Interim report
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shawbrook 20 26 Shawbrook Group plc Interim Financial Report Real world banking .
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Shawbrook Group plc | Interim Financial Report 2026 2 Financial Highlights Note: Reconciliation from underlying to statutory results is provided on page 11. 1 Underlying return on tangible equity excludes the £8.4 million premium and the £1.9 million release of transaction costs (and associated tax impacts) arising from the May 2026 tender of the Group’s existing AT1 issuance. Statutory return on tangible equity includes a deduction of £16.8 million in respect of AT1 whilst underlying return on tangible equity includes an AT1 coupon of £6.5 million. 2 Includes loans classified as assets held for sale of £276.9 million. Shawbrook provides specialist finance to a broad and diverse range of customer segments, each of which values the flexibility, speed and certainty we deliver. Sustainable returns £195.5 million Underlying profit before tax (H1 2025: £168.6 million) £194.6 million Statutory profit before tax (H1 2025: £163.1 million) 18.1% Underlying return on tangible equity1 (H1 2025: 18.3%) 17.1% Statutory return on tangible equity (H1 2025: 17.6%) 26.5 pence Underlying basic EPS (H1 2025: 23.1 pence) 25.3 pence Statutory basic EPS (H1 2025: 22.1 pence) Disciplined growth and efficiency 10% Annualised growth in loan book including OTD to £20.1 billion2 (FY 2025: £19.2 billion) 36.4% Underlying cost to income ratio (H1 2025: 40.0%) 36.6% Statutory cost to income ratio (H1 2025: 41.7%) Robust, resilient foundations 57bps Cost of risk (H1 2025: 42bps) 13.0% CET1 ratio (FY 2025: 12.4%) 16.4% Total capital ratio (FY 2025: 14.8%)
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Shawbrook Group plc | Interim Financial Report 2026 3 Contents 2 Interim Management Report 4 Our Strategy 5 Specialist lending business model 6 FY 2026 guidance 7 Chief Executive Officer’s statement 9 Unlocking the next phase of efficiency gains with AI 10 Financial review 14 A diversified offering across four core specialist segments 15 Business review 20 Interim Risk Report 21 Approach to risk management 22 Top and emerging risks 24 Principal risks 48 Statement of Directors’ Responsibilities 50 Independent Review Report 52 Interim Financial Statements 53 Condensed consolidated statement of profit and loss 54 Condensed consolidated statement of comprehensive income 55 Condensed consolidated statement of financial position 56 Condensed consolidated statement of changes in equity 57 Condensed consolidated statement of cash flows 58 Notes to the interim financial statements 76 Other information 77 Abbreviations 78 Other performance indicators 78 Alternative performance measures 82 Forward-looking statements shawbrook.co.uk linkedin.com/company/shawbrook-bank
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Shawbrook Group plc | Interim Financial Report 2026 4 Our Strategy Our strategy is underpinned by five strategic advantages that differentiate our business and support consistent performance. Together, they create a resilient and scalable specialist banking model, enabling us to deploy capital selectively, manage risk through the cycle, and deliver sustainable shareholder returns. Diversified markets We operate across a broad and growing total addressable market (TAM), providing flexibility in capital deployment and access to multiple structural growth opportunities across multiple asset classes and customer segments. This diversification enables us to grow selectively and optimise returns through different economic conditions. • c.£300 billion TAM1 • 4 core segments Specialist at scale We deliver specialist lending through a multi-brand portfolio and diversified distribution model, combining deep market expertise with the benefits of scale. Our unified operating platform, increasingly supported by automation and AI, delivers efficiency, consistency and operating leverage as the business grows. • 12 lending verticals • Multi-brand portfolio Technology-enabled Our scalable, technology and data-enabled platform enhances customer experiences and supports operating leverage across both our lending and deposit businesses. This allows us to scale at low incremental cost, strengthening efficiency, while maintaining robust controls and resilience. • 21% of FTE in digital roles • 3x delivery velocity compared to 20232 Credit discipline Disciplined underwriting and forward-looking risk management underpins our approach to credit, supported by deep specialist expertise and advanced data and technology. This focus on credit excellence has delivered a stable cost of risk across varying macroeconomic conditions. • 49bps/29bps median cost of risk/write offs net of recoveries3 • c.200 early warning indicators through 140 Power BI dashboards Entrepreneurial culture Our experienced management team and entrepreneurial culture enable agile decision-making, disciplined execution and long-term value creation. We prioritise organic growth, complemented by selective, value-accretive M&A in adjacent specialist markets where opportunities meet our strategic, risk and returns criteria. • 25 M&A transactions since inception • 8+ years average tenure of Senior Management Team 1 The Group’s lending TAM grew to c.£300 billion as at 31 December 2025 based on Group information (including data based on estimates from a leading consulting firm). 2 Delivery velocity measures the speed at which our technology teams design, build and deploy new features and improvements. 3 Median cost of risk and write offs net of recoveries calculated over the period FY 2017 to H1 2026.
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Shawbrook Group plc | Interim Financial Report 2026 5 Multi-channel distribution Direct Partners Inorganic Digital £20.7bn total funding Credit excellence and disciplined risk management Specialist teams Data-driven decisioning Clear risk ownership A common operating architecture enabling efficient growth and consistent delivery Cross-functional Modular technology AI and automation A resilient, deposit-led funding base supporting lending growth through the cycle A specialist lending business model delivering resilient returns through the cycle Our differentiated proposition supports strong demand and attractive margins, funded efficiently through our deposit platform. Data-led risk management, scalable technology and disciplined capital allocation underpin resilient growth and the consistent delivery of sustainable, attractive risk-adjusted returns. Note: Segmental loan book splits presented on this page do not total the Group’s total loan book number due to rounding. 1 Includes the carrying amount of all structured asset sales derecognised through our originate-to-distribute (OTD) strategy of £2.5 billion. 2 Includes loans classified as assets held for sale of £276.9 million. Differentiated propositions across diversified market SME £4.8bn loan book • Financial sponsors • Speciality finance • Corporate leverage • Asset based lending • Development finance • Digital business lending Real Estate £7.9bn loan book • Buy-to-let • Commercial investment • Bridging Retail Mortgage Brands £6.5bn1 loan book • Buy-to-let • Owner- occupied mortgages Consumer Finance £1.0bn2 loan book • Motor finance Enabled by an efficient and scalable operating model Underpinned by capital strength and balance sheet resilience £18.8bn deposits Disciplined capital allocation Balance sheet optimisation In-house markets and funding expertise • Capital generative model supporting robust capital ratios • Disciplined deployment aligned to risk appetite and returns • Resilient balance sheet with strong liquidity and funding buffers • Active optimisation across assets, funding and liquidity • Deep in-house capability across funding, liquidity and risk • Flexible access to diversified funding sources
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Shawbrook Group plc | Interim Financial Report 2026 6 FY 2026 guidance We are reiterating FY 2026 guidance across all metrics, with medium-term guidance1 remaining unchanged Loan book (including OTD) c.£21 billion Cost to income ratio <38% CET1 ratio >13.2% (pre-Basel 3.1)2 Underlying return on tangible equity3 c.17% Dividend policy Maiden ordinary dividend in respect of FY 2026, payable in FY 2027 1 Medium-term guidance: Loan book growth of low double digits (based on a CAGR from FY24); Cost to income ratio of mid 30s; Underlying profit before tax growth of mid-high teens; Underlying return on tangible equity of high-teens; progressive build of ordinary dividend and a CET1 ratio of 12-13%. 2 The CET1 ratio guidance includes the foreseeable dividend expected to be paid in 2027. 3 RoTE computed on CET1 assuming a Target CET1 Ratio of 12.5%. FY 2026 guidance
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Shawbrook Group plc | Interim Financial Report 2026 7 Shawbrook delivered a strong first half, achieving efficient growth across our specialist markets through the disciplined execution of our strategy. We maintained credit resilience, focused new lending on the most valuable opportunities, and optimised our capital position. The progress we have made in the first six months reinforces our confidence in achieving our FY 2026 guidance. Sustained, disciplined execution across specialist segments We continued to grow selectively across our specialist markets and took advantage of favourable conditions in capital markets to optimise our balance sheet and returns. Underlying profit before tax rose by 16% to £195.5 million (£194.6 million on a statutory basis), while underlying return on tangible equity was 18.1%1 (17.1% on a statutory basis), reflecting the quality and resilience of the platform we have built. Net lending growth continued across our core markets, with the loan book growing at 10% on annualised basis to reach £20.1 billion2 (FY 2025: £19.2 billion) inclusive of £1.3 billion of originate-to-distribute (OTD) activity during the period. SME Our SME proposition continues to focus on the segment we refer to as the ‘critical middle’, established and growing businesses that value specialist, relationship-led funding but are often underserved by more generalist lenders. The Shawbrook and ThinCats brands now deliver complementary specialist propositions that span the needs of these businesses, giving us greater breadth and depth in this market. Playter adds a further dimension: a technology-enabled platform and digital distribution capability, built to support UK SMEs that will become the next generation of critical middle businesses as they grow. Our combined capabilities and coverage give us a strong position in the SME market where demand remains durable and relationship-led service is highly valued. This is supported by our balance sheet strength, credit expertise and disciplined underwriting that define our wider specialist model. Real Estate In Real Estate, we continued to focus on professional property investors, with demand increasingly driven by sophisticated ownership structures where our specialist underwriting expertise and flexible approach are most valued. We launched a new social housing proposition during the period, supporting landlords to diversify and expand their portfolios while increasing the supply of much-needed housing. Retail markets Within Retail, we refocused our Consumer Finance activity, exiting unsecured personal lending and the forward flow arrangement with Blue Motor Finance, Limited (Blue Motor Finance) reallocating capital towards our high-end vehicle finance proposition, JBR Capital Limited (JBR), where we see more attractive risk-adjusted returns and a stronger fit with our specialist model. 1 Underlying return on tangible equity excludes the £8.4 million premium and the £1.9 million release of transaction costs (and associated tax impacts) arising from the May 2026 tender of the Group’s existing AT1 issuance. Statutory return on tangible equity includes a deduction of £16.8 million in respect of AT1 whilst underlying return on tangible equity includes an AT1 coupon of £6.5 million. 2 Includes loans classified as assets held for sale of £276.9 million. Chief Executive Officer’s Statement “We delivered a strong first half, with underlying profit before tax up 16% to £195.5 million and an underlying return on tangible equity of 18.1%. These results reinforce our confidence in meeting our FY 2026 guidance." Marcelino Castrillo Chief Executive Officer
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Shawbrook Group plc | Interim Financial Report 2026 8 Continuing to deliver efficient growth Our investment in digital and technology provides us with a platform to deliver efficient growth. The underlying cost to income ratio improved to 36.4% in H1 2026 (36.6% on a statutory basis) from 40.0% a year earlier, as income continues to significantly outpace cost growth. This reflects deliberate choices across organisational design, our estate footprint and technology stack, with the benefits compounding over time. Our scalable technology platform is increasingly enhanced by AI, which we are deploying at each stage of the lending lifecycle. This is augmenting the judgement of our people, freeing them to focus on the more sophisticated, higher-value work where their expertise matters most. AI represents the next wave of efficiency gains layered on top of these foundations, rather than a substitute for them. In Real Estate, for example, AI now synthesises transaction data, credit history, valuations and portfolio exposure into a single document for underwriter review and automates the production of annual portfolio reviews. In each case, specialist judgement remains at the centre. AI increases the capacity and speed with which our people can apply it, without compromising the specialist proposition we deliver. Resilient credit quality The overall quality of our loan book remains strong, with the cost of risk of 57bps consistent with the Group’s historical level of credit performance. The modest uptick in cost of risk during the period relates to further impairments taken against a small legacy development finance vintage that we continue to work through. These cases are taking longer to resolve than expected, reflecting the time required to complete individual asset disposal processes across a small number of legacy positions. We remain confident in the overall quality and resilience of the portfolio. Capital strength and markets execution Our capital position is strong, with CET1 increasing to 13.0% in the period, reflecting ongoing accretion from earnings alongside the execution of capital markets activity during H1. In May, we issued a new £250 million AT1 instrument at materially lower coupon of 8.375%, alongside a tender for the existing instrument at a rate under which c.85% of the outstanding principal was tendered. We also progressed our OTD strategy through a new securitisation and the disposal of the retained notes in an existing transaction. Together, these actions strengthened our balance sheet, optimised our capital structure and diversified our funding base, while supporting shareholder returns. Our deposit base grew to £18.8 billion, benefiting from lower interest rates through 2025. The savings market has become more competitive in recent months; we have navigated similar periods before, and our digital savings proposition and diversified network of savings partnerships continue to support growth and provide flexibility to manage cost. Looking ahead We are cognisant of the macro-economic background, but we see significant opportunity across our specialist markets to grow selectively, focused on lending that meets our risk and return requirements. We remain focused on delivering sustainable returns for shareholders. The progress made in H1 reinforces our confidence in meeting our FY 2026 guidance and paying a maiden ordinary dividend in FY 2027 in respect of FY 2026 earnings.
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Shawbrook Group plc | Interim Financial Report 2026 9 Unlocking the next phase of efficiency gains with AI Shawbrook’s approach to AI Our ‘best-of-both’ model combines the deep expertise and knowledge of our colleagues with advanced digital, tech and data capabilities to deliver excellent customer experiences efficiently and at scale. AI amplifies this approach by increasingly doing the heavy lifting on repetitive tasks to allow our people to spend more time applying their judgement where it matters most. Over the past six months we have continued to roll out Generative AI to our colleagues across the Group, providing training and guidance to help get the most out of the tools. Real world impact, today “We receive funding requests from developers across the country, every day. These businesses need supportive, specialist lenders and time is often critical. That’s why we built Origin, an AI-enabled tool that enables us to respond faster, offering near-instant initial responses and same-day indications of terms. Trained using years of data and our knowledge of the sector, this technology is amplifying our capacity and delivering faster responses, more certainty and confidence to prospective customers. The downstream impact of the technology is ultimately more time for our team to be face-to-face with these clients on site, where their expertise matters most.” Neil Rudge, Chief Banking Officer Origination We have built a multi-agent system to triage inbound enquiries within SME and produce Indication of Terms The system creates same-day Indication of Terms for qualifying deals, potentially saving days per deal and increasing conversions Underwriting We have developed a system in Real Estate that synthesises information and generates documents for valuation review We are targeting a reduction in time spent on these underwriting tasks by up to 50% and identify and address risks sooner Portfolio Management We have created a Real Estate Portfolio Management Agent that automates annual portfolio reviews We are targeting a reduction in annual review turnaround time to less than a day c.85% of code written by AI agents in Digital Business Lending 350+ custom AI tools built by colleagues for personal productivity Agentic workflows As we seek to build and deploy agents that synthesise information and execute actions across all functions of the Group, people will be elevated to provide oversight, judgement, and tacit knowledge that feeds back into the system. We have built and are testing agentic systems at each stage of the loan cycle.
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Shawbrook Group plc | Interim Financial Report 2026 10 Performance indicators Definitions of all metrics included in the following tables are provided on pages 78 to 81. Financial performance metrics In the period ended 30 June 2026, there are underlying total adjustments of £(0.9) million (30 June 2025: £(5.5) million) (see page 11). The following table is shown on both a statutory and underlying basis. Underlying Statutory For the six months ended 30 June (Unaudited) 2026 2025 Change 2026 2025 Change Gross asset yield (%) 8.8 9.3 (0.5) 8.8 9.3 (0.5) Liability yield (%) (4.4) (5.0) 0.6 (4.4) (5.0) 0.6 Net interest margin (%) 4.38 4.35 0.03 4.38 4.35 0.03 Net interest margin (%) (excl. gain on sale) 4.09 4.05 0.04 4.09 4.05 0.04 Cost to APE efficiency ratio (%) (1.59) (1.74) 0.15 (1.61) (1.81) 0.20 Cost to income ratio (%) 36.4 40.0 (3.6) 36.6 41.7 (5.1) Cost of risk (%) (0.57) (0.42) (0.15) (0.57) (0.42) (0.15) Return on lending assets before tax (%) 2.2 2.2 – 2.2 2.1 0.1 Return on tangible equity (%) 18.1 18.3 (0.2) 17.1 17.6 (0.5) Return on tangible equity (calculated using actual TNAV) (%) 17.0 17.0 – 16.0 16.3 (0.3) Earnings per share (basic) (pence) 26.5 23.1 14.71 25.3 22.1 14.51 Financial review “H1 2026 has been a period of disciplined financial execution with underlying return on tangible equity of 18.1% and a CET1 ratio of 13.0%, up c.60bps from December 2025. Underlying basic earnings per share grew by c.15% to 26.5p, while our cost to income ratio fell to 36.4%, continuing its downward trajectory and demonstrating the efficient growth our platform is able to consistently generate. The performance reported today gives us momentum and confidence to deliver both our FY 2026 and medium-term guidance, which remain unchanged.” Dylan Minto Chief Financial Officer 1 Percentage change year on year. All other changes in this column are shown as the absolute change in percentage points.
