Shawbrook's profit surges in first nine months of the year

Challenger bank Shawbrook posted a sharp rise in underlying profit in the first three quarters of 2015, boosted by higher demand for loans for small businesses.

In the nine months to the end of September, the London-listed group registered a 68% year-on-year increase in underlying profit to £54.5m, while the bank’s loan book rose 23% to £2.9bn.

"The group continues to deliver strong growth, with originations and loans to customers up 27 percent and 23 percent respectively, driven by growing demand for lending from UK small and medium enterprises," said group interim chief executive and chief financial officer Tom Wood.

"Commercial mortgages, asset finance, secured and consumer divisions performed particularly well, both in terms of originations and new product launches."

The group said it has maintained its interest margin in the first three quarters of the year, adding it remains on track to meet its full year goals.

Shawbrook shares were up 1.91% to 363.00p at 1055 GMT on Thursday.