Shawbrook Group plc ('Shawbrook' or the 'Group') today issues its trading update for the three months ended 31 March 2026 ('Q1 2026') alongside guidance for FY26.
Strategic progress
- Loan book (including OTD) increased to £19.7 billion (31 December 2025: £19.2 billion), supported by selective originations across our specialist segments and continued execution of our originate-to-distribute strategy.
- Deposit balances increased to £18.7 billion (31 December 2025: £18.4 billion), with the stock cost of deposits reducing to 3.71% (FY 2025: 3.88%) and the cost of new retail funding aligned to our expectations.
- Asset quality remained robust; 3-month-plus arrears4 were 1.7% (FY 2025: 1.6%), within management expectations.
- CET1 ratio increased to 12.6% (31 December 2025: 12.4%)5. Capital generation in the quarter was in line with expectations and consistent with our trajectory toward the FY26 guidance range of >13.2% pre-Basel 3.1, reflecting the typical first-quarter step-up in operational risk-weighted assets.
- Total capital ratio and AT1 issuance. In April 2026, we completed the issuance of a £250 million AT1 instrument in conjunction with a tender offer of the Group's existing £124 million AT1 securities. This increases the Group's total capital ratio from 14.9% to 16.0%, had the AT1 issue taken place as at 31 March 2026.
- Originate-to-distribute. We disposed of our residual interest in the £510 million Lanebrook Mortgage Transaction 2024-1 as part of our OTD strategy.
- ThinCats update. Following the Group's acquisition of ThinCats in Q4 2025, we completed the purchase of a c.£160 million loan portfolio, originated and serviced by ThinCats, further building scale in our targeted SME segment.
Marcelino Castrillo, Chief Executive Officer, commented:
"Q1 2026 has delivered tangible progress against the strategic priorities we set out at the full year. Financial performance was strong in the first quarter, driven by continued growth and cost discipline. The loan book grew 2.6% in the quarter to £19.7 billion, with cost of deposits reducing to 3.71%. Asset quality remained robust and we strengthened our capital position by issuing £250 million of AT1 securities in April 2026.
We see attractive opportunities for growth within the specialist markets we serve, underpinned by a TAM of c.£300bn. Our proven specialist model and disciplined underwriting allow us to capture those opportunities, while remaining alert to the macroeconomic backdrop.
Our confidence underpins the FY26 guidance we are setting out today, as well as reiterating our medium-term guidance."
