Shawbrook announces intention to float

The challenger bank in hoping to raise £90 million to support “further controlled growth” into existing markets and new sectors.

Shawbrook currently operates in five lending divisions – Commercial Mortgages, Asset Finance, Business Credit, Secured Lending and Consumer Lending.

The lender's customer loans rose 70% in 2014 to £2.3 billion, driven by £1.4 billion of new loans to UK businesses and consumers, and saw pre-tax profits rise 191% to £49.1 million.

Sir George Mathewson, chairman of the bank, is expected to step down following a successful float.

The announcement comes just three days after Aldermore saw a successful first day on the stock exchange. Virgin Money, TSB and OneSavings Bank have all listed in the past year.

Richard Pyman, Chief Executive Officer of Shawbrook, said:

"We are delighted to announce our intention to float which marks the next stage in our growth story. In the four years since our foundation, we have built a business that provides UK customers with a fresh, pragmatic approach to lending and savings built on traditional values of respect, care, good sense and thoughtful judgement.

“Our focus on specialist teams, working in carefully selected markets and with a human approach to decision-making to deliver excellent customer service, has enabled us to develop a clearly differentiated business with impressive returns. It has enabled us to build a diversified, well-collateralised and growing book, increasing customer loans by over £900 million to £2.3 billion in the year to 31 December 2014, while achieving an underlying profit before tax of £49.1 million, all supported by a prudently structured retail deposit funding base.

“We believe we are well-positioned to achieve long-term sustainable growth and that Shawbrook will become an increasingly well-known name in the specialist world of British banking.”