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Shawbrook H1 profit up 14% to £38m

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Shawbrook Group’s H1 profit before tax rose 14 per cent on H1 2015 to £38m.

A Shawbrook statement says the figure takes into account a £9m impairment charge last month.

The group’s property finance arm increased gross lending by 19 per cent to £495m at the half-year mark.

The figure includes £103m of second charge lending.

The firm says: “Despite the negative macroeconomic outlook, a number of opportunities may present themselves as the incumbent banks choose to further exit non-core markets.

The interest rate floors in some of our loan portfolios also alleviate the potential downside on gross asset yields from a reduced base rate, supporting lending margins.

“Against this backdrop, we will continue to be cautious yet confident in our outlook and we are well prepared for a softer economic environment.”

Shawbrook chief executive Steve Pateman says: “It is clear from the rapidly evolving and ever changing view of the future for the UK economy post the decision to leave the EU, that the situation will remain fluid for some time; we have already seeneconomic forecasts move from a near certain recession on the 24th June to lower but still respectable growth rates for 2017 in the latest IMF forecasts.

“Much remains to be resolved and this will undoubtedly influence consumer and business confidence as the future of our relationship with the EU becomes clearer – at present we are not seeing any material change in activity and indeed some markets that slowed in the run up to the referendum have picked up.

“However it is too soon to fully assess the medium term impacts on the broader economy given the number of outcomes that remain possible.”

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