Shares in challenger bank Shawbrook jumped today after the bank said that its profits are soaring thanks to growing demand from small and medium-sized businesses for loans.
Shawbrook, which was founded in 2011 and made its debut on the London Stock Exchange earlier this year, said that its underlying profit rose by 68 per cent during the first nine months of this year.
The FTSE 250 bank said that gross lending had increased 27 per cent in the three quarters to 30 September, to £1.21bn. Net loans and advances to customers increased by 23 per cent to £2.86bn in the same period.
The bank also saw its commercial mortgages division increase originations by 23 per cent, to £441m, in the first three quarters of this year.
Tom Wood, the bank’s interim chief executive officer and chief financial officer said the results demonstrated the bank’s “successful execution” of its growth strategy.
“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 due to be replaced as chief executive by former Santander UK banking head Steve Pateman in January.