Shawbrook Group (SHAW) H1 2025 earnings summary

Executive summary

• Achieved annualised loan book growth of 14% to £17.0bn, with strong performance across all core segments and robust digital platform supporting scale and efficiency.

• Underlying profit before tax rose 35% to £168.6m in H1 2025, reflecting improved margins and operating leverage.

• Net interest margin increased to 4.4% (H1 2024: 4.2%), and cost of risk reduced to 42bps, demonstrating effective risk management.

• Integration of recent acquisitions and digital platform rollouts enhanced operational efficiency and customer experience.

• CET1 ratio improved to 13.1%, and total capital ratio remained strong at 15.8%, well above regulatory requirements.

Financial highlights

• Net operating income grew by 15.5% year-over-year to £335.5m, driven by specialist lending and margin improvement.

• Statutory profit before tax reached £163.1m, up 28% from H1 2024.

• Underlying administrative expenses increased by 10% to £134.3m, but remained stable when excluding JBR acquisition and one-off staff costs.

• Customer deposits grew 5.6% to £16.7bn; CET1 ratio stable at 13.1%.

• Cost to income ratio improved to 40.0% (from 42.1%); cost of risk reduced to 42bps (from 64bps).

Outlook and guidance

• Forward-looking macroeconomic scenarios remain cautious, with a 50% base case probability and downside risks weighted at 40%.

• Well positioned to accelerate strategy delivery with a resilient balance sheet and strong capital foundations.

• Continued focus on digital platform investment and product diversification to support growth and resilience.

• Confident in sustaining momentum into H2 2025 and beyond, focusing on selective growth and operational efficiency.