Shawbrook income and profit rise in first half

Shawbrook Group posted interim results for the six months to 30 June on Wednesday, with net operating income improving to £99.3m, compared with £77.1m a year ago.

The FTSE 250 firm said that of that, interest income, net fee and operating lease income was £140.1m - up from £107.5m - while interest expense and similar charges went up to £40.8m from £30.4m.

Its costs and provisions also rose slightly, to £49.8m from £47.8m, with its impairment losses on financial assets up to £14.3m from £4.6m.

Shawbrook’s statutory profit before tax for the period hit £35.2m, compared with £24.7m last year, with profit attributable to owners reaching £25.6m from £18.8m.

“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%),” said Shawbrook CEO Steve Pateman.

“This reflects our disciplined approach to strong risk adjusted returns alongside continued investment to support the future growth of the loan book. Cost to income ratio of 47.9% (statutory cost to income ratio: 50.2%) demonstrates the benefits arising from economies of scale.

“Underlying EPS increased to 11p (statutory EPS: 10p) and we reaffirm our previous dividend guidance,” Pateman added.