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Shawbrook Group plc | Interim Financial Report 2026 11 Financial position metrics 30 Jun 2026 (Unaudited) 31 Dec 2025 Change %1 Assets and liabilities Loan book (£m) 17,672.42 17,794.7 (0.7) Loan book (£m) including OTD assets 20,133.72 19,167.2 5.0 Average principal employed (£m) 17,828.5 16,182.2 10.2 Customer deposits (£m) 18,798.8 18,353.5 2.4 Wholesale funding (£m) 1,932.9 1,842.9 4.9 Liquidity Liquidity coverage ratio (%) 165.9 147.2 18.7 Capital and leverage Common Equity Tier 1 capital ratio (%) 13.0 12.4 0.6 Total Tier 1 capital ratio (%) 15.1 13.4 1.7 Total capital ratio (%) 16.4 14.8 1.6 Leverage ratio (%) 8.7 7.8 0.9 Risk-weighted assets (£m) 12,476.9 12,003.2 3.9 The following adjustments have been excluded from the underlying results: • Corporate activity costs: costs incurred in H1 2026 primarily relating to post-acquisition integration of ThinCats Group Limited (ThinCats) and Playter, and recognition of Playter deferred remuneration (H1 2025: costs primarily relating to potential acquisition opportunities). • IPO-related costs: final costs incurred in H1 2026 in connection with the Group's listing on the London Stock Exchange (H1 2025: costs incurred in preparation of the Group listing on the London Stock Exchange). • Provisions for liabilities and charges: a £1.0 million credit relating to the reduction in the Group’s Timeshare provision during the period, reflecting reduced claim volumes and case closures, net of a corresponding decrease in the associated insurance reimbursement asset (H1 2025: £nil) (see Note 21 on page 67). Additional reconciliation from underlying to statutory results is provided in Note 8 on page 61. Summary of underlying results for the period For the six months ended 30 June (Unaudited) 2026 £m 2025 £m Change % Operating income3 777.0 719.3 8.0 Interest expense and similar charges (389.8) (383.8) 1.6 Net operating income 387.2 335.5 15.4 Administrative expenses (141.0) (134.3) 5.0 Impairment losses on financial assets (50.7) (32.6) 55.5 Provisions for liabilities and charges – – n.m.4 Total operating expenses (191.7) (166.9) 14.9 Underlying profit before tax 195.5 168.6 16.0 Underlying adjustments Corporate activity costs (1.0) (2.4) (58.3) IPO-related costs (0.9) (3.1) (71.0) Provisions for liabilities and charges 1.0 – n.m.4 Total underlying adjustments (0.9) (5.5) (83.6) Statutory profit before tax 194.6 163.1 19.3 Tax (48.4) (43.6) 11.0 Statutory profit after tax 146.2 119.5 22.3 1 Change % reflects percentage change for balance sheet metrics; change for ratio metrics are shown as the absolute change in percentage points. 2 Includes loans classified as assets held for sale of £276.9 million. 3 Includes interest income calculated using the effective interest rate method, other interest and similar income, net operating lease income, net fee and commission income, net gains on derecognition of financial assets, net gains/(losses) on derivative financial instruments and hedge accounting and net other operating income/expense. 4 n.m. (not meaningful) indicates that a percentage comparison is not meaningful due to size of the prior period balance or because the movement is between positive and negative numbers.
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Shawbrook Group plc | Interim Financial Report 2026 12 Financial commentary Strong profitability delivered through disciplined execution Underlying profit before tax increased by 16.0% to £195.5 million (H1 2025: £168.6 million), reflecting continued strategic execution and efficient growth. This translated into an underlying return on tangible equity of 18.1%1 (H1 2025: 18.3%), which includes the benefit of £25.8 million gain on sale recognised on the two OTD transactions completed in the period. Net operating income increased to £387.2 million (H1 2025: £335.5 million). Loan book (including OTD) grew to £20.1 billion2, driven by selective origination across our specialist segments. The loan book on balance sheet of £17.7 billion2 at 30 June 2026 (31 December 2025: £17.8 billion) reflects £1.3 billion of TML gross loans transferred off balance sheet during H1 through our OTD transactions, supporting capital and liquidity management, alongside continued reshaping of our Consumer Finance mix towards JBR. Liability yield was 4.4% in H1 2026 (H1 2025: 5.0%), reflecting the benefit of lower interest rates through 2025. Competitive pressures in the retail savings market have moved rates above SONIA in recent months and have started to influence the cost of new funding in parts of the market. With our broad product suite and diversified funding base, we have been resilient in navigating periods of heightened deposit competition before, however, should this trend continue, we expect it to place modest upward pressure on our cost of deposits. Gross asset yield was 8.8% in the first half of the year (H1 2025: 9.3%), reflecting repricing of the portfolio in line with prevailing swap rates. Net interest margin increased to 4.38% (H1 2025: 4.35%), reflecting the improvement in our funding mix and benefitting from the gain on sale recognised through our OTD activity during the period. Excluding this gain, net interest margin increased to 4.09% (H1 2025: 4.05%). Structural efficiency improvements, on track towards medium-term guidance We continued to deliver efficient growth in H1 2026, with income continuing to outgrow costs. This reflects the structural foundations we have built through deliberate investment in technology, organisational design and disciplined cost management. As a result, the underlying cost to income ratio reduced to 36.4% (H1 2025: 40.0%) and the cost to APE efficiency ratio improved to 1.59% (H1 2025: 1.74%). Looking ahead, we see further efficiency opportunity as AI becomes increasingly embedded across our operations. Underlying administrative expenses of £141.0 million (H1 2025: £134.3 million) increased by 5%, reflecting continued investment in the Group’s platform. On a comparable basis, adding the annualised cost impact of the ThinCats and Playter acquisitions, both completed in H2 2025, administrative expenses would have reduced by 5% from H1 2025 to H1 2026. At 36.4%, our underlying cost to income ratio remains comfortably within our FY 2026 guidance of <38%, and on a clear trajectory towards our medium-term cost to income guidance of mid-30s%. Underlying credit quality resilient Our data-driven approach to risk management continues to support disciplined credit management across the portfolio. Impairment losses on financial assets during the period were £50.7 million (H1 2025: £32.6 million), with the increase driven by identified, actively managed exposures. This translates into a cost of risk of 57bps (H1 2025: 42bps; FY 2025: 51bps on a statutory basis). The 57bps cost of risk includes c.£2.6 million of day-one expected credit loss recognised on the acquisition of the c.£160 million ThinCats portfolio in March 2026; this was an off-balance sheet loan book held by ThinCats that we acquired back on balance sheet. Excluding this item, the cost of risk is 54bps. Stage 3 balances and impairments continue to be impacted by a pre-2022 development finance vintage. This vintage comprises the same portfolio communicated at FY 2025, loans originated pre-2022 and underwritten before the sharp increase in building costs and interest rates which impacted developers from Q4 2022. These cases were classified as Stage 3 at FY 2025, remained in Stage 3 at H1 2026 and had a gross loan book of £147.6 million, with coverage increasing to 34.9% (FY 2025: 25.9%). Excluding both items, the cost of risk was 37bps, which sits well within our historical range. The Group’s expected credit loss coverage increased from 1.14% at December 2025 to 1.35% at 30 June 2026. Taken together with our flat arrears’ ratio of 1.7% (Q1 2026: 1.7%) (FY 2025: 1.6%) and write-offs (net of recoveries) of 13bps (H1 2025: 30bps), the portfolio continues to perform in line with our expectations. Following a review of our impairment models, we retained the economic scenario weightings applied as of 31 December 2025, with the combined probability of downside and severe downside scenarios remaining at 40%. 1 Underlying return on tangible equity excludes the £8.4 million premium and the £1.9 million release of transaction costs (and associated tax impacts) arising from the May 2026 tender of the Group’s existing AT1 issuance. Statutory return on tangible equity includes a deduction of £16.8 million in respect of AT1 whilst underlying return on tangible equity includes an AT1 coupon of £6.5 million. 2 Includes loans classified as assets held for sale of £276.9 million.
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Shawbrook Group plc | Interim Financial Report 2026 13 Strong capital position supports balance sheet optimisation and funding diversification CET1 accretion of c.60bps to 13.0% (31 December 2025: 12.4%), reflects strong organic capital generation from earnings retention, together with the capital efficient impact of our OTD. In May, we issued a new £250 million AT1 instrument in conjunction with a tender to redeem the existing £124 million instrument, under which c.85% of the outstanding principal was tendered, at a purchase price of 108.0% of principal, resulting in a materially lower coupon. This increased our total capital ratio to 16.4% at 30 June 2026 (31 December 2025: 14.8%) and further optimised our capital structure. Total risk-weighted assets were £12,476.9 million (31 December 2025: £12,003.2 million), representing 70.6% of the total loan book1. Total regulatory capital requirements, including CRD buffers, remained at 13.74%, including a Pillar 2A requirement of 1.24%. With total regulatory capital of £2,052.1 million (31 December 2025: £1,776.7 million), we remain comfortably above regulatory requirements and well positioned to absorb the potential impact of future changes to regulatory capital requirements under Basel 3.1. The leverage ratio was 8.7% (31 December 2025: 7.8%), significantly above the minimum requirement of 3.25%. Our balance sheet is predominantly funded by retail and SME deposits, with customer deposits growing to £18.8 billion (31 December 2025: £18.4 billion). This reflects the continued strength of our digital savings proposition and our wide- ranging network of savings and wealth partnerships. Continued investment in our digital savings platform, combined with our trusted brand and high service quality, supports both deposit retention and new customer acquisition. We also continue to leverage wholesale funding markets and maintain access to the Bank of England's Sterling Monetary Framework, including a reserves account. During H1 2026, as part of our OTD strategy, we sold all our retained notes in the £0.5 billion Lanebrook Mortgage Transaction 2024-1 and completed the Aldbrook Mortgage Transaction 2026-1, a £0.8 billion securitisation of buy-to-let and owner-occupied mortgage loans originated by TML, our thirteenth securitisation to date. The Class B to X Notes and Residual Certificates were pre-placed with investors, while we retained the Class A Notes, providing balance sheet flexibility and further diversifying our liquidity sources. The success of our securitisations, in part, reflects the quality of the loans we originate which must meet the same credit and financial criteria as we apply across our loan books. Together these transactions demonstrate our routine access to wholesale capital markets, which we will continue to access when the markets are favourable to optimise shareholder returns. We continue to maintain a prudent liquidity position, with a liquidity coverage ratio (LCR) of 165.9% (31 December 2025: 147.2%), comfortably above the regulatory minimum. This increase reflects continued growth in withdrawable central bank reserves held within the liquidity buffer, further strengthening the Group's already robust liquidity position. 1 Includes loans classified as assets held for sale of £276.9 million.
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Shawbrook Group plc | Interim Financial Report 2026 14 A diversified offering across four core specialist segments 12 lending verticals sit within these four segments, each addressing a distinct part of the specialist lending market. This diversification is underpinned by a consistent set of Group-wide capabilities: asset excellence, multi-channel origination, stable, scalable funding, specialist underwriting expertise and innovation and agility. SME Real Estate Retail Mortgage Brands Consumer Finance £4.8 billion loan book £7.9 billion loan book £6.5 billion1 loan book £1.02 billion loan book 24% of Group Loan Book 39% of Group Loan Book 32% of Group Loan Book 5% of Group Loan Book Note: Segmental loan book splits presented on this page do not total the Group’s total loan book number due to rounding. 1 Includes the carrying amount of all structured asset sales derecognised through our originate-to-distribute (OTD) strategy of £2.5 billion. 2 Includes loans classified as assets held for sale of £276.9 million. 4 core segments 12 lending verticals £20.1 billion loan book (incl OTD)2 Supports established and growing UK businesses - the critical middle - that require specialist, bespoke, relationship-led funding often underserved by mainstream lenders. Our markets • Financial sponsors • Speciality finance • Corporate leverage • Asset based lending • Development finance • Digital business lending Competitive and structural advantages • Long-standing market and credit experience, with a broad range of funding solutions • Digital application and fulfilment with embedded credit decisioning through Playter Delivers specialist funding solutions to portfolio landlords and experienced property professionals who generate diversified income from multi-property portfolios across residential and commercial property. Our markets • Buy-to-let • Commercial investment • Bridging Competitive and structural advantages • Specialist credit underwriting, combining experienced judgement with structured risk management • Digital and data capabilities supporting consistent execution across the lending lifecycle Our TML and BML brands provide owner- occupied and buy-to-let mortgages to individuals and property professionals across the UK, including those with complex income and credit profiles. Our markets • Buy-to-let mortgages • Owner-occupied mortgages Competitive and structural advantages • Data-informed decisioning supported by experienced underwriters • Established intermediary network with long- standing broker relationships Provides specialist finance within the high-end vehicle market through our JBR brand, serving high-net-worth individuals and entrepreneurs with strong credit profiles. Our markets • Motor finance Competitive and structural advantages • Data-informed assessment supported by experienced underwriters • Established multi-channel distribution, including dealer, broker and digital partnerships
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Shawbrook Group plc | Interim Financial Report 2026 15 Business review Commercial: SME Our SME proposition is focused on the critical middle; established and growing businesses that require specialist, relationship-led funding but are often underserved by the more mainstream lenders. Through a comprehensive product portfolio spanning traditional sectors and the new economy, we provide funding for strategic events, working capital and capital investment. The segments we focus on benefit from embedded repeat demand, particularly among property developers, financial sponsors and speciality finance providers who value the certainty, structuring expertise and relationship- led approach we deliver. Our model combines deep credit expertise, disciplined underwriting and active portfolio management. Through our digital lending platform, Playter, we provide unsecured lending to UK SMEs through short-term cashflow loans, credit lines, term loans and professions finance using automated, data-led underwriting powered by Open Banking and accounting integration to deliver streamlined credit decisions. H1 2026 SME achievements • Completed the integration of ThinCats into our Corporate leverage proposition, establishing clear brand positioning and a defined go-to-market strategy; and increasing our share of the SME market; • Consolidated our existing digital unsecured lending proposition under the Playter brand, providing growth- focused UK small businesses with speed, simplicity and breadth of funding available through its AI-native platform; • Further enhanced our already robust audit and assurance activity in Speciality and Fund Finance, building on our established oversight and control across the portfolio; • Updated our financial sponsors product to support larger transactions with established sponsors, within our existing risk appetite and underwriting discipline; and • Piloted a multi-agent system in development finance, that triages inbound enquiries and produces an indication of terms in minutes for qualifying deals. This improves speed and consistency of response, while underwriters retain full accountability for decisions. Looking ahead Looking ahead, the SME market is expected to remain resilient, with businesses continuing to navigate cost pressures, changing customer demand and an evolving funding environment. Against this backdrop, our focus remains on sustainable, disciplined growth, deepening relationships with existing clients while selectively expanding in markets where we have expertise and strong risk visibility. Having completed the integration of ThinCats, including the c.£160 million book purchase, and continued to scale Playter across targeted SME segments, our opportunity is to build our share across the critical middle, from the digital unsecured proposition through Playter to the larger, more complex transactions served through ThinCats and our core Shawbrook proposition. Playter's AI-native underwriting will continue to support faster, more consistent credit decisions, and the launch of a new CRM system will strengthen relationship management and support more consistent, data-led engagement across the customer lifecycle. M agenda Click here to download our research piece on the 'M agenda'.
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Shawbrook Group plc | Interim Financial Report 2026 16 Business review Commercial: Real Estate Our Real Estate proposition delivers specialist funding solutions to portfolio landlords and experienced property professionals who generate diversified income from multi- property portfolios across residential buy-to-let and commercial investment. We offer a broad range of residential, commercial and short-term loan products through an established network of commercial brokers. Our distribution reach, combined with deep real estate expertise and disciplined underwriting, enables us to serve a range of property investors and loan sizes. Continued investment in our digital and data capabilities supports consistent and efficient execution across the lending lifecycle, from origination to sophisticated product transfers. During H1 2026, we continued to strengthen our Real Estate proposition, expanding our specialist product offering, enhancing our operating model and investing in the capabilities needed to scale our proposition. Specialist judgement remains at the core of our proposition, increasingly supported by AI embedded across the lending lifecycle. H1 2026 Real Estate achievements • Embedded AI across underwriting and portfolio management, targeting up to 50%1 faster preparation time in underwriting and a reduction in annual portfolio review turnaround to less than a day; • Launched a Social Housing proposition, supporting landlords to diversify and expand their portfolios while increasing the supply of much-needed housing in an underserved market; • Introduced a dedicated Purpose-Built Student Accommodation product, with tailored pricing and lending appetite to strengthen our offering in a key specialist sector; • Enhanced our structured real estate proposition, introducing a relationship managed service for £2.5 - £10 million loans and expanding our bespoke, relationship-led proposition for £10 million+ mid-market transactions; • Strengthened our bridging proposition through system enhancements, streamlining the process to support underwriters in making quicker decisions; and • Enhanced our lending platform pricing capabilities, reducing the time required to implement pricing changes to less than half a day, enabling a faster response to changing market conditions. Looking ahead Looking ahead, the specialist real estate market continues to present attractive opportunities. Structural change in the buy-to-let sector is driving demand from professional landlords, while emerging segments such as Social Housing and Purpose-Built Student Accommodation open further opportunities for sustainable growth as customers adapt to evolving market and regulatory dynamics. We will build on this momentum by deepening our specialist propositions, sharpening underwriting capability and investing in technology, with clearer alignment across products, distribution and origination. We will continue to scale our structured real estate proposition, supporting increasingly complex and higher-value financing requirements while maintaining a disciplined approach to risk. Continued investment in proprietary technology and operational efficiency will sharpen the speed, consistency and quality of service across the lending journey, supporting sustainable growth through the remainder of the year. 1 Forecast reduction in underwriting and portfolio review times based on internal assessment of potential AI benefits.
