Aldermore, OneSavings Bank and Shawbrook have been admitted to the FTSE 250.
At the start of last week, the FTSE Group conducted its quarterly review of the 250 index – the 101st to 350th largest companies listed on the stock exchange – to decide which companies should enter and which companies should drop out.
Following the review, all three challenger banks were deemed valuable enough to be admitted to the FTSE 250.
As at 4 June, Aldermore, OneSavings Bank and Shawbrook were valued at £985m, £789m and £947m respectively.
The challenger banks will be formally added to the index on 19 June.
Experts say the trio’s admission to the FTSE 250 reflects increased competition in the market.
OneSavings Bank sales and marketing director John Eastgate says: “Almost exactly one year after OneSavings Bank came to market as the first new bank to float for 10 years, this is a great achievement. The fact that all three newly floated challenger banks have gained admission to the FTSE 250 is a resounding endorsement of the extent to which they have grasped the opportunity within the specialist lending market.”
Mortgages for Business finance director Simon Whittaker says: “I think it is appropriate to offer congratulations to them all on entry into the ‘middle rank” of FTSE companies. This should represent a symbol of their capacity to expand further, which will lead to increased competition and improved products in the SME and buy-to-let space.”