Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on SHAWBROOK GROUP PLC. We currently have 2 research reports from 1 professional analysts.
|24Mar17 09:04||PRN||Form 8.3 - Shawbrook Group PLC|
|23Mar17 11:11||RNS||Form 8.5 (EPT/RI)|
|23Mar17 10:07||RNS||Form 8.5 (EPT/RI)|
|23Mar17 09:23||PRN||Form 8.3 - Shawbrook Group PLC|
|23Mar17 08:17||RNS||Form 8.5 (EPT/RI) - Shawbrook Group Plc|
|23Mar17 08:15||RNS||Form 8.5 (EPT/RI) - Shawbrook Group Plc|
|22Mar17 15:20||RNS||Form 8.3 - Shawbrook Group Plc|
Frequency of research reports
Research reports on
SHAWBROOK GROUP PLC
SHAWBROOK GROUP PLC
Panmure Morning Note 07-03-2017
07 Mar 17
Shawbrook’s underlying FY2016 PBT of £93m (up 14% YoY) is 2% shy of consensus forecasts (cf. Panmure £94.1m) but the group has shown good underlying trends across the board. Customer loans grew by 22% YoY to £4.1bn, with NIM at 5.6% being better than PG forecast of 5.5%. Loan origination was up 14% to £1.9bn. Cost income ratio improved by 3.2ppt to 45.1% with the group aiming for 35% by FY2020. Credit quality improved in the 2H16 following breach of controls in 1H16 with cost of risk of c40bp in 2H16. Group underlying RoTE at 19.4% was 20bp better than our forecasts. Balance sheet was strong with TNAV increasing by 17% YoY to 152p and CET1 ratio was 13.3% (Cf. Panmure 13.3%). Overall these are a solid set of results and we believe that the bid by PE groups significantly undervalues Shawbrook and we are glad to see that the bid has been rejected by management. We maintain our BUY rating with the stock trading on reported P/TBV of 2.1.
UK CHALLENGER BANKS
16 Feb 17
We initiate coverage of the Challenger banks with BUY recommendations on Aldermore, OneSavings Bank, Shawbrook and Virgin Money, and SELL ratings on CYBG and Metro Bank. We particularly like the specialist lenders as they have avoided direct competition with large UK banks and offer high growth and returns at attractive valuations (helped by the fallout from the Brexit vote) of 2017E PE and P/TBV of 7.5 and 1.6 for RoTE of 23% compared to large UK banks on 18.4 and 0.9 for RoTE of 8%. Among the true challengers we prefer Virgin Money for its 2017E RoTE of 14% for P/BV of 1.1 but are not keen on CYBG as it reminds us of the low growth and returns and continual restructuring costs recently seen at large UK banks, nor Metro Bank for its exorbitant 2017E P/TBV of 3.9 for no profits. Our Top Pick is Shawbrook as it is the most specialised of the lenders.
Another positive verdict
20 Mar 17
Burford’s results for 2016 produced another outstanding set of figures. Revenue grew by 60% to $163.4m with strong growth in the litigation finance business and an additional boost from a secondary sale in the Petersen case. On an underlying basis net income grew to $114m, a 75% increase despite the investment in growing capacity which increased costs. A combination of ongoing investment and gains and increases on valuation saw the fair value of the litigation assets increase 67% to $559m, underpinned by a growth in invested capital to $394m. With the results statement there was an announcement of a further sale of 9% of the Petersen case at a valuation of 20 times the cost of investment.
N+1 Singer - N1S Trend spotting - Strategy update
08 Mar 17
In this new product we present some strategy theme updates arising out of our latest analysis of macro trends and economic data and our innovative Quant work. We also look at upcoming events and suggest topping up on some of our Best Ideas for 2017.
N+1 Singer - Morning Song 22-03-2017
22 Mar 17
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