up 68% to GBP54.5 million in the nine months to September 30 against the corresponding period the prior year, with its net interest margin maintained at 6.1%.
"Commercial Mortgages, Asset Finance, Secured and Consumer divisions performed particularly well, both in terms of originations and new product launches," Chief Financial Officer Tom Wood, who is currently acting as the lender's interim chief executive, said in a statement.
Organic loan originations were up 27% in the nine months to September 30 to GBP1.21 billion, as new originations in the third quarter grew by 20% to GBP401.0 million year-on-year. Net loans & advances to customers increased by 23% to GBP2.86 billion in the nine-month period.
"The full roll out of personal lending and savings offerings and a number of further attractive product and market adjacencies will reinforce future growth, and we remain confident in our continued ability to deliver our near and medium term targets," Wood said.
Wood is acting as chief executive until Steve Pateman, executive director and head of UK banking at Santander UK, takes on the role on January 1, 2016.
The move to appoint Pateman came after Richard Pyman in May took a leave of absence from the position due to illness.
Pyman's leave of absence was originally intended to be temporary, but Shawbrook confirmed in October that he would be leaving the group.
Shares in Shawbrook were up 1.2% at 360.40 pence on Thursday morning, extending their gains on the 290p IPO price.
By Samuel Agini; [email protected]; @samuelagini
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