Marcelino Castrillo, Chief Executive Officer, commented:
“Another quarter of disciplined, efficient growth reflects the resilience of our proposition amongst the UK’s most productive businesses and professional property investors.
Our scalable platform, including our deposit franchise, continues to underpin our ability to profitably grow our specialist lending proposition whilst maintaining credit discipline and careful cost management. This combination has delivered 10% annualised loan book growth and sustainable returns, with net capital generation taking our CET1 ratio to 13.4%2. We are well capitalised ahead of our maiden dividend payable next year and remain on track to meet our FY 2026 guidance, including an underlying return on tangible equity of c.17% and a cost to income ratio below 38%.”
Strategic progress
- Targeted growth across our specialist markets: Loan book (including OTD) grew to £20.3 billion (31 December 2025: £19.2 billion), an 8% increase on an annualised basis, driven by disciplined origination across our specialist segments. This reflects the completion of the disposal of c.£0.3 billion of Blue Motor Finance Limited (BMFL) assets during the quarter; excluding this, annualised loan book growth was 10%. The Group is on track to deliver its FY 2026 guidance of a loan book (including OTD) of c.£21 billion at 31 December 2026, supported by its origination pipeline heading into the fourth quarter.
- Deposit funding: Customer deposits grew to £19.6 billion (31 December 2025: £18.4 billion), with deposit funding remaining broadly aligned to underlying reference rates. The savings market has remained competitive; however, we continue to manage deposits effectively through our diversified product proposition and distribution, strong brand and digital customer journey.
- Credit quality: The overall quality of the book remained resilient, with an arrears ratio of 1.8% (30 June 2026: 1.7%; 31 December 2025: 1.6%). The increase largely reflects the lower denominator following OTD transactions and the BMFL disposal. Adjusting for these, the arrears ratio was stable at 1.7% compared with 30 June 2026 on the same basis.
- Capital management: CET1 ratio increased by c.40bps in the quarter to 13.4%2 (30 June 2026: 13.0%; 31 December 2025: 12.4%), with net organic capital generation of c.20bps supplemented by the completion of the BMFL disposal. The Group is on track to meet its FY 2026 guidance of >13.2% after incorporating the maiden dividend.
- Capital markets execution: In September 2026, the Group completed a fully retained securitisation of £0.9 billion of Shawbrook-originated buy-to-let assets, creating additional eligible collateral.
- ENABLE Build guarantee facility: The British Business Bank increased its existing facility with Shawbrook from £150 million to £350 million, helping us to further support smaller UK house builders and extend our specialist development finance to more developers, supporting the delivery of new homes across the UK.
