Shawbrook Group plc (SHAW), the FTSE 250 UK specialist lender serving SMEs, professional property investors and individuals, has published its trading update for the nine months ended 30 September 2026. The announcement confirms the Group's loan book, including originate-to-distribute balances, grew to £20.3 billion, up from £19.2 billion at 31 December 2025, representing 7.7% annualised growth. With full-year 2026 guidance reiterated and a maiden ordinary dividend confirmed for payment in 2027, investors will be watching whether Shawbrook can sustain its momentum into the fourth quarter.

Key Points

  • Shawbrook Group plc (SHAW), FTSE 250 UK specialist lender
  • Loan book reached £20.3bn at 30 September 2026, with customer deposits rising to £19.6bn
  • CET1 ratio improved to 13.4% (pre-Basel 3.1); FY 2026 guidance for underlying return on tangible equity of approximately 17% and cost-to-income ratio below 38% reaffirmed
  • Investors should watch fourth-quarter origination pipeline and whether the full-year loan book target of approximately £21 billion is achieved

Loan Book Growth to £20.3bn Supported by Specialist Lending Origination and BMFL Disposal

Shawbrook's loan book, including originate-to-distribute balances of £2.4 billion, reached £20.3 billion at 30 September 2026, compared with £19.2 billion at 31 December 2025. The announcement states that the Group completed the disposal of approximately £0.3 billion of Blue Motor Finance Limited assets during the quarter. Excluding this disposal, annualised loan book growth was 10%, ahead of the reported 7.7% headline figure. The Group reiterates its full-year 2026 target of approximately £21 billion, supported by its origination pipeline heading into the fourth quarter, reflecting continued disciplined activity across its specialist lending segments including SME finance and professional property investment.

Customer Deposits Rise to £19.6bn as Shawbrook Navigates Competitive Savings Market

Customer deposits grew to £19.6 billion at 30 September 2026, up from £18.4 billion at 31 December 2025, representing annualised growth of 8.7%. The announcement notes that deposit funding has remained broadly aligned to underlying reference rates despite a competitive savings market. Shawbrook attributes its deposit-gathering capability to a diversified product proposition, strong brand, and digital customer journey. The Group's deposit franchise is described as underpinning its ability to profitably grow its specialist lending platform, providing the stable funding base that supports continued origination across its core markets in the UK.

CET1 Ratio Rises 40bps in the Quarter to 13.4%, Ahead of Maiden Dividend in 2027

Shawbrook's CET1 ratio increased by approximately 40 basis points during the third quarter to 13.4% (pre-Basel 3.1), up from 13.0% at 30 June 2026 and 12.4% at 31 December 2025. The announcement states that net organic capital generation of approximately 20 basis points was supplemented by the completion of the BMFL disposal. The Group's full-year 2026 CET1 guidance is greater than 13.2%, which the disclosure notes already incorporates a deduction for the maiden ordinary dividend expected to be paid in 2027. Additionally, in September 2026, Shawbrook completed a fully retained securitisation of £0.9 billion of buy-to-let assets, creating additional eligible collateral.

British Business Bank Increases ENABLE Build Facility to £350m to Support UK Housebuilders

The British Business Bank expanded its existing ENABLE Build guarantee facility with Shawbrook from £150 million to £350 million during the period. The announcement states this increase is intended to help Shawbrook further support smaller UK housebuilders and extend its specialist development finance proposition to more developers, supporting the delivery of new homes across the UK. This development is relevant given the ongoing policy focus on UK housing supply and positions Shawbrook's development finance operation as a potential beneficiary of increased government-backed guarantee capacity. The arrears ratio stood at 1.8% at 30 September 2026, with the Group noting it was stable at 1.7% when adjusted for OTD transactions and the BMFL disposal.