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Shawbrook Group plc | Interim Financial Report 2026 17 Business review Retail: Retail Mortgage Brands Our Retail Mortgage Brands, The Mortgage Lender (TML) and Bluestone Mortgages Limited (BML), provide owner- occupied and buy-to-let mortgages to individuals and property professionals across the UK, distributed through a large and established network of intermediaries. Our proposition complements our broader Real Estate offering and enables us to serve a wide range of customers, including those with complex income and credit profiles. During H1 2026, we continued to execute with discipline, launching a direct-to-customer retention proposition across our Retail Mortgage Brands while continuing to invest in the technology and distribution capabilities that support our competitive position. H1 2026 Retail Mortgage Brand achievements • Integrated our Retail Mortgage Brands and Real Estate distribution and proposition teams under a single leadership structure, improving efficiency, strengthening collaboration and delivering a unified go- to-market strategy across our combined offering; • Launched a direct-to-customer Product Transfer proposition, representing the next step in our customer retention strategy and strengthening our ability to further support customers through their mortgage journey; • Launched a Product Transfer portal supporting customers approaching the end of their fixed rate; and • Launched our new TML website in March 2026, improving the broker experience through a more intuitive user-friendly digital experience. Looking ahead Looking ahead to the second half of 2026, the specialist mortgage market is expected to remain competitive, with affordability, intermediary confidence and pricing continuing to shape market dynamics. At the same time, customers and intermediaries increasingly expect faster, simpler and more digitally enabled journeys, making service quality and operational efficiency key sources of differentiation. Against this backdrop, our opportunity is to strengthen our position across Retail Mortgage Brands through disciplined pricing, strong intermediary relationships and continued investment in our customer proposition. Enhanced data-led engagement, direct servicing capabilities and technology investment will support stronger retention, improved efficiency and better customer outcomes. Our OTD programme remains an important lever for optimising capital and returns and will continue to be used selectively, reflecting current margin dynamics on new front-book buy-to-let business and the wider market backdrop.
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Shawbrook Group plc | Interim Financial Report 2026 18 Business review Retail: Consumer Finance Our Consumer Finance proposition provides specialist finance within the high-end vehicle market through our JBR brand, serving customers who are typically high-net- worth individuals, including entrepreneurs. Our proposition is underpinned by market insight and data- driven underwriting, delivered through a scalable distribution model built on established partnerships with dealers, brokers, and other trusted introducers, enabling us to provide tailored finance solutions across the premium motor finance sector. In H1 2026, we continued to reposition our Consumer Finance portfolio towards higher risk-adjusted returns, following the deliberate exit from unsecured personal lending in February 2026 and the termination of the forward flow agreement with Blue Motor Finance in January 2026. The residual portfolio has been transferred to held for sale and we are concentrating capital in JBR's specialist proposition. In JBR we continued to deliver a run of consecutive record originations, reflecting sustained demand for specialist finance in the premium motor finance market and the continued strength of our relationships with our distribution network. H1 2026 Consumer Finance achievements • Enhanced JBR's vehicle valuation methodology by introducing external expert data to improve the accuracy and robustness of residual value assessments; • Expanded our distribution network through the successful onboarding of a major national car dealer, strengthening our reach within the premium vehicle market; and • Strengthened the JBR offering with the launch of a large loan proposition for collectible and investment- grade vehicles, broadening our offering for ultra-high- net-worth customers. Looking ahead We expect demand to remain resilient across the premium and high-value motor finance segment, supported by the strength of the JBR brand and our established position in the specialist market. We will continue to deepen our reach by expanding our distribution network, strengthening relationships with key introducers and further developing our large loan proposition to meet the evolving needs of ultra-high- net-worth customers. Alongside this, we will continue to invest in technology, data and underwriting capabilities, including the introduction of automated decisioning, to enhance the customer and intermediary experience, improve operational efficiency and support scalable, sustainable growth.
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Shawbrook Group plc | Interim Financial Report 2026 19 Business review Retail: Savings Our savings proposition is built on a diverse product range, spanning ISAs, easy access, notice and fixed-term accounts, targeting both personal and business customers. The majority of balances are raised directly through our digital savings platform, complemented by an established partnership network that helps extend our reach. Together, wide distribution, a broad product set, established brands and strong digital customer journeys give us a diversified funding base that we can flex as markets evolve. During H1 2026, as competition intensified in the savings market, our approach helped protect margins while growing our funding base. We continued to invest in our digital capabilities, focusing on self-service and data- driven releases to respond to customer needs and began exploring how AI can sharpen our ways of working, laying the foundations for continued efficient growth. H1 2026 Savings achievements • Expanded digital self-service, contributing to a 35%1 year-on-year reduction in savings customer contacts as more customers complete everyday servicing quickly and conveniently online; • Deepened our partnership network, launching Easy Access propositions across three partners with our Whiteaway Laidlaw brand, raising more than £2 billion since launch, and reinforcing partnerships as a core pillar of funding diversification; • Digitised self-service tax certificates, with 97%2 now generated and issued digitally, giving customers faster access to important documents when needed; • Strengthened the resilience of customer communications by introducing a cloud-based backup channel for SMS messaging, ensuring customers continue to receive important updates without interruption; • AI-powered messaging now handles more routine customer enquiries, reducing manual processing by 18%3 across inbound messages annually, freeing up colleagues to focus on the more sophisticated customer needs; and • AI call summarisation and automated wrap-up notes reduced post-call administration by c.20%4, giving colleagues more time to support customers. Looking ahead Macroeconomic uncertainty continues to drive swap rate volatility, keeping the easy access market highly competitive amid record product availability. This is shifting customer behaviour towards fixed rates, as savers prioritise security over flexibility. The implications of ISA reform are also likely to influence how customers split their deposits, sharpening competition from the investment market as more cash looks for a tax-efficient home. The growing importance of aggregator platforms reflects increasing demand for broad financial marketplaces bringing together products from multiple providers. Our partnership strategy is to broaden the reach of our savings proposition through these established ecosystems, participating in this structural shift while maintaining disciplined margins. Our opportunity is to respond to this shift in customer behaviour through continued investment in our direct customer proposition and partnership network. This means expanding our digital capabilities and delivering the security, convenience and immediacy customers increasingly expect, while managing margin through the range of levers available to us, across distribution, product and digital. 1 35% reduction in total customer contact (via calls and SMS) when comparing H1 2025 to H1 2026. 2 97% of total tax certificates generated digitally as at June 2026. 3 18% reduction in manual handling time when comparing Q1 2026 to May 2026. 4 20% reduction in average call wrap-up time when comparing Q1 2026 to June 2026.
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Shawbrook Group plc | Interim Financial Report 2026 20 Risk Report 21 Approach to risk management 22 Top and emerging risks 24 Principal risks
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Shawbrook Group plc | Interim Financial Report 2026 21 The Interim Risk Report provides information about Shawbrook Group plc and its subsidiaries (together, the ‘Group’). The Interim Risk Report is a condensed report that is designed to provide an update on significant changes and developments since the last annual report. Accordingly, it should be read in conjunction with the Risk Report in the Group’s 2025 Annual Report and Accounts, which is available on the website at: www.shawbrook.co.uk/investors Approach to risk management The Group seeks to manage the risks inherent within its business activities and operations through close and disciplined risk management. This aims to quantify the risks taken, manage and mitigate them as far as possible and price for them to produce an appropriate commercial return through the cycle. The Group’s risk management approach is continuously evolving to reflect changes in its business model, product range, customer engagement preferences, and external factors such as ongoing challenges resulting from elevated interest rates affecting refinance risk and the impact of inflation on cost of living and affordability. The Group made a number of enhancements to its approach to risk management framework during the first half of 2026 including (and not limited to): • The Group completed the sale of retained loan notes from a previous TML Buy to Let securitisation of £0.5 billion in March 2026 and completed its largest securitisation, to date, of TML mortgages with a carrying amount of £0.8 billion in May 2026. • In May 2026, the Group issued a new £250 million AT1 instrument with transaction costs of £2.3 million recognised directly in equity. The issuance was completed in conjunction with a repurchase of £104.9 million of its existing AT1 instrument pursuant to a tender offer. • On 20 January 2026 the PRA issued final rules on the implementation of the Basel 3.1 capital reforms in the UK and confirmed that they will be implemented on 1 January 2027. The Group’s Basel 3.1 programme is on track to implement the requirements ahead of time to support an attestation of the risk weighted assets prior to 1 January 2027. The Group submitted the information request to the PRA in support of the ‘out of cycle’ C-SREP before the regulatory deadline of 31 March 2026 which is expected to support the setting of a Basel 3.1 Total Capital Requirement (TCR) including any SME lending adjustment. • Sustainability remains a key priority for the Group. The Board approved the Group’s plan to meet the updated supervisory expectations on approaches to managing climate related risks. The Chairman has expanded his role as sponsor of sustainability to include climate risk with climate risk added as a standing agenda at Risk Committee. In addition to the CRO, the Group has appointed additional SMFs in the first line to promote further embedding of climate risk within the lending business. • Provision 29 of the 2024 UK Corporate Governance code applied from 1 January 2026 which means that the Board will be required to provide its first declaration on the effectiveness of material internal controls for accounting periods from that date. The Group is leveraging its integrated governance, risk management and controls system to meet the requirements with regular updates to the Audit Committee. • The Group has also continued to embed new and updated processes to reflect the listed nature of the Group including updates to sustainability. • The Group has integrated ThinCats into the SME lending division harmonising policies and has implemented an investment committee to ensure the consistent application of credit stewardship whilst recognising the important differences in customer segment. The integration of Playter has also made progress and during the reporting period has become the distribution business for unsecured lending to SMEs. • The Group continued to evolve its cyber security through the implementation of additional functionality and testing of its cyber resilience. • Artificial Intelligence is evolving very quickly and has the potential to enhance customer outcomes, operational efficiency and decision making while ensuring that risks are appropriately managed. The Group has updated its risk appetite statement to reflect the risks arising from AI and updated its acceptable use policy to provide additional guard rails to promote the safe embedding of the technology and implemented a dedicated AI Model Risk Committee to ensure that the broader risks are proportionately managed.
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Shawbrook Group plc | Interim Financial Report 2026 22 Top and emerging risks The Group’s top and emerging risks are identified through the process outlined in the Risk Management Framework (RMF) and are considered regularly by the risk oversight committees, Executive Risk Committee (ExRC) and subsequently by the Board Risk Committee. • Top risks are those risks that could cause the delivery of the Group’s strategy, results of operations, financial condition and/or prospects to differ materially from expectations. • Emerging risks are those that have unknown components, the impact of which could crystallise over a longer period and could include certain other factors beyond the Group’s control, including escalation of terrorism or global conflicts, natural disasters, epidemic outbreaks and similar events. As at 30 June 2026, the Group has identified nine top risks and one emerging risk. The nine themes identified as top risks are as follows: • Economic and competitive environment • Credit impairment • Geopolitical risk • Intermediary, outsourcing, and operational resilience • Technology, information, and cyber security risk • Pace and scale of regulatory change • Pace, scale of change and people risk • Financial crime • Climate risk The emerging risk relates to the rapidly evolving nature of Artificial Intelligence (AI). Full details of each top risk, including how they could impact the Group’s strategy or business model and how they are managed, are set out in the Group’s 2025 Annual Report and Accounts starting on page 117. Updates regarding each top risk are provided below: Economic and competitive environment The UK economy stabilised after the disruption of the spring, although momentum is weak. GDP grew 0.7% in May 2026 following growth of 0.8% in the three months to April 2026 reflecting a reduction in services output. CPI inflation held at 2.8% in May 2026 which was a better out turn than expected but the energy price cap will increase by 15% in July 2026 which will lift inflation in H2 2026. The unemployment rate fell to 4.9% in April 2026, driven by a decrease in those unemployed for up to 6 months with the headline rate of unemployment expected to increase in H2 2026. The near-term picture is one of subdued growth with a domestic inflation risk. GDP forecasts for 2026 have been revised up to 1%, noting the economy entered Q2 with more momentum than expected but a prolonged conflict in the Middle East and domestic political uncertainty may hold back consumption and investment. Inflation is expected to peak at 3.5% reflecting a 15% energy price cap increase in July. Bank rate is expected to remain at 3.75% for the rest of the year. Downside risks include an escalation of the situation in the Middle East, second-round inflation effects triggering rate hikes, and fiscal tightening at the Autumn Budget. Arrears risk could be heightened particularly for borrowers refinancing off lower fixed rates, but more customers have been assessed using a stressed rate. The Group is maintaining close oversight of credit risk including affordability, funding, and collateral risk with additional information presented to the Board Risk Committee. The Group does not have any direct exposure to the Middle East but has considered customers at risk of second order impacts arising from fuel costs, inflation, supply chain risks. These are reviewed at each Risk Committee. Credit impairment The evolving economic environment has the potential for elevated arrears and impairments. In the first half of 2026, the Group has taken the decision to cease unsecured personal lending and terminated the forward flow agreement with Blue Motor Finance in January 2026 with the residual portfolio transferred to held for sale. The Group continues to review its early warning indicators and has increasingly leveraged AI to transition to always on monitoring leveraging deeper insights from both structured and unstructured data to identify and prioritise potential problem loans. The Group has leveraged external insights to ensure that affordability remains appropriate and to ensure that there is sufficient capacity to manage any potential increase in arrears. The Group has centralised its collateral management teams to enhance its audit capability in SME lending. Geopolitical risk The geopolitical environment remains uncertain, with continued conflicts in Ukraine and the Middle East. In the UK, risks remain to the downside including inflation, growth, and the potential for political uncertainty and the potential for further tax changes. The Group operates predominantly in England, Wales, and Scotland and has no direct exposure to Russia, Ukraine or the Middle East. However, the Group is exposed to the second order impacts on supply chains and the impact of inflation on the real incomes of its customers. The Group continues to ensure all important business services are operationally resilient in the event of geopolitical uncertainty. Intermediary, outsourcing, and operational resilience In H1 2026, the Group established a dedicated Intermediary Oversight function, enhancing due diligence, financial crime screening and governance across all intermediary relationships. The function engages proactively with industry bodies, including the FLA and UK Finance, to stay ahead of emerging fraud risks and regulatory developments. The Group continues to mature its third-party risk management capability, with a particular focus on AI-related cyber threats and supply chain resilience. Closer integration of operational resilience and third-party risk data now enables faster, better-informed assessment of dependencies — including cloud providers — supporting more targeted response and recovery within impact tolerances and protecting customer outcomes. Scenario testing with material third parties has extended beyond severe-but- plausible conditions, with live incident management exercises conducted from operational teams through to Board level. The Group welcomes the recent Critical Third Party designations, which bring greater transparency to supply chain resilience, and remains on track to meet the FCA's operational incident and third-party reporting requirements (PS2/26) well ahead of the March 2027 deadline.
