New bank entrant breaks even one year since launch
One of the UK’s youngest banks, which specialises in savings and lending, has broken even less than one year since it launched, according to its results.
Shawbrook Bank has reached its break-even point with loan assets of £600m, £725m in deposits and total assets of £850m, representing a four-fold increase on the bank’s position when it launched in October 2011.
Philip George, interim chief executive for Shawbrook Bank, said: “Breaking even so soon is a huge achievement for Shawbrook and an exciting moment in our journey as a new bank.
“We launched at a tough time for the banking sector, but we had confidence in the public appetite for a bank that takes a no-nonsense approach to savings and lending. The response we’ve had since launch has been overwhelming.”
Mr George said Shawbrook is a specialist savings and lending bank that offers its customers a modern take on the existing banking model, such as treating its customers like individuals and making ‘common sense’ lending decisions.
The bank has built a base of 18,000 loan customers and 18,500 savers, and is committed to making it easier and more straightforward for small and medium-sized enterprises to grow.
Mr George said: “We know how difficult things are at the moment for small businesses who want to borrow. Each day we speak to hard working, credit-worthy SMEs who are struggling to find loans from the high street, even though they are in a position to grow.
“We believe in common sense lending. We’re committed to giving small businesses and individuals straightforward loans based on sensible decision making.”
Shawbrook’s acquisition of Singers Asset Finance earlier this year helped to accelerate growth and drive expansion of the bank’s range of secured lending products for SMEs.
Mr George said there were also “big plans” in the pipeline for more “straightforward products” to help SMEs and individuals.
Shawbrook formed from three existing financial businesses: Whiteaway Laidlaw Bank, Link Loans and the lending platform of Commercial First.
The lending platform of Commercial First and Link Loans became part of WLB in March 2011 and August 2011 respectively. In March 2012 Shawbrook acquired Singers Asset Finance to expand its lending offer to SMEs.