Shawbrook Bank reports profit slump despite loan book growth
Shawbrook Bank announced a boost to its deposit and loan book in its annual results, driven by commercial and retail markets.
The bank’s loan book grew 16 per cent to £15.2bn in 2024, compared to the £13.3bn recorded in 2023.
Despite this, profit before tax dipped to £294m, a minor drop from the £302m booked the previous year.
The firm said maintained profits reflected the business’ “continued strategic investment” with underlying return on tangible equity recorded at 17 per cent.
The retail lender’s deposit book also swelled 16 per cent to £15.8bn, rising from £13.6bn reported in December 2023.
Shawbrook’s chief executive Marcelino Castrilo said: “In 2024, we continued to invest in technology, talent and our proven specialist proposition.
“This commitment to our strategy, combined with our ability to execute quickly and at scale, gave us the platform to continue to grow our business throughout the year and to take that momentum into 2025.
“Underpinning our strategy is our ‘best of both’ model, which combines exceptional talent and deep market expertise with a scalable and adaptive technology infrastructure.
“This combination ensures we remain lean, focused and agile as an organisation, whilst also creating the capacity we need to meet growing customer demand.”
Castrilo added that diversification of customer propositions across markets had been a “key differentiator” in driving growth and returns.
He said the firm’s cost of risk for the year had reduced by four points to 47bps, which signalled the lender’s “prudent approach to underwriting and proactive portfolio monitoring capabilities.”
“Across our markets, we see significant potential for organic growth, while remaining well positioned to pursue attractive inorganic opportunities as they arise.
“Our clear strategic focus and the capabilities we have built, combined with our innovative mindset and agility, give us multiple avenues to create further long-term value for the benefit of our customers, colleagues and shareholders in 2025 and beyond,” he added.