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Shawbrook Group plc | Interim Financial Report 2026 23 Technology, information, and cyber security risk The Group continues to take a holistic approach to information and cyber security risk management, with controls aligned to the 'Adaptive Security Architecture' and its six core functions of govern, identify, protect, detect, respond and recover, refreshed to align fully with the NIST 2.0 framework. During the period, the Bank of England, FCA and HM Treasury published a joint statement on the cyber resilience implications of frontier AI, highlighting the increasing speed, scale and sophistication of AI-enabled threats to the financial sector. The Group has established a structured programme of work in response, covering governance, vulnerability management, third-party and supply chain risk, and detection and response capability, to ensure its defensive posture keeps pace with this evolving threat landscape. The Group has continued to invest in the quality and resiliency of its technology, people and process controls, with particular focus applied to external review of its perimeter security, attack surface, and security tooling capability Pace and scale of regulatory change The pace of regulatory change in 2026 has continued unabated with key updates to certain disclosures to reflect the Group’s listing on the London Stock Exchange. The Group has also made progress on the implementation of Basel 3.1 before 1 January 2027. The Group has completed its ICAAP on a Basel 3.1 basis in support of the out of cycle C-SREP process and the Board has approved the climate risk plan to support compliance with the PRA’s updated expectations for the risk management of climate risks. The Group has also considered the implications of the PRA’s consultation on modernising the liquidity framework. Pace, scale of change and people risk The Group is now well established in its refreshed approach to employee listening, with shorter quarterly pulse surveys providing more regular insight into colleague sentiment. The June survey achieved an 82% participation rate and an overall engagement score of 74%, a reduction of 3 percentage points since March, against a backdrop of significant organisational change across the Group. Our strongest results continue to reflect colleagues' confidence in our approach to AI adoption and our strong risk culture, providing a solid foundation as we navigate change. The Group continues to strengthen leadership capability across the Bank, with an ongoing focus on equipping leaders to lead through change, sustain engagement and deliver high performance. The Group continues to advance its approach to AI adoption, with 957 colleagues now using company-approved AI licences. Our focus is now shifting from adoption to capability, building consistent AI proficiency aligned to role requirements, ensuring colleagues can use AI safely, confidently and effectively in their day-to-day work. The Executive Leadership Team continues to optimise the Group's organisational design, ensuring it remains aligned to the effective delivery of business objectives while supporting the Group's longer-term strategic direction. Financial crime The Group’s financial crime framework continued to evolve during H1 2026, with adoption of Shawbrook Group standards across newly acquired firms, Playter and ThinCats. H1 has also seen enhancements to operational oversight, supported by improved data and management information, which further strengthen visibility of key risk areas. The wider Shawbrook Group Financial Crime Framework has continued to benefit from the adoption of new technologies. The Group continues to monitor developments to the financial crime landscape through enhanced horizon scanning, while also enriching key framework activities such as risk assessments, governance, oversight and Group-wide financial crime training. The Group continues to actively monitor fraud risk, with enhanced monitoring of controls to address product-specific risk areas such as fictitious lending or double pledging of loans. Climate risk Climate risk remains a persistent, long-term risk for the Group, and we continue to focus our efforts to address it through continued investment in data and deployment of existing and new financial products. The extent to which climate change affects our policies, customers, markets, and products will largely depend on UK government policies on the transition to net zero and how other financial institutions embed climate risk into their business models. The Board has approved the Group’s plan to be compliant with the PRA’s new expectations on approaches to managing climate-related risks. Artificial Intelligence (AI) AI continues to present significant opportunities to improve operational efficiency, customer experience, risk management and innovation. However, its adoption also introduces new risks that require robust governance, oversight and controls. The Group remains committed to implementing AI responsibly, ensuring compliance with regulatory expectations while contributing business value. During the period the Group created an enterprise licence for two leading AI platforms through which to leverage AI capabilities and also introduced updated AI acceptable use guidelines for all colleagues.
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Shawbrook Group plc | Interim Financial Report 2026 24 Principal risks Principal risks refer to the key risks the Group is exposed to. Policies and associated standards are maintained to support principal risks and provide guidance on how to achieve strategic objectives whilst managing the risk within defined risk appetite limits. The following table provides a summary of the Group’s principal risks and their definitions and signposts to where additional information can be found in the Group’s 2025 Annual Report and Accounts: Principal risk Definition Cross reference to the Group’s 2025 Annual Report and Accounts Credit risk The risk that a borrowing client or treasury counterparty fails to repay some, or all, of the capital or interest advanced to them, due to lack of willingness to pay and/or lack of ability to pay. This can include credit risks that materialise during the life of the asset such as refinance risk or elevate due to deteriorating security/collateral value. Credit risk can be further divided into customer credit risk (from core lending activity) and treasury credit risk (from treasury activity). Credit risk also includes credit concentration risk, which is the risk of exposure to particular groups of customers, sectors or geographies that, uncontrolled, may lead to additional losses that the Shareholder or the market may not expect. See pages 130 - 159 Market, liquidity and capital risk Market risk: The risk of financial loss through unhedged or mismatched asset and liability positions that are sensitive to changes in interest rates or currencies. See pages 160 - 171 Liquidity risk: The risk that the Group is unable to meet its current and future financial obligations as they fall due and maintain stakeholder confidence or is only able to do so at excessive cost. Liquidity risk includes funding risk, which is the risk that the Group is unable to maintain diverse funding sources and manage retail funding risk that can arise from concentrations of higher risk deposits. Capital risk: The risk that the Group has insufficient quantity and quality of capital to absorb losses over the cycle, cover regulatory requirements and/or to support its own growth plans. Operational risk The risk of loss resulting from inadequate or failed internal processes, people, data and management information availability, system failures, or from external events. See page 172 Technology and cyber risk The risk of loss arising from disruption to a business service or process due to an IT asset or service becoming unavailable or due to malicious activity (including a cyber-attack). The risk to business objectives or future growth trajectory by failing to ensure that system requirements are aligned and fit for purpose. See page 173 Strategic risk The risk that the Group is unable to meet its objectives through the inappropriate selection or implementation of strategic plans. This includes the ability to ensure that the proposition, products and services remain relevant, the embedding of appropriate governance, change prioritisation, management of external partnerships and successful embedding of equality, diversity and inclusion (EDI). See page 174 Transformation risk The risk that the Group is unable to effectively deliver or implement business change and fails to appropriately manage change governance, prioritisation or oversight. See page 175 Conduct risk The risk that the Group’s behaviour will result in poor customer outcomes through the delivery of the Group’s products, propositions and services. See page 176 Compliance and regulatory risk The risk of regulatory enforcement and sanction, material financial loss, or loss of reputation the Group may suffer as a result of its failure to identify and comply with applicable laws, regulations, codes of conduct and standards of good practice. See page 177 Climate risk The risk of financial loss, or loss of reputation, as a result of the Group’s failure to successfully embed physical risk, transition risk, litigation risk and relevant industry standards. See page 178 Financial crime risk The risk that the Group’s processes may be used to commit financial crime. See page 179 Model risk The risk of financial loss due to the failure to appropriately design, implement, monitor, validate, and use of models for their intended purpose. See page 180 The following sections provide additional information and updates for the first half of 2026 for each principal risk.
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Shawbrook Group plc | Interim Financial Report 2026 25 Principal risks: Credit risk The focus on credit risk across the Group has continued to evolve, with increasing sophistication of analysis and monitoring of both new to bank and in-life management harnessing internal and external data combined with AI to progress towards always on monitoring. The following sections provide additional information and analysis regarding the key areas that are monitored in relation to credit risk. This includes information about the impairment of financial assets; exposure to credit risk; concentrations of credit risk and forbearance. Impairment of financial assets To reflect the potential losses that the Group might experience due to credit risk, the Group recognises impairment provisions on its financial assets in the financial statements. Impairments are calculated using a forward-looking expected credit loss (ECL) model. ECLs are an unbiased probability-weighted estimate of credit losses determined by evaluating a range of possible outcomes. The Group calculates ECLs and recognises a ‘loss allowance’ in the statement of financial position for its financial assets measured at amortised cost and at fair value through other comprehensive income (FVOCI) and for its loan commitments. The measurement and calculation of ECLs is detailed in the Group’s 2025 Annual Report and Accounts starting on page 130. During the first half of 2026, there have been no notable changes to the methodology applied in calculating ECLs and the Group continues to make judgemental adjustments to modelled ECLs to ensure the loss allowance recognised adequately reflects the expected outcome. The following sections provide additional information regarding the loss allowance recognised in the statement of financial position, details about judgemental adjustments applied to modelled ECLs and updates regarding the critical accounting judgements and estimates associated with the impairment of financial assets.
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Shawbrook Group plc | Interim Financial Report 2026 26 Principal risks: Credit risk Analysis of the loss allowance recognised The following tables provide a summary of the loss allowance recognised in the statement of financial position in relation to each financial asset class. Except where noted, the loss allowance is recognised as a deduction from the gross carrying amount of the asset. Modelled ECL £m Judgemental adjustments (See page 33) £m Total £m Of which: As at 30 June 2026 (Unaudited) Stage 1 £m Stage 2 £m Stage 3 £m POCI £m Cash and balances at central banks <0.1 – <0.1 <0.1 – – – Loans and advances to banks <0.1 – <0.1 <0.1 – – – Loans and advances to customers at amortised cost 225.9 2.1 228.0 62.2 36.6 124.8 4.4 Loans and advances to customers at FVOCI (recognised in FVOCI reserve) 9.7 1.6 11.3 4.1 2.7 4.5 – Investment securities at amortised cost <0.1 – <0.1 <0.1 – – – Loan commitments (recognised as a provision) 0.4 0.1 0.5 0.4 0.1 – – Total loss allowance recognised 236.0 3.8 239.8 66.7 39.4 129.3 4.4 Modelled ECL £m Judgemental adjustments (See page 33) £m Total £m Of which: As at 31 December 2025 (Audited) Stage 1 £m Stage 2 £m Stage 3 £m POCI £m Cash and balances at central banks <0.1 – <0.1 <0.1 – – – Loans and advances to banks <0.1 – <0.1 <0.1 – – – Loans and advances to customers at amortised cost 186.4 3.0 189.4 59.8 31.5 93.3 4.8 Loans and advances to customers at FVOCI (recognised in FVOCI reserve) 12.1 1.3 13.4 5.7 3.0 4.7 – Investment securities at amortised cost <0.1 – <0.1 <0.1 – – – Loan commitments (recognised as a provision) 0.6 – 0.6 0.5 0.1 – – Total loss allowance recognised 199.1 4.3 203.4 66.0 34.6 98.0 4.8
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Shawbrook Group plc | Interim Financial Report 2026 27 Principal risks: Credit risk For loans and advances to customers at amortised cost and loans and advances to customers at fair value through other comprehensive income (FVOCI), additional analysis of the loss allowance recognised is provided starting on page 28 and 31, respectively. For cash and balances at central banks, loans and advances to banks and investment securities, the loss allowance is immaterial, totalling less than £0.1 million in both reported periods. Accordingly, no additional analysis is provided. The loss allowance on loan commitments is recognised as a provision in the statement of financial position (see Note 21). The change in the loss allowance on loan commitments for the reported period is recognised in the statement of the profit and loss within impairment losses on financial assets (see Note 12). Loans and advances to customers at amortised cost throughout the report include balances transferred to assets held for sale, comprising a gross carrying amount of £284.6 million and a loss allowance (ECL) of £7.7 million, giving a net carrying amount of £276.9 million. The stage-wise breakdown is: • Gross carrying amount: Stage 1 £278.8 million; Stage 2 £5.5 million; Stage 3 £0.3 million; Total £284.6 million. • Loss allowance: Stage 1 £5.6 million; Stage 2 £2.0 million; Stage 3 £0.1 million; Total £7.7 million. For more information, refer to Note 20. The following tables provide a summary of the loss allowance recognised in the statement of financial position in relation to loans and advances to customers. Total loans and advances to customers Stage 3 loans increased from £561.1 million at 31 December 2025 to £659.0 million at 30 June 2026. The increase is largely attributable to SME lending, which includes certain development finance vintage loans that we reported in FY 2025. As at 30 June 2026, this portfolio had a gross carrying amount of £147.6 million, with ECL coverage increasing to 34.9% (31 December 2025: 25.9%). Commercial Retail As at 30 June 2026 Real Estate SME Consumer Finance Retail Mortgage Brands Total (Unaudited) £m £m £m £m £m Stage 1 7,379.8 3,955.5 931.9 3,461.2 15,728.4 Stage 2 406.2 517.9 77.0 358.3 1,359.4 Stage 3 209.1 266.4 14.9 168.6 659.0 POCI 14.2 35.4 0.8 4.8 55.2 Gross carrying amount 8,009.3 4,775.2 1,024.6 3,992.9 17,802.0 Stage 1 (12.5) (35.3) (14.3) (4.6) (66.7) Stage 2 (7.2) (21.2) (7.9) (3.1) (39.4) Stage 3 (39.5) (76.0) (6.5) (7.3) (129.3) POCI (4.4) 0.4 (0.2) (0.2) (4.4) Loss allowance (63.6) (132.1) (28.9) (15.2) (239.8) Loss allowance coverage Stage 1 0.2% 0.9% 1.5% 0.1% 0.4% Stage 2 1.8% 4.1% 10.3% 0.9% 2.9% Stage 3 18.9% 28.5% 43.6% 4.3% 19.6% POCI 31.0% (1.1%) 25.0% 4.2% 8.0% Total loss allowance coverage 0.8% 2.8% 2.8% 0.4% 1.3% Commercial Retail As at 31 December 2025 Real Estate SME Consumer Finance Retail Mortgage Brands Total (Audited) £m £m £m £m £m Stage 1 7,080.4 3,797.5 963.2 4,036.7 15,877.8 Stage 2 380.6 421.6 75.7 504.1 1,382.0 Stage 3 202.3 167.2 14.8 176.8 561.1 POCI 13.9 20.4 1.3 4.7 40.3 Gross carrying amount 7,677.2 4,406.7 1,055.0 4,722.3 17,861.2 Stage 1 (11.8) (31.2) (16.4) (6.6) (66.0) Stage 2 (4.3) (17.3) (8.9) (4.1) (34.6) Stage 3 (34.1) (49.4) (6.7) (7.8) (98.0) POCI (4.2) (0.1) (0.4) (0.1) (4.8) Loss allowance (54.4) (98.0) (32.4) (18.6) (203.4) Loss allowance coverage Stage 1 0.2% 0.8% 1.7% 0.2% 0.4% Stage 2 1.1% 4.1% 11.8% 0.8% 2.5% Stage 3 16.9% 29.5% 45.3% 4.4% 17.5% POCI 30.2% 0.5% 30.8% 2.1% 11.9% Total loss allowance coverage 0.7% 2.2% 3.1% 0.4% 1.1%
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Shawbrook Group plc | Interim Financial Report 2026 28 Principal risks: Credit risk Additional analysis of loans and advances to customers at amortised cost For loans and advances to customers at amortised cost, the loss allowance is £228.0 million (31 December 2025: £189.4 million). The loss allowance is recognised as a deduction from the gross carrying amount of the asset (see Note 16). The following tables provide an analysis of loans and advances to customers at amortised cost by lending segment and the period-end stage classification. Commercial Retail As at 30 June 2026 Real Estate SME Consumer Finance Retail Mortgage Brands Total (Unaudited) £m £m £m £m £m Stage 1 7,379.8 3,955.5 931.9 357.8 12,625.0 Stage 2 406.2 517.9 77.0 123.7 1,124.8 Stage 3 209.1 266.4 14.9 84.2 574.6 POCI 14.2 35.4 0.8 4.8 55.2 Gross carrying amount 8,009.3 4,775.2 1,024.6 570.5 14,379.6 Stage 1 (12.4) (35.0) (14.3) (0.5) (62.2) Stage 2 (7.2) (21.1) (7.9) (0.4) (36.6) Stage 3 (39.5) (76.0) (6.5) (2.8) (124.8) POCI1 (4.4) 0.4 (0.2) (0.2) (4.4) Loss allowance (63.5) (131.7) (28.9) (3.9) (228.0) Carrying amount 7,945.8 4,643.5 995.7 566.6 14,151.6 Loss allowance coverage Stage 1 0.2% 0.9% 1.5% 0.1% 0.5% Stage 2 1.8% 4.1% 10.3% 0.3% 3.3% Stage 3 18.9% 28.5% 43.6% 3.3% 21.7% POCI 31.0% (1.1%) 25.0% 4.2% 8.0% Total loss allowance coverage 0.8% 2.8% 2.8% 0.7% 1.6% Commercial Retail As at 31 December 2025 Real Estate SME Consumer Finance Retail Mortgage Brands Total (Audited) £m £m £m £m £m Stage 1 7,080.4 3,797.5 963.2 394.4 12,235.5 Stage 2 380.6 421.6 75.7 186.8 1,064.7 Stage 3 202.3 167.2 14.8 90.4 474.7 POCI 13.9 20.4 1.3 4.7 40.3 Gross carrying amount 7,677.2 4,406.7 1,055.0 676.3 13,815.2 Stage 1 (11.7) (31.0) (16.4) (0.7) (59.8) Stage 2 (4.3) (17.2) (8.9) (1.1) (31.5) Stage 3 (34.1) (49.4) (6.7) (3.1) (93.3) POCI (4.2) (0.1) (0.4) (0.1) (4.8) Loss allowance (54.3) (97.7) (32.4) (5.0) (189.4) Carrying amount 7,622.9 4,309.0 1,022.6 671.3 13,625.8 Loss allowance coverage Stage 1 0.2% 0.8% 1.7% 0.2% 0.5% Stage 2 1.1% 4.1% 11.8% 0.6% 3.0% Stage 3 16.9% 29.5% 45.3% 3.4% 19.7% POCI 30.2% 0.5% 30.8% 2.1% 11.9% Total loss allowance coverage 0.7% 2.2% 3.1% 0.7% 1.4% 1 The change in lifetime ECL for Thincats POCI loans has moved favourably since acquisition. The current ECL has reduced from the day 1 ECL resulting in a positive incremental change post-acquisition.
