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Former RBS chief at reins of new bank

Mathewson leads challenger bank Shawbrook to flotation

George MathewsonFormer Royal Bank of Scotland chairman and chief executive Sir George Mathewson is to lead another bank on to the stock market.

Sir George (pictured) has been chairman of Shawbrook, the challenger bank, since it was formed in 2011 as one of a number of new “challenger” banks that sprung after the financial crash of 2008.

It has built a business model focused on providing loans to small and medium-sized businesses.

Sir George, however, has indicated that he will only see the  company through admission to the London Stock Exchange and that he will step down once a suitable successor has been identified.

Shawbrook is targeting customers in towns that are served poorly by the larger high street banks and has made more than 60,000 loans.

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.”

The bank has a £2.3 billion loan book supported by a retail deposit base and achieved an underlying profit before tax last year of £49.1 million.

“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,” said Pyman.

The directors believe the group’s attractive long-term growth prospects will support a dividend policy which reflects the strength of its capital position and business.

Based on the directors’ anticipated growth profile for the Group, the directors are targeting a modest maiden dividend in respect of the financial year ending 31 December 2016, rising to a target of 30% of post-tax statutory profits in respect of the financial year ending 31 December 2017 with a progressive policy thereafter.

Photo: BBC.

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