Shawbrook Group (SHAW) H2 2025 earnings summary

Executive summary

• Achieved 16% growth in underlying profit before tax to £340.5m and 17.2% underlying return on tangible equity, in line with medium-term guidance.

• Successfully executed IPO in November 2025, included in FTSE 250, with related non-recurring costs of £68m.

• Acquired and integrated ThinCats and Playter, expanding SME market coverage and strengthening digital SME offering.

• Maintained disciplined growth, robust credit performance, and scalable technology platform.

Financial highlights

• Net operating income rose 12% year-on-year to £684.4m, reflecting disciplined origination.

• Underlying profit before tax increased 16% to £340.5m; statutory profit before tax declined 8% due to IPO and acquisition costs.

• Loan book (including OTD assets) grew 20% to £19.2bn, with organic growth at 16%.

• Underlying cost-to-income ratio improved to 39.0% from 40.8%.

• Underlying basic EPS increased 16% to 47 pence.

Outlook and guidance

• Medium-term guidance reiterated: low double-digit annual loan book growth, mid-30s cost-to-income ratio, high-teens RoTE, and CET1 ratio of 12-13%.

• Confident in maintaining 12%-13% CET1 range while supporting growth and distributions.

• Committed to a maiden ordinary dividend for 2026 results, with a progressive policy thereafter.

• Expect underlying adjustments impacting 2025 to fall away, supporting clean capital generation in 2026.