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Shawbrook Group plc | Interim Financial Report 2026 29 Principal risks: Credit risk The following table provides an analysis of loans and advances to customers at amortised cost by agreement type and the period-end stage classification. As at 30 June 2026 (Unaudited) Loan receivables £m Finance lease receivables £m Instalment credit receivables £m Total £m Stage 1 11,767.8 22.6 834.6 12,625.0 Stage 2 1,111.5 0.2 13.1 1,124.8 Stage 3 544.5 0.5 29.6 574.6 POCI 55.2 – – 55.2 Gross carrying amount 13,479.0 23.3 877.3 14,379.6 Stage 1 (57.6) (0.1) (4.5) (62.2) Stage 2 (35.8) – (0.8) (36.6) Stage 3 (115.3) (0.4) (9.1) (124.8) POCI (4.4) – – (4.4) Loss allowance (213.1) (0.5) (14.4) (228.0) Carrying amount 13,265.9 22.8 862.9 14,151.6 Loss allowance coverage Stage 1 0.5% 0.4% 0.5% 0.5% Stage 2 3.2% – 6.1% 3.3% Stage 3 21.2% 80.0% 30.7% 21.7% POCI 8.0% – – 8.0% Total loss allowance coverage 1.6% 2.1% 1.6% 1.6% As at 31 December 2025 (Audited) Loan receivables £m Finance lease receivables £m Instalment credit receivables £m Total £m Stage 1 11,423.8 20.8 790.9 12,235.5 Stage 2 1,035.8 0.9 28.0 1,064.7 Stage 3 453.6 0.5 20.6 474.7 POCI 40.3 – – 40.3 Gross carrying amount 12,953.5 22.2 839.5 13,815.2 Stage 1 (55.6) (0.1) (4.1) (59.8) Stage 2 (30.7) (0.1) (0.7) (31.5) Stage 3 (87.7) (0.4) (5.2) (93.3) POCI (4.8) – – (4.8) Loss allowance (178.8) (0.6) (10.0) (189.4) Carrying amount 12,774.7 21.6 829.5 13,625.8 Loss allowance coverage Stage 1 0.5% 0.5% 0.5% 0.5% Stage 2 3.0% 11.1% 2.5% 3.0% Stage 3 19.3% 80.0% 25.2% 19.7% POCI 11.9% – – 11.9% Total loss allowance coverage 1.4% 2.7% 1.2% 1.4%
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Shawbrook Group plc | Interim Financial Report 2026 30 Principal risks: Credit risk The following table provides an analysis of movements in the loss allowance associated with loans and advances to customers at amortised cost during the six months ended 30 June 2026. The table is compiled by aggregating the six individual monthly movement tables for the loss allowance and carrying value of the loans. Transfers between stages are deemed to have taken place where the loan is open at the start of the month and remains open at the end of the month with the transition based on the opening loss allowance or carrying amount, with all other movements shown in the stage in which the asset is held at the end of the month. Where loans have been added (including originations, purchases and acquisitions through business combinations) or removed (including derecognitions and disposals) during the period, the six months movement is reflected on the relevant addition/disposal row. Six months ended 30 June 2026 (Unaudited) Stage 1 Stage 2 Stage 3 POCI Total £m £m £m £m £m As at 1 January 2026 59.8 31.5 93.3 4.8 189.4 ECL charge/(credit) for the period Transfer from Stage 1 (7.3) 6.6 0.7 – – Transfer from Stage 2 3.7 (10.9) 7.2 – – Transfer from Stage 3 0.2 1.6 (1.8) – – New financial assets originated or purchased 7.1 – – – 7.1 Financial assets derecognised (excluding disposals) (4.4) (5.8) (10.5) (0.1) (20.8) Changes in credit risk 3.1 13.6 35.9 (0.3) 52.3 Net ECL charge for the period 2.4 5.1 31.5 (0.4) 38.6 Total movement in loss allowance 2.4 5.1 31.5 (0.4) 38.6 As at 30 June 2026 62.2 36.6 124.8 4.4 228.0 Movements in the gross carrying amount of loans and advances to customers at amortised cost during the six months ended 30 June 2026 that contributed to the changes in the associated loss allowance during the period are shown in the following table. The table is compiled using the same methodology as described for the loss allowance movement table above. Six months ended 30 June 2026 (Unaudited) Stage 1 Stage 2 Stage 3 POCI Total £m £m £m £m £m As at 1 January 2026 12,235.5 1,064.7 474.7 40.3 13,815.2 Movements in gross carrying amounts Transfer from Stage 1 (700.3) 635.9 64.4 – – Transfer from Stage 2 257.4 (379.2) 121.8 – – Transfer from Stage 3 0.6 34.6 (35.2) – – New financial assets originated or purchased 2,222.1 – – 15.0 2,237.1 Financial assets derecognised (excluding disposals) (1,180.9) (102.0) (44.3) (0.1) (1,327.3) Financial assets derecognised on disposal (30.3) (2.2) (0.7) – (33.2) Net changes in lending1 (179.1) (127.0) (6.1) – (312.2) Total movement in gross carrying amount 389.5 60.1 99.9 14.9 564.4 As at 30 June 2026 12,625.0 1,124.8 574.6 55.2 14,379.6 1 Net changes in lending includes repayments, additional drawdowns and accrued interest.
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Shawbrook Group plc | Interim Financial Report 2026 31 Principal risks: Credit risk The net ECL charge for the period represents the amount recognised in the statement of profit and loss within impairment losses on financial assets at amortised cost (see Note 12). An analysis of this charge by lending segment is provided in the following table. Six months ended 30 June 2026 (Unaudited) £m Six months ended 30 June 2025 (Unaudited) £m Real Estate 9.2 4.4 SME 34.0 6.9 Consumer Finance (3.5) (2.7) Retail Mortgage Brands (1.1) 1.1 Net ECL charge for the period1 38.6 9.7 The net charge for the period includes c.£2.6 million of day-one expected credit loss recognised on the acquisition of the c.£160 million ThinCats portfolio in March 2026; this was an off-balance sheet loan book held by ThinCats that we acquired back on balance sheet. The cost of risk is 57bps and excluding this item, the cost of risk is 54bps. Stage 3 balances and impairments continue to be impacted by the pre-2022 development finance vintage loans described on page 27. Excluding the ThinCats portfolio we acquired back in March and the development finance vintage loans, the cost of risk was 37bps. Additional analysis of loans and advances to customers at FVOCI For loans and advances to customers at FVOCI, the loss allowance is £11.3 million (31 December 2025: £13.4 million). The loss allowance does not reduce the carrying amount of these assets, which remain at fair value. Instead, the loss allowance is recognised in the FVOCI reserve. The following table provides an analysis of loans and advances to customers at FVOCI by period-end stage classification. All FVOCI loans are attributable to the Retail Mortgage Brands lending segment and all represent mortgage loan receivables. 30 June 2026 (Unaudited) £m 31 December 2025 (Audited) £m Stage 1 3,103.4 3,642.3 Stage 2 234.6 317.3 Stage 3 84.4 86.4 POCI – – Carrying amount2 3,422.4 4,046.0 (4.1) Stage 1 (5.7) Stage 2 (2.7) (3.0) Stage 3 (4.5) (4.7) POCI – – Loss allowance (11.3) (13.4) Loss allowance coverage Stage 1 0.1% 0.2% Stage 2 1.2% 0.9% Stage 3 5.3% 5.4% POCI – – Total loss allowance coverage 0.3% 0.3% 1 The difference of £4.2 million between the net ECL charge of £9.7milion for 6 months period ended 30 June 2025 on loans measured at amortised cost, calculated as the difference between the opening and closing ECL balances for the reported period, and the ECL charge of £5.5 million recorded in Note 12 of the financial statements is attributable to a change in accounting treatment for suspended interest. 2 Excludes fair value adjustments for hedged risk recognised on loans and advances to customers.
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Shawbrook Group plc | Interim Financial Report 2026 32 Principal risks: Credit risk Loans originated from 1 January 2022 within Retail Mortgage Brands are considered under the Group’s originate to distribute strategy. The following table provides an analysis of movements during the year in the loss allowance associated with loans and advances to customers at FVOCI. The table is compiled in the same way as the amortised cost table and reflects the same change in methodology for the period. Six months ended 30 June 2026 (Unaudited) Stage 1 Stage 2 Stage 3 POCI Total £m £m £m £m £m As at 1 January 2026 5.7 3.0 4.7 – 13.4 ECL charge/(credit) for the period Transfer from Stage 1 (1.1) 1.1 0.0 – – Transfer from Stage 2 0.2 (1.2) 1.0 – – Transfer from Stage 3 0.1 0.9 (1.0) – – New financial assets originated or purchased 1.2 – – – 1.2 Financial assets derecognised (excluding disposals) (0.1) (0.1) (0.4) – (0.6) Changes in credit risk11 (0.1) (0.6) 0.7 – – Net ECL charge for the period 0.2 0.1 0.3 – 0.6 Other movements Financial assets derecognised on disposal (1.8) (0.4) (0.5) – (2.7) Total other movements (1.8) (0.4) (0.5) – (2.7) Total movement in loss allowance (1.6) (0.3) (0.2) – (2.1) As at 30 June 2026 4.1 2.7 4.5 – 11.3 The net ECL charge for the period represents the amount recognised in the statement of profit and loss in the ‘impairment losses on financial assets’ line (see Note 12) and in the statement of comprehensive income in the ‘change in loss allowance’ line. The net charge for the period reflects originations growth. The movement in the loss allowance reflects the sale of retained loan notes from a previous TML Buy to Let securitisation of £0.5 billion in March 2026 and a securitisation of TML mortgages with a carrying amount of £0.8 billion in May 2026. Movements in the carrying amount of loans and advances to customers at FVOCI during the six months ended 30 June 2026 (excluding fair value adjustments for hedged risk) are shown in the following table. The table is compiled using the same methodology as described for the loss allowance movement table above. Six months ended 30 June 2026 (Unaudited) Stage 1 Stage 2 Stage 3 POCI Total £m £m £m £m £m As at 1 January 2026 3,642.3 317.3 86.4 – 4,046.0 Movements in carrying amount Transfer from Stage 1 (200.9) 196.2 4.7 – – Transfer from Stage 2 48.1 (82.9) 34.8 – – Transfer from Stage 3 – 25.0 (25.0) – – New financial assets originated or purchased 837.1 – – – 837.1 Financial assets derecognised (excluding disposals) (106.6) (8.6) (5.7) – (120.9) Financial assets derecognised on disposal (1,264.4) (18.8) (11.5) – (1,294.7) Net changes in lending22 123.4 (194.7) 0.1 – (71.2) Change in fair value 24.4 1.1 0.6 – 26.1 Total movement in carrying amount (538.9) (82.7) (2.0) – (623.6) As at 30 June 2026 3,103.4 234.6 84.4 – 3,422.4 Assets held for sale The following table provides an analysis of the gross loans and loss allowance transferred to as held for sale by stage classification. These loans are separately presented in the Group’s statement of financial position as Assets held for sale. Six months ended 30 June 2026 (Unaudited) Stage 1 £m Stage 2 £m Stage 3 £m POCI £m Total £m Gross carrying amount 278.8 5.5 0.3 – 284.6 Loss allowance (5.6) (2.0) (0.1) – (7.7) Carrying amount 273.2 3.5 0.2 – 276.9 Total loss allowance coverage 2.0% 36.4% 33.3% – 2.7% For more information, refer to Note 20 in the Interim Financial Statements. 1 Changes in credit risk includes changes resulting from net changes in lending, including repayments, additional drawdowns and accrued interest, and changes resulting from adjustments to the models used in the calculation of ECLs, including model inputs and underlying assumptions. 2 Net changes in lending includes repayments, additional drawdowns and accrued interest.
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Shawbrook Group plc | Interim Financial Report 2026 33 Principal risks: Credit risk Judgemental adjustments to modelled ECLs Limitations in the models used to calculate ECLs may be identified through the ongoing performance monitoring and assessment and validation of the outputs from the models. Consequently, in certain circumstances, the Group makes judgemental adjustments to the modelled output to ensure the overall loss allowance recognised adequately reflects the risk in the portfolio. Judgemental adjustments take the form of post-model adjustments (PMAs) and overlays: • Post model adjustments: PMAs are calculated at a granular level through data driven analysis to take into account particular attributes of the portfolio that have not been adequately captured by the models. • Overlays: overlays are adjustments to the modelled outputs that do not meet the definition of a PMA. These include adjustments that are not calculated through modelled or data driven analysis. All judgemental adjustments are carefully monitored and are reviewed and approved at least every six months by the Group Impairment Committee, ExRC, and the Audit Committee, along with other key impairment judgements. Where appropriate, the attributes that drive the judgemental adjustments are incorporated into future model development. In the current environment, judgemental adjustments have the potential to significantly impact the loss allowance recognised and involve the application of significant management judgement. Judgemental adjustments to modelled ECLs are therefore considered to be an area of critical judgement. During the period the Group updated its PMA that reflects the risk of future interest rate rises at the maturity of the mortgage product. The PMA is assessed over a 36-month period in line with industry best practice. The overall impact is due to a reduction in the lifetime ECL for each loan due to updated impairment judgements. For Buy to Let the impact also reflects the benefit of future rental growth in the assessment. The PMA for segment risk has decreased by £0.5 million from £3.0 million to £2.5 million in the reporting period. Segment risk represents specific areas of the lending segments where the models would not expect to pick up the additional risk. The decrease in Retail Mortgage Brands of £0.1 million is to reflect the update of an LTV based Probability of Possession Given Default (PPGD). The decrease in SME of £0.5 million reflects the progress in implementing a new slotting model for Development finance which was calibrated to a higher PD and has now been implemented across 40% of customers. The PMA for uncollateralised lending is broadly stable. The increase in Consumer Finance PMA of £0.1 million reflects the removal of the test and learn PMA following the decision to cease unsecured lending in February 2026 and replaced it with a PMA to reflect the risk of voluntary termination as the JBR portfolio has seasoned with an increased mix of regulated motor finance contracts. The PMA for Retail Mortgage Brands has increased from £0.9 million to £1.1 million, reflecting an increase in economic sensitivity in the downside and severe downside scenarios for our new benchmarking group when compared to all-market UK Finance data, and reflecting book growth in Bluestone Mortgages. As at 30 June 2026 (Unaudited) As at 31 December 2025 (Audited) Commercial Retail Commercial Retail Real Estate £m SME £m Consumer Finance £m Retail Mortgage Brands £m Total £m Real Estate £m SME £m Consumer Finance £m Retail Mortgage Brands £m Total £m Fixed rate expiry 0.1 – – 0.1 0.2 0.2 – – 0.2 0.4 Segment risk – 1.2 0.8 0.5 2.5 – 1.7 0.7 0.6 3.0 Economic sensitivity – – – 1.1 1.1 – – – 0.9 0.9 Total judgemental adjustments to modelled ECLs 0.1 1.2 0.8 1.7 3.8 0.2 1.7 0.7 1.7 4.3
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Shawbrook Group plc | Interim Financial Report 2026 34 Principal risks: Credit risk Critical judgements relating to the impairment of financial assets The measurement of ECLs requires the Group to make a number of judgements. The judgements that are considered to have the most significant effect on the amounts in the financial statements are: • assessing whether there has been a significant increase in credit risk (SICR) (resulting in the financial asset being transferred to stage 2); • determining whether a financial asset is in default or is credit-impaired (resulting in the financial asset being transferred to stage 3); • estimates and judgements used in setting individual impairments in Stage 3 (resulting in an increase or decrease in the ECL using a discounted cashflow approach); and • determining whether a financial asset is ‘cured’ (and is therefore reclassified back to a lower stage). These judgements have an impact upon the stage the financial asset is allocated to and therefore whether a 12-month or lifetime ECL is recognised. The impairment of cash and balances at central banks, loans and advances to banks and investment securities is immaterial. As such, the area where these judgements have the most significant effect specifically relates to the impairment of loans and advances to customers. Additional details regarding information used and considerations applied when making these judgements are provided in the Group’s 2025 Annual Report and Accounts starting on page 144. There are no notable updates or changes to report for the current period. A further area of judgement that is considered to have a significant effect on amounts in the financial statements is the application of judgemental adjustments to modelled ECLs. Judgemental adjustments are applied to the modelled ECL amount when the Group judges that the modelled ECL does not adequately reflect the expected risk in the portfolio, or where there is a risk that the model cannot be expected to pick up based on previous experience. Details of judgemental adjustments to the modelled ECL are provided on page 33. Critical accounting estimates relating to the impairment of financial assets The calculation of ECLs requires the Group to make a number of assumptions and estimates. The key assumptions and estimates that, depending on a range of factors, could result in a material adjustment in the next financial period are unchanged to those identified in the Group’s 2025 Annual Report and Accounts (see page 144). Specifically, this relates to the forward-looking economic scenarios used in the calculation of ECLs and the probability weightings applied to these scenarios, along with the key inputs and assumptions used in the ECL models. Updates on these matters are set out below. Forward-looking information In both reported periods the Group has used four forward-looking economic scenarios: a base case (central view), an alternative upside scenario, an alternative moderate downside scenario and an alternative severe downside scenario. Scenarios are developed to reflect the Group’s expectations based on information available at the time (which may differ to actual outcomes). As at 30 June 2026, the economic scenarios used reflected the Group’s expectations based on the information available at the time. Assumptions embedded in the scenarios reflect that the economy grew by 0.7% in May 2026, following growth of 0.8% in the three months to April 2026. GDP growth is expected to be 1.0% by year- end. There are more signs of weakness in the labour market with the headline unemployment rate at 4.9%. Inflation is expected to increase to 3.5%, reflecting a 15% energy price cap increase in July. Bank Rate is expected to remain at 3.75% for the remainder of 2026.
