Shawbrook Bank Lutea House
Warley Hill Business Park Great Warley, Brentwood Essex, CM13 3BE
Interim Management Statement - Q3 2020
October 2020
Shawbrook Group plc -
Shawbrook Group plc ("Shawbrook" or "the Group") today issues its Interim Management Statement relating to the three months ended 30 September 2020 ("Q3 2020") and includes payment holiday information up to 20 October 2020.
Ian Cowie, Chief Executive Officer said:
As announced at the half year, we started 2020 with a strong balance sheet and prudently positioned capital and liquidity base. The Group's ability to react at pace and our sound operational resilience, coupled with the experience and expertise of our people, have allowed us to respond positively to the challenges and opportunities that have presented themselves during the ongoing pandemic.
Although the impact of COVID-19 has been felt across all our business units, we have taken positive steps to safeguard the long-term sustainability of Shawbrook whilst supporting our people and customers. During Q3, we continued to deploy prudent risk appetite into our chosen markets and increased the loan book steadily to
We continue to assess the IFRS9 provision levels against the evolving payment holiday position, ECL stage migrations and changing macro-economic outlook, with the Q3 impairment charge not requiring significant further COVID-19 related increases. We also maintained conservative foundations to the balance sheet with strong capital ratios (CET1 ratio: 13.2% / Total Capital Ratio: 17.6%) and purposefully elevated levels of liquidity (LCR1:322%) to add stability to, and support, our future growth ambitions.
We are starting to see encouraging signs of momentum returning to our lending markets, with pipelines now rebuilding. I am also pleased to report the positive trajectory in the Group's payment holiday levels. As at 20 October 2020, we saw 92% of matured payment holidays (by value) having resumed payment or redeemed.
While the economic outlook remains uncertain, our core focus in Q4 is on supporting our people and customers through the ongoing pandemic. I am confident that careful management of our existing loan book, rebuilding momentum in our chosen markets and continued execution of our digitisation strategy positions us well for a successful year in 2021, taking advantage of opportunities as they present themselves.
Payment Holidays as at 20 October 2020:
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A total of 15.8k payment holidays (including extensions) have been granted (
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Property Finance: 83% of customers have matured from their payment holidays (
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Business Finance3: 88% of customers have matured from their payment holidays, of which 89% by value have resumed payments or redeemed. A pool of c.
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Consumer Lending: 69% of customers have matured from their payment holidays, of which 86% by value have resumed payments or redeemed. A pool of c.
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Footnotes: |
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Liquidity coverage ratio. |
2. |
'Still in force' is defined as being where the customer is still on a payment holiday (including extensions), or where the payment holiday has matured and we are in the process of establishing the customer's circumstances to determine whether forbearance would be appropriate. |
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Business Finance includes both Payment Holiday and other COVID-19 related concessions. |
ENQUIRIES
Richard Armstrong
Group Head of Marketing and Insight
07809 493 158
richard.armstrong@shawbrook.co.uk
LEI: 21380071539WSMTM4410
Shawbrook is an independent specialist lending and savings bank serving
Certain information contained in this announcement, including any information as to the Group's strategy, market position, plans or future financial or operating performance, constitutes "forward looking statements". Such forward-looking statements are made based upon the expectations and beliefs of the Group's directors concerning future events impacting the Group, including numerous assumptions regarding the Group's present and future business strategies and the environment in which it will operate going forward, which may prove to be inaccurate. As such, the forward-looking statements contained in this announcement involve known and unknown risks and uncertainties, which may cause the actual results, performance or achievements of the Group or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.