Shawbrook reports strong results
Challenger bank Shawbrook has reported a 14% jump in pre-tax profit in the first half of 2016.
Shawbrook’s profits reached £38m in the first six months of 2016 despite being hit with a £9m impairment charge for “irregularities” found in its loan book (more here).
Had it not had the charge profits would have risen 41% over the same period.
Shawbrook chief executive Steve Pateman said there had been no material change in activity since the referendum and that some markets that slowed in the run up to the vote have now picked up.
He said: “We have continued to deliver strong, sustainable returns with an underlying 12 month rolling RoTE to 30 June 2016 of 21.2%, 23.3% excluding the impairment charge (statutory RoTE: 21.2%).
“This reflects our disciplined approach to strong risk adjusted returns alongside continued investment to support the future growth of the loan book.”
The challenger bank’s loan book increased by 14% to £3.8bn, while net operating income rose to £99.3m from £77.1m.
The bank also said it has appointed Angela Wakelin as its new chief operating officer.