Shawbrook reiterates guidance after "strong first half"

Shawbrook Group PLC on Wednesday reported profit growth, and a steady CET1 ratio and return on tangible equity, for the first half of 2026.

The Essex, England-based digital banking platform, which in late May was reported to be considering a merger with competitor Aldermore, reported underlying pretax profit of £195.5 million, up 16% from £168.6 million the year before. Statutory pretax profit increased 19% to GBBP194.6 million from £163.1 million.

The underlying RoTE narrowed slightly to 18.1% from 18.3%, while the common equity tier 1 ratio narrowed to 13.0% at June 30 from 13.1% one year prior, but widened from 12.4% at December 31.

Shawbrook's statutory RoTE narrowed to 17.1% from 17.6%.

"Shawbrook delivered a strong first half, with disciplined execution across our specialist markets," said Chief Executive Officer Marcelino Castrillo. "We maintained credit resilience, focused new lending on the most valuable opportunities, and optimised our capital position."

Underlying net interest income increased 14% year-on-year to £354.6 million from £310.9 million. Interest income & similar income rose 7.2% to £744.4 million from £694.7 million.

"Our investment in digital and technology provides us with a platform to deliver efficient growth," Castrillo commented. "The underlying cost to income ratio improved to 36.4% in H1 2026 from 40.0% a year earlier...This reflects deliberate choices across organisational design, our estate footprint and technology stack, increasingly enhanced by AI, with the benefits compounding over time.

"We remain focused on delivering sustainable returns for shareholders. These results reinforce our confidence in meeting our FY 2026 guidance and paying a maiden ordinary dividend in FY 2027 in respect of FY 2026 earnings."

Shawbrook reiterated its full-year guidance "across all metrics". This includes an underlying RoTE of around 17%, and a CET1 ratio exceeding 13.2%.

Sky News reported in May that Shawbrook was in the early stages of considering whether to make an offer for Reading, England-based Aldermore, after owner FirstRand Ltd put it up for sale. Sky later reported that Lloyds Banking Group PLC and Metro Bank Holdings PLC were also considering making an offer.

Shares in Shawbrook were down 1.0% at 331.50 pence late on Wednesday morning in London.

Copyright 2026 Alliance News Ltd. All Rights Reserved.