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Shawbrook Group plc | Interim Financial Report 2026 35 Principal risks: Credit risk As at 30 June 2026 (Unaudited) 2026 2027 2028 2029 2030 Base 1.0% 1.3% 1.6% 1.6% 1.6% GDP – average change year- on-year Upside 1.3% 2.5% 2.4% 1.6% 1.6% Downside 0.4% (1.7%) 1.4% 2.4% 2.2% Severe downside 0.0% (3.2%) 0.0% 2.0% 2.5% Base 3.75% 3.25% 2.75% 2.75% 2.75% Bank Rate Upside 3.50% 2.75% 2.75% 2.75% 2.75% Downside 3.75% 2.00% 2.75% 2.75% 2.75% Severe downside 5.25% 5.25% 4.50% 3.25% 2.75% Base 5.6% 5.3% 5.1% 4.7% 4.4% UK Unemployment Upside 4.9% 4.3% 4.1% 4.1% 4.1% Downside 5.8% 6.2% 5.6% 5.3% 4.9% Severe downside 6.3% 8.0% 8.0% 7.1% 6.2% Base 3.5% 2.0% 2.0% 2.0% 2.0% Consumer Price Index – change year-on-year Upside 3.4% 1.8% 2.0% 2.0% 2.0% Downside 3.5% 0.7% 2.0% 2.0% 2.0% Severe downside 6.4% 5.5% 3.3% 2.5% 2.0% Base 0.0% 1.7% 2.8% 2.6% 2.4% UK Residential House Price Index – change year-on-year Upside 3.7% 5.1% 3.9% 4.0% 3.8% Downside (3.0%) (8.7%) 0.9% 3.2% 4.1% Severe downside (4.6%) (13.6%) (1.3%) 4.3% 4.5% As at 31 December 2025 (Audited) 2026 2027 2028 2029 2030 GDP – average change year- on-year Base Upside Downside Severe downside 1.2% 1.7% (1.0%) (2.0%) 1.5% 2.3% (0.8%) (2.3%) 1.6% 1.7% 2.2% 1.4% 1.6% 1.8% 2.3% 2.1% 1.6% 1.9% 2.2% 2.5% Bank Rate Base Upside Downside Severe downside 3.25% 3.25% 2.00% 5.75% 2.75% 2.75% 2.50% 5.25% 2.75% 2.75% 2.75% 4.25% 2.75% 2.75% 2.75% 3.00% 2.75% 2.75% 2.75% 2.75% UK Unemployment Base Upside Downside Severe downside 5.1% 4.1% 6.0% 6.9% 4.8% 4.1% 6.0% 8.0% 4.5% 4.1% 5.4% 7.7% 4.3% 4.1% 5.0% 6.8% 4.3% 4.1% 4.8% 5.8% Consumer Price Index – change year-on-year Base Upside Downside Severe downside 2.0% 1.4% 0.7% 6.3% 2.0% 2.0% 1.8% 3.7% 2.0% 2.0% 2.0% 3.2% 2.0% 2.0% 2.0% 2.7% 2.0% 2.0% 2.0% 2.0% UK Residential House Price Index – change year-on-year Base Upside Downside Severe downside 0.6% 4.9% (7.8%) (11.9%) 1.3% 4.0% (4.6%) (9.0%) 2.3% 3.9% 3.0% 3.6% 2.8% 3.7% 3.6% 4.4% 3.0% 3.9% 4.2% 4.3%
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Shawbrook Group plc | Interim Financial Report 2026 36 Principal risks: Credit risk The probability weightings applied to the above scenarios are another area of estimation uncertainty. They are generally set to ensure that there is an asymmetry in the ECL. The probability weightings applied to the four economic scenarios used are as follows: 30 June 2026 (Unaudited) 31 December 2025 (Audited) Base 50% 50% Upside 10% 10% Downside 30% 30% Severe downside 10% 10% In determining the probability weightings, the Group has regularly considered the nature and probability of the alternative downside scenarios. There is some downside risk to the forecasts but no strong evidence to support a change in weighting at 30 June 2026. The Group undertakes a review of its economic scenarios and the probability weightings applied at least quarterly and more frequently if required. The results of this review are recommended to the Audit Committee and the Board prior to any changes being implemented. The calculation of ECLs is sensitive to the assumptions made regarding the forward-looking scenarios used and the probability weightings applied. The Group performs sensitivity analysis to assess the impact on the loss allowance recognised on its loans and advances to customers. The following table shows the loss allowance as at 30 June 2026 for loans and advances to customers at amortised cost and FVOCI, and loan commitments based on the probability-weighted multiple economic scenarios, as recognised in the statement of financial position, and the impact on this loss allowance if each individual forward-looking scenario was weighted at 100%. In relation to the below analysis, in each of the scenarios, judgemental adjustments to modelled ECLs (PMAs, overlays, and individual impairments) are assumed to be constant and have been added back into each of the scenarios. As at 30 June 2026 (Unaudited) Probability- weighted loss allowance per statement of financial position £m Increase/(decrease) in loss allowance if scenario weighted at 100% Base £m Upside £m Downside £m Severe downside £m Real Estate 63.6 (9.5) (16.5) 9.8 34.4 SME 132.1 (1.8) (3.0) 1.5 7.3 Consumer Finance 28.9 (1.2) (2.4) 1.0 5.7 Retail Mortgage Brands 15.2 (3.7) (6.7) 4.6 11.1 Total 239.8 (16.2) (28.6) 16.9 58.5 As at 31 December 2025 (Audited) Probability- weighted loss allowance per statement of financial position £m Increase/(decrease) in loss allowance if scenario weighted at 100% Base £m Upside £m Downside £m Severe downside £m Real Estate 54.4 (6.7) (12.8) 8.3 21.3 SME 98.0 (1.7) (3.2) 1.5 7.0 Consumer Finance 32.4 (1.5) (2.9) 1.2 6.8 Retail Mortgage Brands 18.6 (3.4) (6.9) 4.3 10.6 Total 203.4 (13.3) (25.8) 15.3 45.7
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Shawbrook Group plc | Interim Financial Report 2026 37 Principal risks: Credit risk Model estimations ECL calculations are outputs of complex models with a number of underlying assumptions regarding the choice of variable inputs and their interdependencies. The Group considers the key assumptions impacting the ECL calculation to be within the probability of default (PD) and loss given default (LGD). Sensitivity analysis is performed by the Group to assess the impact of changes in these key assumptions on the loss allowance recognised on loans and advances to customers measured at amortised cost, FVOCI and loan commitments. A summary of the key assumptions and sensitivity analysis as at 30 June 2026 is provided in the following table. These represent reasonably possible outcomes within the next financial year for loans and advances to customers measured at amortised cost and FVOCI. Assumption Sensitivity analysis PD • A 10% increase in the PD for each customer would increase the total loss allowance on loans and advances to customers at FVOCI and amortised cost by £8.5 million (31 December 2025: £7.6 million). LGD: Real Estate and Retail Mortgage Brands • Property value • Forced sale discount • A 10% absolute reduction in property prices would increase the loss allowance on loans and advances to customers at amortised cost in the Real Estate segments by £15.1 million (31 December 2025: £11.4 million). • A 10% absolute reduction in property prices would increase the loss allowance on loans and advances to customers at FVOCI and amortised cost in Retail Mortgage Brands segment by £5.8 million (31 December 2025: £4.9 million). • A 5% absolute increase in the forced sale discount would increase the loss allowance on loans and advances to customers at amortised cost in the Real Estate segments by £9.7 million (31 December 2025: £7.6 million). • A 5% absolute increase in the forced sale discount would increase the loss allowance on loans and advances to customers at FVOCI and amortised cost in Retail Mortgage Brands segment by £3.6 million (31 December 2025: £3.2 million). LGD: SME • Absolute LGD value • A 5% absolute increase in the LGD applied would increase the total loss allowance on loans and advances to customers at amortised cost in SME by £9.7 million (31 December 2025: £7.7 million). LGD: Consumer Finance • Loss given charge-off • A 10% absolute increase in the loss given charge-off would increase the loss allowance on loans and advances to customers at amortised cost in Consumer Finance by £5.0 million (31 December 2025: £4.6 million). Exposure to credit risk The following table presents the Group’s maximum exposure to credit risk before taking into account any collateral held or other credit risk enhancements (unless such enhancements meet accounting offsetting requirements). For financial assets, the maximum exposure to credit risk is the carrying amount. For the purposes of this disclosure, fair value adjustments for hedged risk recognised on loans and advances to customers are not included. For loan commitments, the maximum exposure to credit risk is the full amount of the committed facilities. 30 June 2026 (Unaudited) £m 31 December 2025 (Audited) £m Cash and balances at central banks 2,264.4 1,924.5 Loans and advances to banks 282.1 246.8 Loans and advances to customers at amortised cost 14,151.6 13,625.8 Loans and advances to customers at FVOCI 3,422.4 4,046.0 Investment securities at amortised cost 2,146.8 1,979.9 Investment securities at FVOCI 455.0 178.1 Derivative financial assets 88.5 87.5 Loan commitments 1,419.7 1,479.2 Maximum exposure to credit risk 24,230.5 23,567.8
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Shawbrook Group plc | Interim Financial Report 2026 38 Principal risks: Credit risk Credit risk grading To assess exposure to credit risk, the Group has developed a credit risk grading system, as set out in the table below, which maps to a common master grading scale. This credit risk grading system is applied to the Group’s financial assets for which a loss allowance is recognised. The grading system consists of 25 grades on a master grading scale, reflecting varying degrees of risk and default. Responsibility for setting risk grades lies with the approval point for the risk or committee, as appropriate. Risk grades are subject to regular reviews by the Group’s risk function. The grading system remains unchanged compared to that used in the year ended 31 December 2025. Credit risk grading Master grading scale PD range Low risk 1-10 <=0.38% Medium risk 11-15 >0.38% to <= 1.76% High risk 16-25 >1.76% The following information provides an analysis of the Group’s exposures to credit risk by credit risk grade and period-end stage classification. The credit risk grade refers to the grades defined in the preceding table. The period-end stage classification refers to the IFRS 9 stage. It should be noted that the credit risk grading is a point-in-time assessment, whereas the period-end stage classification is determined based on the change in credit risk since initial recognition. As such, for non-credit impaired financial assets, there is not a direct relationship between the credit risk grade and stage classification. For cash and balances at central banks, loans and advances to banks and investment securities, all exposures are graded as low risk and are in Stage 1 in both reported years. For loans and advances to customers at amortised cost and FVOCI, analysis is provided in the following tables. Loans and advances to customers at amortised cost and at FVOCI 30 June 2026 (Unaudited) 31 December 2025 (Audited) Stage 1 £m Stage 2 £m Stage 3 £m POCI £m Total £m Stage 1 £m Stage 2 £m Stage 3 £m POCI £m Total £m Low risk 882.8 9.2 – – 892.0 1,410.8 359.0 0.3 – 1,770.1 Medium risk 9,191.1 177.2 – – 9,368.3 8,632.4 101.6 – – 8,734.0 High risk 5,091.6 1,169.7 643.4 55.2 6,959.9 5,053.0 909.7 558.5 40.3 6,561.5 Ungraded 562.9 3.3 15.6 – 581.8 781.6 11.7 2.3 – 795.6 Gross carrying amount 15,728.4 1,359.4 659.0 55.2 17,802.0 15,877.8 1,382.0 561.1 40.3 17,861.2 The disclosure in the current period reflects the application of credit grading for the ThinCats portfolio, the acquisition of a portfolio of SME loans in March 2026, and the securitisation of a portfolio of mortgages originated by TML.
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Shawbrook Group plc | Interim Financial Report 2026 39 Principal risks: Credit risk Concentrations of credit risk A concentration of credit risk exists when a number of counterparties are located in a geographical region or are engaged in similar activities and have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions. The Group monitors concentrations of credit risk and implements limits on concentrations where necessary in order to mitigate and control credit concentration risk. Additional analysis regarding concentrations of credit risk in relation to loans and advances to customers, the principal source of credit risk for the Group, is provided below. Amounts included in these tables present the combined carrying amount of the Group’s loans and advances to customers at amortised cost, and at FVOCI. Concentrations of credit risk by geographic location The following tables analyse the combined carrying amount of loans and advances to customers at amortised cost and FVOCI by lending segment and geographic location. The Group is predominantly a UK lender and continues to maintain a geographically diverse portfolio spanning across the UK. Outside of the UK, a small proportion of loans are attributable to counterparties domiciled in the Channel Islands, representing 0.3% of total loans (31 December 2025: 0.3% of total loans). As at 30 June 2026 (Unaudited) Commercial Retail Real Estate £m SME £m Consumer Finance £m Retail Mortgage Brands £m Total £m East Anglia 238.5 121.1 38.7 144.9 543.2 East Midlands 601.8 269.3 72.6 244.8 1,188.5 Greater London 2,217.2 1,400.7 160.5 994.8 4,773.2 Guernsey/Jersey/Isle of Man – 55.7 – – 55.7 North East 266.4 86.8 43.7 133.0 529.9 North West 1,023.2 714.1 126.6 470.2 2,334.1 Northern Ireland 1.4 16.7 1.6 – 19.7 Scotland 435.7 90.9 70.8 276.6 874.0 South East 1,440.3 748.0 193.1 800.8 3,182.2 South West 493.5 461.4 61.4 218.2 1,234.5 Wales 221.8 119.2 44.2 122.8 508.0 West Midlands 536.2 367.4 100.9 299.8 1,304.3 Yorkshire/Humberside 469.8 192.2 81.6 283.1 1,026.7 Carrying amount1 7,945.8 4,643.5 995.7 3,989.0 17,574.0 As at 31 December 2025 (Audited) Commercial Retail Total £m Real Estate £m SME £m Consumer Finance £m Retail Mortgage Brands £m East Anglia 231.6 125.7 42.8 166.7 566.8 East Midlands 584.1 257.8 70.5 303.2 1,215.6 Greater London 2,191.6 1,290.4 149.9 1,210.0 4,841.9 Guernsey/Jersey/Isle of Man – 53.7 – – 53.7 North East 245.9 62.4 47.3 143.4 499.0 North West 974.0 659.3 131.7 544.0 2,309.0 Northern Ireland 1.5 3.9 2.0 – 7.4 Scotland 412.4 84.3 76.2 307.5 880.4 South East 1,354.0 663.5 201.4 971.2 3,190.1 South West 474.2 492.8 66.1 261.7 1,294.8 Wales 192.1 108.7 47.4 140.2 488.4 West Midlands 513.1 294.2 103.4 356.0 1,266.7 Yorkshire/Humberside 448.4 212.3 83.9 313.4 1,058.0 Carrying amount1 7,622.9 4,309.0 1,022.6 4,717.3 17,671.8 1 Excludes fair value adjustments for hedged risk recognised on loans and advances to customers.
