After stalling earlier this year, Shawbrook, the UK specialist lender, is once again dusting off plans for a London IPO. Its private equity backers, BC Partners and Pollen Street Capital, may press ahead within days, potentially valuing the business at up to £2 billion — a hopeful sign for a moribund UK listings market.
The timing is not random. Shawbrook has reported strong recent performance, benefiting from robust lending growth, improved profitability, and reduced credit risk. In the first half of 2025, the bank posted underlying profit before tax of £168.6m, up ~35% year on year, while its return on tangible equity rose to 18.3%.
That said, despite growth in lending, Shawbrook’s 2024 full-year results still showed a slight dip in profits (£294m underlying PBT vs. £302m prior year), partly reflecting investment spend and pressure on margins. While its credit costs (cost of risk) have improved, they remain non-negligible.
All this gives Shawbrook a credible platform: high growth, solid returns, and coverage across specialist commercial and retail credit markets. Its strategy of combining digital tools, underwriting expertise, and multi-channel distribution is pitched as a differentiator.
Still, investors should tread carefully.
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