Digital and data investment results in dip in Shawbrook’s profits
Shawbrook’s profits dipped last year as it committed “substantial investment in digital and data” to drive long-term growth.
The specialist bank’s underlying pre-tax profits were 3% lower at £294m, although it built momentum with profitability improving during the second half of 2024.
Shawbrook Group’s chief executive Marcelino Castrillo is confident there is “significant potential for organic growth” because of its diversification and scalable technology.
Shawbrook Group chief executive Marcelino Castrillo
He said: “In 2024, we continued to invest in technology, talent and our proven specialist proposition. This commitment to our strategy, combined with our ability to execute quickly and at scale, gave us the platform to continue to grow our business throughout the year and to take that momentum into 2025.”
Strong demand from commercial and retail customers saw Shawbrook’s loan book increase 16% to £15.2bn.
Castrillo believes the “business has remained resilient”, with its cost of risk reducing by four basis points to 47bps.
“This is underpinned by our prudent approach to underwriting and proactive portfolio monitoring capabilities, with proprietary digital solutions giving us the visibility needed to make agile, data-driven decisions,” he added.
In September Shawbrook acquired high-end motor finance lender JBR Auto Holdings. It said it remains “well positioned to pursue attractive inorganic opportunities as they arise”.