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Shawbrook Group plc | Interim Financial Report 2026 40 Principal risks: Credit risk Concentrations of credit risk by loan size The following tables present an analysis of the combined carrying amount of loans and advances to customers at amortised cost and at FVOCI by lending segment and loan size. The Group continues to manage concentration risk through product caps, restricting large exposures to higher credit graded customers, and through specific risk appetite limits on exposure to larger counterparties. Loans with a carrying amount exceeding £25.0 million represents 5.1% of total loans (31 December 2025: 3.8% of total loans), whilst 56.2% of total loans have a carrying amount of less than £1.0 million (31 December 2025: 59.4% of total loans). As at 30 June 2026 (Unaudited) Commercial Retail Total £m Real Estate £m SME £m Consumer Finance £m Retail Mortgage Brands £m 0 – £50k 81.0 40.7 615.2 55.9 792.8 £50k – £100k 270.3 58.1 149.6 430.2 908.2 £100k – £250k 1,111.4 146.1 169.8 1,805.5 3,232.8 £250k – £500k 1,683.9 135.7 25.5 1,293.1 3,138.2 £500k – £1.0 million 1,258.1 193.6 2.8 346.0 1,800.5 £1.0 million – £2.5 million 1,514.7 597.7 18.0 53.2 2,183.6 £2.5 million – £5.0 million 734.8 705.4 14.8 5.1 1,460.1 £5.0 million – £10.0 million 498.9 839.8 – – 1,338.7 £10.0 million – £25.0 million 594.1 1,228.0 – – 1,822.1 > £25.0 million 198.6 698.4 – – 897.0 Carrying amount1 7,945.8 4,643.5 995.7 3,989.0 17,574.0 As at 31 December 2025 (Audited) Commercial Retail Real Estate £m SME £m Consumer Finance £m Retail Mortgage Brands £m Total £m 0 – £50k 88.1 46.3 722.7 53.4 910.5 £50k – £100k 277.3 67.6 125.4 497.2 967.5 £100k – £250k 1,086.5 148.8 145.8 2,132.6 3,513.7 £250k – £500k 1,584.5 146.4 18.5 1,557.2 3,306.6 £500k – £1.0 million 1,166.0 238.2 4.9 404.7 1,813.8 £1.0 million – £2.5 million 1,491.1 584.0 5.3 66.8 2,147.2 £2.5 million – £5.0 million 707.0 719.7 – 5.4 1,432.1 £5.0 million – £10.0 million 491.9 718.3 – – 1,210.2 £10.0 million – £25.0 million 563.3 1,135.2 – – 1,698.5 > £25.0 million 167.2 504.5 – – 671.7 Carrying amount1 7,622.9 4,309.0 1,022.6 4,717.3 17,671.8 1 Excludes fair value adjustments for hedged risk recognised on loans and advances to customers.
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Shawbrook Group plc | Interim Financial Report 2026 41 Principal risks: Credit risk Concentrations of credit risk by industry The following tables present an analysis of the combined carrying amount of loans and advances to customers at amortised cost and at FVOCI by lending segment and industry. The industry segmentation of the Group’s loans and advances to customers remains focused on mortgages and real estate activities, which represents 68.3% of total loans (31 December 2025: 69.8% of total loans). As at 30 June 2026 (Unaudited) Commercial Retail Total £m Real Estate £m SME £m Consumer Finance £m Retail Mortgage Brands £m Agriculture, forestry and fishing 0.4 2.1 0.1 – 2.6 Manufacturing 6.1 306.2 4.3 – 316.6 Transport, storage and utilities 16.4 398.5 12.3 – 427.2 Construction 612.3 684.1 16.9 – 1,313.3 Wholesale and retail trade 23.5 294.8 23.4 – 341.7 Real estate activities 5,609.2 1,007.7 40.4 1,269.4 7,926.7 Financial and insurance activities 57.9 1,011.4 4.6 – 1,073.9 Services and other 122.1 938.7 25.2 1.0 1,087.0 Personal: Mortgages 1,361.9 – – 2,718.6 4,080.5 Other 136.0 – 868.5 – 1,004.5 Carrying amount1 7,945.8 4,643.5 995.7 3,989.0 17,574.0 As at 31 December 2025 (Audited) Commercial Retail Total £m Real Estate £m SME £m Consumer Finance £m Retail Mortgage Brands £m Agriculture, forestry and fishing 0.4 2.8 0.1 – 3.3 Manufacturing 7.1 276.6 4.2 – 287.9 Transport, storage and utilities 15.3 422.6 10.7 – 448.6 Construction 604.1 705.1 14.4 – 1,323.6 Wholesale and retail trade 20.3 261.4 16.2 – 297.9 Real estate activities 5,284.7 945.0 31.5 1,635.7 7,896.9 Financial and insurance activities 49.5 900.6 3.3 – 953.4 Services and other 127.0 794.7 16.3 1.8 939.8 Personal: Mortgages 1,357.3 – – 3,079.8 4,437.1 Other 157.2 0.2 925.9 – 1,083.3 Carrying amount1 7,622.9 4,309.0 1,022.6 4,717.3 17,671.8 1 Excludes fair value adjustments for hedged risk recognised on loans and advances to customers.
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Shawbrook Group plc | Interim Financial Report 2026 42 Principal risks: Credit risk Forbearance The Group maintains a forbearance policy for the servicing and management of customers who are in financial difficulty and require some form of concession to be granted, even if this concession entails a loss for the Group. The Group’s forbearance policy is outlined in the Group’s 2025 Annual report and Accounts starting on page 158 and is unchanged in the current period. The Group has a full suite of forbearance options available, and these have remained the same in the period to 30 June 2026. The following tables provide a summary of the Group’s forborne loans and advances to customers by lending segment and period-end stage classification. This includes loans measured at amortised cost and those measured at FVOCI. For FVOCI loans, the gross carrying amount column represents the carrying amount of these loans (i.e. including fair value adjustments). Gross amount of forborne loans Loss allowance on forborne loans As at 30 June 2026 (Unaudited) Number of loans Performing £m Non- performing £m Total £m Performing £m Non- performing £m Total £m Coverage % Real Estate Stage 2 102 10.4 – 10.4 (0.1) – (0.1) 1.0 Stage 3 308 – 30.8 30.8 – (3.2) (3.2) 10.4 Real Estate total 410 10.4 30.8 41.2 (0.1) (3.2) (3.3) 8.0 SME Stage 2 35 87.9 – 87.9 (2.4) – (2.4) 2.7 Stage 3 78 – 66.9 66.9 – (17.6) (17.6) 26.3 SME total 113 87.9 66.9 154.8 (2.4) (17.6) (20.0) 12.9 Consumer Finance Stage 2 458 3.3 – 3.3 (0.8) – (0.8) 24.2 Stage 3 467 – 2.1 2.1 – (1.6) (1.6) 76.2 Consumer Finance total 925 3.3 2.1 5.4 (0.8) (1.6) (2.4) 44.4 Retail Mortgage Brands Stage 2 219 37.7 – 37.7 (0.3) – (0.3) 0.8 Stage 3 443 – 85.8 85.8 – (3.1) (3.1) 3.6 Retail Mortgage Brands total 662 37.7 85.8 123.5 (0.3) (3.1) (3.4) 2.8 Total Stage 2 814 139.3 – 139.3 (3.6) – (3.6) 2.6 Stage 3 1,296 – 185.6 185.6 – (25.5) (25.5) 13.7 Total 2,110 139.3 185.6 324.9 (3.6) (25.5) (29.1) 9.0 Gross amount of forborne loans Loss allowance on forborne loans As at 31 December 2025 (Audited) Number of loans Performing £m Non- performing £m Total £m Performing £m Non- performing £m Total £m Coverage % Real Estate Stage 2 94 5.6 0.5 6.1 – – – – Stage 3 296 – 17.1 17.1 – (1.0) (1.0) 5.8 Real Estate total 390 5.6 17.6 23.2 – (1.0) (1.0) 4.3 SME Stage 2 17 85.4 – 85.4 (2.2) – (2.2) 2.6 Stage 3 86 – 65.9 65.9 – (12.4) (12.4) 18.8 SME total 103 85.4 65.9 151.3 (2.2) (12.4) (14.6) 9.6 Consumer Finance Stage 2 426 0.6 2.7 3.3 (0.1) (0.8) (0.9) 27.3 Stage 3 592 – 2.9 2.9 – (2.4) (2.4) 82.8 Consumer Finance total 1,018 0.6 5.6 6.2 (0.1) (3.2) (3.3) 53.2 Retail Mortgage Brands Stage 2 254 16.1 25.8 41.9 (0.1) (0.4) (0.5) 1.2 Stage 3 672 – 134.9 134.9 – (6.7) (6.7) 5.0 Retail Mortgage Brands total 926 16.1 160.7 176.8 (0.1) (7.1) (7.2) 4.1 Total Stage 2 791 107.7 29.0 136.7 (2.4) (1.2) (3.6) 2.6 Stage 3 1,646 – 220.8 220.8 – (22.5) (22.5) 10.2 Total 2,437 107.7 249.8 357.5 (2.4) (23.7) (26.1) 7.3
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Shawbrook Group plc | Interim Financial Report 2026 43 Principal risks: Market, liquidity and capital risk Market risk During the period, there have been no significant changes or developments in relation to market risk and its management. Liquidity risk The following section provides updates regarding key metrics that are used by the Group in assessing and monitoring liquidity risk. Metrics used in assessing and monitoring liquidity risk Certain metrics that are used by the Group in assessing and monitoring liquidity risk are summarised below. Liquidity buffer The Group maintains a liquidity buffer of high-quality liquid assets, as defined by the EBA’s mandates and adopted by the PRA. These assets can be monetised to meet stress requirements in line with internal stress testing and the requirements of the Delegated Regulation on the Liquidity Coverage Ratio (LCR). The composition of the Group’s liquidity buffer is as follows: (Unaudited) 30 June 2026 £m 31 December 2025 £m Cash and withdrawable central bank reserves (LCR level 1 assets) 2,234.9 1,880.4 Central government assets (LCR level 1 assets) – 48.2 Extremely high-quality covered bonds (LCR level 1 assets) 810.6 840.1 Asset backed securities (LCR level 2B assets) 201.9 207.0 Total liquidity buffer 3,247.4 2,975.7 Liquidity coverage ratio (LCR) The LCR is a regulatory metric that measures the stock of High-Quality Liquid Assets (HQLA) held against net stressed liquidity outflows over a 30 calendar-day stress period. The Group calculates the LCR in accordance with the PRA Rulebook. The increase in the liquidity buffer was primarily driven by higher holdings of Level 1 HQLA, notably withdrawable central bank reserves. In addition, the Group maintained a substantial pool of pre-positioned collateral at the Bank of England, providing readily available contingent liquidity and supporting operational resilience. (Unaudited) 30 June 2026 £m 31 December 2025 £m Liquidity buffer (£m) 3,247.4 2,975.7 Total net cash outflows (£m) 1,958.0 2,022.0 Liquidity coverage ratio (%) 165.9 147.2 Net stable funding ratio (NSFR) The NSFR is a regulatory metric that measures the amount of stable funding available compared to the amount of stable funding required. From 1 January 2022, as part of the revised Capital Requirements Regulation (CRR II), it became a binding requirement that the NSFR must remain above the minimum level of 100%. The Group’s NSFR remains above this required level, with a ratio of 126.8% as at 30 June 2026 (31 December 2025: 124.9%).
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Shawbrook Group plc | Interim Financial Report 2026 44 Principal risks: Market, liquidity and capital risk Capital risk Capital risk is the risk that the Group has insufficient quantity and quality of capital to cover regulatory requirements and/or to support its own growth plans. The Group’s approach to capital management is driven by strategic and organisational requirements, whilst also taking into account the regulatory and commercial environments in which it operates. Exposure to capital risk could arise due to a depletion of the Group’s capital resources as a result of the crystallisation of any of the risks to which it is exposed or an increase in minimum capital requirements. The following section provides relevant updates for the six months ended 30 June 2026. Managing capital risk Management of capital risk is described on page 167 of the Group’s 2025 Annual Report and Accounts. This sets out the Group’s methods and key objectives for managing capital risk and how the Group is supervised by its regulators. There have been no changes to note in the management of capital risk in the six months ended 30 June 2026. Regulatory requirements The Group applies the regulatory framework defined by the revised Capital Requirements Regulation (CRR II) and the Capital Requirements Directive (CRD V). Directive requirements are implemented in the UK by the PRA and supplemented through additional regulation under the PRA Rulebook. Minimum requirements set out by the regulatory framework are unchanged compared to 31 December 2025 and are summarised in the following table: Minimum capital requirements CET1 Total capital Pillar 1 4.50% 8.00% Pillar 2A 0.70% 1.24% Total Capital Requirement 5.20% 9.24% Regulatory capital buffers Capital conservation buffer 2.50% 2.50% Countercyclical capital buffer 2.00% 2.00% Overall Capital Requirement 9.70% 13.74% Additional systemic buffers provided for by CRD V do not apply to the Group. The regulatory minimum for the UK leverage ratio also remains unchanged compared to 31 December 2025 at 3.25%. Whilst the Group is not required to comply with the PRA’s UK Leverage Ratio Framework until its retail deposits exceed the £75 billion threshold, the PRA has stated its expectation that all UK firms should manage their leverage risk so that the ratio does not ordinarily fall below 3.25%. Consequently, the Group treats 3.25% as its minimum requirement. The Group (including its regulated subsidiaries) maintains an adequate capital base and has complied with all externally imposed capital requirements. The Total Capital Requirement set by the PRA has been met at all times and capital adequacy and leverage ratios are well in excess of the minimum regulatory requirements. Regulatory developments The Group has made progress in the implementation of Basel 3.1 following publication of the final rules in January 2026 and remains on track for completion before implementation on 1 January 2027. During the reporting period the Group submitted the key information request in support of the SME lending adjustment as part of the ‘out-of-cycle’ CSREP exercise. The PRA published phase 1 of its review of Pillar 2 methodologies which will be included within the next ICAAP .
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Shawbrook Group plc | Interim Financial Report 2026 45 Principal risks: Market, liquidity and capital risk Capital risk disclosures Certain disclosures relating to the Group’s capital position are shown on the following pages. The disclosures present the consolidated capital position for the Group, as reported to the PRA. Regulatory capital Composition of the Group’s regulatory capital as at 30 June 2026 is as follows: 30 June 2026 (Unaudited) 31 December 2025 (Audited) £m £m Share capital 2.6 2.6 Share premium 134.7 134.7 Capital contribution reserve 19.9 19.9 Retained earnings 1,645.1 1,513.7 Intangible assets (148.9) (145.8) Deferred tax assets (20.4) (23.5) Accumulated Other Comprehensive Income (0.9) (0.5) Prudent valuation adjustment (4.0) (4.4) Securitisation position which would alternatively be subject to 1,250.0% risk weight (7.8) (6.9) Common Equity Tier 1 capital 1,620.3 1,489.8 Capital securities 267.8 123.1 Additional Tier 1 capital 267.8 123.1 Total Tier 1 capital 1,888.1 1,612.9 Subordinated debt liability110 164.0 163.8 Tier 2 capital 164.0 163.8 Total regulatory capital 2,052.1 1,776.7 1 For the purpose of regulatory capital calculations, capitalised interest and other accounting adjustments of £7.7 million are excluded (31 December 2025: £7.7 million).
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Shawbrook Group plc | Interim Financial Report 2026 46 Principal risks: Market, liquidity and capital risk The Group’s total regulatory capital reconciles to the Group’s total equity per the statement of financial position as follows: 30 June 2026 (Unaudited) £m 31 December 2025 (Audited) £m Total regulatory capital 2,052.1 1,776.7 Subordinated debt liability111 (164.0) (163.8) Intangible assets 148.9 145.8 Prudent valuation adjustment 4.0 4.4 Accumulated Other Comprehensive Income 0.9 0.5 Securitisation position which would alternatively be subject to 1,250.0% risk weight 7.8 6.9 Cash flow hedging reserve 6.7 4.7 Deferred tax deductible 20.4 23.5 Fair value through other comprehensive income reserve 22.8 43.8 Total equity 2,099.6 1,842.5 Movement in the Group’s total regulatory capital during the period is as follows: (Unaudited) 30 June 2026 £m Total regulatory capital as at 1 January 2026 1,776.7 Movement in Common Equity Tier 1 capital Increase/(decrease) in retained earnings: Profit for the period 146.2 Share-based payments 2.0 Coupon paid on capital securities (6.5) AT1 premium and release of capitalised costs on original instrument (10.3) Increase in intangible assets (3.1) Deferred Tax deduction 3.1 Accumulated Other Comprehensive Income (0.4) Decrease in prudent valuation adjustment 0.4 Increase in securitisation position which would alternatively be subject to 1,250.0% risk (0.9) Total movement in Common Equity Tier 1 capital 130.5 Movement in Additional Tier 1 capital Increase in capital securities 144.7 Total movement in Additional Tier 1 capital 144.7 Movement in Tier 2 capital Issue of subordinated debt – Redemption of subordinated debt – Other movements in subordinated debt 0.2 Total movement in Tier 2 capital 0.2 Total regulatory capital as at 30 June 2026 2,052.1 1 For the purpose of regulatory capital calculations, capitalised interest and other accounting adjustments of £7.7 million are excluded (31 December 2025: £7.7 million).
