Shawbrook Bank made underlying profits of £2.6m last year, it has announced, despite an accounting loss before tax of £7.8m
The new bank says it broke even last May after 16 months of trading, and then made a profit for each subsequent month of the year.
In March 2012, Shawbrook acquired Singers Asset Finance (now Shawbrook Asset Finance). The costs associated with this acquisition, alongside investment in infrastructure to support future growth, led to the accounting loss, the bank said.
All of its lending was up, with lending to consumers standing at £29m.
Ian Henderson, chief executive of Shawbrook Bank, said: “These positive results are just the beginning for us. When we launched Shawbrook we knew there was a desire in the market for a new kind of bank, offering common sense decision-making and fast, efficient systems.
“Our results reflect the significant demand that we have experienced from credit-worthy SMEs and individual customers.
“After exceeding our targets in 2012, we are aiming to continue this trend with a significant increase in our lending to businesses and consumers in 2013.”
Meanwhile, Yorkshire and Clydesdale Banks announced half-year pre-tax profits of £54m, compared with a loss of £38m the year before.
The lenders are owned by National Australia Bank (NAB), which is planning to axe 1,400 jobs in the UK by September 2015. The two banks have been subject to continued speculation as to whether they are up for sale.
Chief executive David Thorburn said he would not “fuel the fires” by commenting on the report.
He said: “Good progress has been made in delivering the key outcomes of the strategic review announced last April. Our strategy to become a stronger and more competitive business is proving to be the right one and, while there is more work to be done, there has already been a significant transformation of our business.
“Simplifying our business model to concentrate on our traditional strengths, we have successfully reshaped the geography, risk appetite and the composition of business banking.
“Our support for mortgage customers has also continued with over 9% growth in average mortgage lending balances.”
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