UK challenger bank posts 63 percent pretax profit
(4 March 2016 – United Kingdom) A sharp increase in demand for small business loans has risen Shawbrook Group’s full year pretax profit by 63 percent, the bank has reported.
The UK based lender, which was only founded in 2011 and went public in 2015, said underlying pretax profit rose to £ 80.1 million pounds (A$154 million) for the year ended 31 December, from £ 49.1 million in the previous year.
The bank's loan book increased by 44 percent to £ 3.36 billion.
Shawbrook said net interest margin rose by 0.1 percent to 6.2 in the last year, assisted by a reduction in cost of funds.
London-listed Shawbrook is one of several 'challenger banks' to emerge since the financial crisis to fill a gap in small business lending that appeared when larger banks slimmed down to focus on bolstering their capital to meet tougher regulatory requirements.
The bank's cost-to-income ratio reduced to 48.3 percent from 50.5 percent in the corresponding period a year earlier.
Subscribe