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Shawbrook Group plc | Interim Financial Report 2026 47 Principal risks: Market, liquidity and capital risk Key capital metrics (Unaudited) 30 June 2026 £m 31 December 2025 £m Risk-weighted assets (£m) 12,476.9 12,003.2 Common Equity Tier 1 capital ratio (%) 13.0 12.4 Total Tier 1 capital ratio (%) 15.1 13.4 Total capital ratio (%) 16.4 14.8 Leverage ratio (%) 8.7 7.8 Principal risks: Operational risk and resilience Please see the Intermediary, outsourcing and operational resilience Top Risk commentary on page 22 for details. Principal risks: Technology and cyber risk Please see the Technology, Information and Cyber Security Risk Top Risk commentary on page 23 for details. Principal risks: Strategic risk Please see the Strategic Risk commentary on page 174 of the 2025 Annual Report and Accounts for details. Principal risks: Transformation risk Please see the Transformation Risk commentary on page 175 of the 2025 Annual Report and Accounts for details Principal risks: Conduct risk The Board receives regular updates on conduct risk including updates to risk appetite. During the period the Board received the annual Consumer Duty report. The report highlighted the progress made during the period and the ongoing work to enhance management information. Principal risks: Compliance and regulatory risk Please see the Compliance and Regulatory Risk commentary on page 177 of the 2025 Annual Report and Accounts for details Principal risks: Climate risk The Group has completed its plan to address the updated supervisory requirements on the risk management of climate related risks and has participated in a number of external benchmarking studies to confirm that the plan is aligned with market. As part of the plan the Chairman has extended his responsibilities to Board sponsor of climate risk and an additional SMF has been agreed in the business to support the wider embedding of climate risk. Progress against the Group’s climate risk plan is a regular standing agenda at Board Risk Committee. During the period the Board received additional external training on the climate base case. Principal risks: Financial crime risk Please see the Financial Crime Top Risk commentary on page 23 for details. Principal risks: Model risk The Group has continued to embed the PRA thematic Feedback on accounting for IFRS9 and ECL and Climate Risk. This included an update to its stress testing approach for transition and physical risk within its ICAAP . During the period the Group completed a reverse stress test leading to additional developments in Board MI and risk appetite. The Group has continued to focus on the completeness of PMAs to ensure provision cover accurately reflects actual expectations. This included consideration of Voluntary Terminations within JBR and the further embedding of benchmarking data on the longer-term economic resilience of its lending portfolios. A key area of focus during the period has been on AI with a new AI model risk committee implemented to oversee the more complex implementations and enhancements to AI guard rails and policies to promote the safe implementation of the new technology. The Model Risk Committee also oversaw a comprehensive update to the governance arrangements and policies for the oversight of End User Computing controls.
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Shawbrook Group plc | Interim Financial Report 2026 48 Statement of Directors’ Responsibilities
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Shawbrook Group plc | Interim Financial Report 2026 49 Statement of Directors’ Responsibilities The Directors, whose names and functions are set out below, confirm that, to the best of their knowledge: • the condensed set of financial statements has been prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted for use in the UK; • the interim management report includes a fair review of the information required by: – DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the year; and – DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the Group during that period, and any changes in the related party transactions described in the last annual report that could do so. This responsibility statement was approved by the Board of Directors on 4 August 2026. By order of the Board. Andrew Nicholson Group Company Secretary Board of Directors John Callender, Chairman and Chair of Nomination and Governance Committee Marcelino Castrillo, Chief Executive Officer Dylan Minto, Chief Financial Officer Lan Tu, Senior Independent Director Andrew Didham, Independent Non-Executive Director and Chair of Audit Committee Michele Turmore, Independent Non-Executive Director and Chair of Remuneration Committee Janet Connor, Independent Non-Executive Director Derek Weir, Independent Non-Executive Director and Chair of Risk Committee Lindsey McMurray, Institutional Director Cedric Dubourdieu, Institutional Director
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Shawbrook Group plc | Interim Financial Report 2026 50 Independent Review Report
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Shawbrook Group plc | Interim Financial Report 2026 51 Independent Review Report to Shawbrook Group plc Conclusion We have been engaged by Shawbrook Group plc (“the Company”) to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2026, which comprises the condensed consolidated statement of profit and loss, condensed consolidated statement of comprehensive income, condensed consolidated statement of financial position, condensed consolidated statement of changes in equity, condensed consolidated statement of cash flows and the related explanatory notes. Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2026 is not prepared, in all material respects, in accordance with IAS 34 Interim Financial Reporting as adopted for use in the UK and the Disclosure Guidance and Transparency Rules (“the DTR”) of the UK’s Financial Conduct Authority (“the UK FCA”). Basis for conclusion We conducted our review in accordance with International Standard on Review Engagements (UK) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity (“ISRE (UK) 2410”) issued for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. We read the other information contained in the half-yearly financial report and consider whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusions relating to going concern Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for conclusion section of this report, nothing has come to our attention that causes us to believe that the directors have inappropriately adopted the going concern basis of accounting, or that the directors have identified material uncertainties relating to going concern that have not been appropriately disclosed. This conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410. However, future events or conditions may cause the Company to cease to continue as a going concern, and the above conclusions are not a guarantee that the Company will continue in operation. Directors’ responsibilities The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the DTR of the UK FCA. As disclosed in note 2, the annual financial statements of the company are prepared in accordance with UK-adopted international accounting standards. The directors are responsible for preparing the condensed set of financial statements included in the half-yearly financial report in accordance with IAS 34 as adopted for use in the UK. In preparing the condensed set of financial statements, the directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. Our responsibility Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half- yearly financial report based on our review. Our conclusion, including our conclusions relating to going concern, are based on procedures that are less extensive than audit procedures, as described in the Basis for conclusion section of this report. The purpose of our review work and to whom we owe our responsibilities This report is made solely to the Company in accordance with the terms of our engagement to assist the Company in meeting the requirements of the DTR of the UK FCA. Our review has been undertaken so that we might state to the Company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company for our review work, for this report, or for the conclusions we have reached. Simon Clark for and on behalf of KPMG LLP Chartered Accountants 15 Canada Square London E14 5GL 4 August 2026
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Shawbrook Group plc | Interim Financial Report 2026 52 Interim Financial Statements 53 Condensed consolidated statement of profit and loss 54 Condensed consolidated statement of comprehensive income 55 Condensed consolidated statement of financial position 56 Condensed consolidated statement of changes in equity 57 Condensed consolidated statement of cash flows 58 Notes to the interim financial statements
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Shawbrook Group plc | Interim Financial Report 2026 53 Condensed consolidated statement of profit and loss For the six months ended 30 June (Unaudited) Note 2026 £m 2025 £m Interest income calculated using the effective interest rate method 9 692.9 619.1 Other interest and similar income 9 51.5 75.6 Interest expense and similar charges 10 (389.8) (383.8) Net interest income 354.6 310.9 Operating lease rental income 3.6 3.6 Depreciation on operating leases (2.9) (3.2) Net other operating lease income – 0.3 Net operating lease income 0.7 0.7 Fee and commission income 11.5 7.9 Fee and commission expense (9.7) (8.0) Net fee and commission income/(expense) 1.8 (0.1) Net gains on structured asset sales 25.8 23.3 Net gains/(losses) on derivative financial instruments and hedge accounting 1.9 (1.0) Net gains on loans and advances measured at FVTPL 1.6 – Net other operating income 0.8 1.7 Net operating income 387.2 335.5 Administrative expenses 11 (142.9) (139.8) Impairment losses on financial assets 12 (50.7) (32.6) Provisions 1.0 – Total operating expenses (192.6) (172.4) Profit before tax 194.6 163.1 Tax 13 (48.4) (43.6) Profit after tax 146.2 119.5 2026 2025 Earnings per share Basic (pence) 15 25.3 22.1 Diluted (pence) 15 25.1 22.1 The notes on pages 58 to 75 are an integral part of these condensed consolidated interim financial statements.
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Shawbrook Group plc | Interim Financial Report 2026 54 Condensed consolidated statement of comprehensive income For the six months ended 30 June (Unaudited) Note 2026 £m 2025 £m Profit after tax 146.2 119.5 Items that may be reclassified subsequently to the statement of profit and loss: Cash flow hedging reserve Net gains/(losses) from effective portion of changes in fair value 7.2 (3.9) Reclassifications to statement of profit and loss (4.4) (2.9) Related tax (0.8) 1.8 Movement in cash flow hedging reserve 2.0 (5.0) Fair value through other comprehensive income reserve Net losses from changes in fair value (26.6) (10.2) Change in loss allowance 12 (2.1) 1.5 Related tax 7.7 2.3 Movement in fair value through other comprehensive income reserve (21.0) (6.4) Total items that may be reclassified subsequently to the statement of profit and loss (19.0) (11.4) Other comprehensive income, net of tax (19.0) (11.4) Total comprehensive income 127.2 108.1 Attributable to Shareholders 120.7 100.5 Other equity owners 6.5 7.6 The notes on pages 58 to 75 are an integral part of these condensed consolidated interim financial statements.
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Shawbrook Group plc | Interim Financial Report 2026 55 Condensed consolidated statement of financial position Note 30 Jun 2026 (Unaudited) £m 31 Dec 2025 (Audited) £m Assets Cash and balances at central banks 24 2,264.4 1,924.5 Loans and advances to banks 24 282.1 246.8 Loans and advances to customers 16 17,371.8 17,770.1 Investment securities 17 2,601.8 2,158.0 Derivative financial assets 18 88.5 87.5 Current tax receivable 35.8 7.9 Property, plant and equipment 57.8 54.6 Intangible assets 19 148.9 145.8 Deferred tax assets 26.3 23.8 Other assets 36.7 49.9 Assets held for sale 20 276.9 – Total assets 23,191.0 22,468.9 Liabilities Amounts due to banks 1,761.2 1,430.6 Customer deposits 18,798.8 18,353.5 Provisions 21 3.9 8.3 Derivative financial liabilities 18 52.8 93.2 Debt securities in issue 22 171.7 412.3 Lease liabilities 26.5 24.8 Other liabilities 104.8 132.2 Subordinated debt liability 171.7 171.5 Total liabilities 21,091.4 20,626.4 Note 30 Jun 2026 (Unaudited) £m 31 Dec 2025 (Audited) £m Equity Share capital 2.6 2.6 Share premium account 134.7 134.7 Capital securities (Additional Tier 1) 26 267.8 123.1 Capital contribution reserve 19.9 19.9 Cash flow hedging reserve 6.7 4.7 Fair value through other comprehensive income reserve 22.8 43.8 Retained earnings 1,645.1 1,513.7 Total equity 2,099.6 1,842.5 Total equity and liabilities 23,191.0 22,468.9 The notes on pages 58 to 75 are an integral part of these condensed consolidated interim financial statements. These condensed consolidated interim financial statements were approved by the Board of Directors on 4 August 2026 and were signed on its behalf by: Marcelino Castrillo Dylan Minto Chief Executive Officer Chief Financial Officer Registered number 07240248
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Shawbrook Group plc | Interim Financial Report 2026 56 Condensed consolidated statement of changes in equity For the six months ended 30 June 2026 (Unaudited) Share capital Share premium account Capital securities Capital contribution reserve Cash flow hedging reserve FVOCI reserve Retained earnings Total equity £m £m £m £m £m £m £m £m As at 1 January 2026 2.6 134.7 123.1 19.9 4.7 43.8 1,513.7 1,842.5 Profit for the period – – – – – – 146.2 146.2 Movement in cash flow hedging reserve – – – – 2.0 – – 2.0 Movement in fair value through other comprehensive income reserve – – – – – (21.0) – (21.0) Total comprehensive income – – – – 2.0 (21.0) 146.2 127.2 Issuance of AT1 securities – – 250.0 – – – – 250.0 AT1 issuance related costs – – (2.3) – – – – (2.3) Redemption of AT1 securities – – (104.9) – – – – (104.9) Premium and transfer of AT1 issuance costs on redemption – – 1.9 – – – (10.3) (8.4) Equity-settled share-based payments – – – – – – 2.0 2.0 Coupon paid on capital securities – – – – – – (6.5) (6.5) As at 30 June 2026 2.6 134.7 267.8 19.9 6.7 22.8 1,645.1 2,099.6 The notes on pages 58 to 75 are an integral part of these condensed consolidated interim financial statements. For the six months ended 30 June 2025 (Unaudited) Share capital £m Share premium account £m Capital securities £m Capital contribution reserve £m Cash flow hedging reserve £m FVOCI reserve £m Retained earnings £m Total equity £m As at 1 January 2025 2.5 87.3 123.1 19.9 12.7 29.6 1,307.2 1,582.3 Profit for the period – – – – – – 119.5 119.5 Movement in cash flow hedging reserve – – – – (5.0) – – (5.0) Movement in fair value through other comprehensive income reserve – – – – – (6.4) – (6.4) Total comprehensive income – – – – (5.0) (6.4) 119.5 108.1 Equity-settled share-based payments – – – – – – 1.6 1.6 Coupon paid on capital securities – – – – – – (7.6) (7.6) As at 30 June 2025 2.5 87.3 123.1 19.9 7.7 23.2 1,420.7 1,684.4
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Shawbrook Group plc | Interim Financial Report 2026 57 Condensed consolidated statement of cash flows For the six months ended 30 June (Unaudited) Note 2026 £m 2025 £m Cash flows from operating activities Profit before tax 194.6 163.1 Adjustments for non-cash items and other adjustments included in the statement of profit and loss 163.8 46.3 Decrease/(increase) in operating assets 25 68.3 (548.3) Increase in operating liabilities 25 373.1 910.0 Tax paid (71.9) (42.9) Net cash generated from operating activities 727.9 528.2 Cash flows from investing activities Purchase of investment securities (824.8) (870.2) Disposals and maturities of investment securities 270.5 73.7 Purchase of property, plant and equipment (1.8) (0.4) Purchase and development of intangible assets (10.6) (9.3) Investment in right-of-use asset (2.7) – Net cash used by investing activities (569.4) (806.2) Additional information on operational cash flows from interest Interest paid (389.6) (427.5) Interest received 741.0 746.1 The notes on pages 58 to 75 are an integral part of these condensed consolidated interim financial statements. For the six months ended 30 June (Unaudited) Note 2026 £m 2025 £m Cash flows from financing activities Increase/(decrease) in amounts due to banks 330.6 (380.2) Issuance of AT1 securities (net of cost of issuance) 247.7 – Redemption of AT1 securities (net of costs) (113.3) – Repurchase and redemption of debt securities (240.7) (118.0) Payment of principal portion of lease liabilities (1.0) (0.2) Issue of subordinated debt – 75.0 Redemption of subordinated debt – (30.2) Costs arising on issue of subordinated debt – (0.5) Costs arising on issue of debt securities (0.1) – Coupon paid to holders of capital securities (6.5) (7.6) Net cash generated/(used by) from financing activities 216.7 (461.7) Net increase/(decrease) in cash and cash equivalents 375.2 (739.7) Cash and cash equivalents as at 1 January 2,171.3 2,549.1 Cash and cash equivalents as at 30 June 25 2,546.5 1,809.4
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Shawbrook Group plc | Interim Financial Report 2026 58 Notes to the interim financial statements 1. Reporting entity Shawbrook Group plc (the ‘Company’) is a public limited company incorporated and domiciled in the UK. The Company is registered in England and Wales (company number 07240248). The registered office is Floor 10, 40 Leadenhall Street, London, EC3A 2BJ, with effect from 10 July 2026. The condensed consolidated interim financial statements of Shawbrook Group plc, for the six months ended 30 June 2026, comprise the results of the Company and its subsidiaries (together, the ‘Group’), including its principal subsidiary, Shawbrook Bank Limited. There is no controlling entity following the dissolution of Marlin Bidco in January 2026. Details of subsidiary companies included in the Group are provided in Note 27. The principal activities of the Group are lending and savings. 2. Basis of preparation The condensed consolidated interim financial statements for the six months ended 30 June 2026, have been prepared in accordance with IAS 34 ‘Interim Financial Reporting’, as adopted for use in the UK. The condensed consolidated interim financial statements do not include all information and disclosures required in full annual financial statements. Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group’s financial position and performance since the last annual consolidated financial statements. The Interim Financial Statements should be read in conjunction with the Group’s 2025 Annual Report and Accounts, which were prepared in accordance with UK-adopted international accounting standards and are available on the Group’s website www.shawbrook.co.uk/investors. The condensed consolidated interim financial statements are prepared on a going concern basis (see Note 3) and on a historical cost basis, except for the following material items that are carried at fair value: derivative financial instruments and certain loan receivables measured at fair value through other comprehensive income (FVOCI) and loans measured at fair value through profit and loss (FVTPL). All amounts are presented in pounds sterling, which is the functional currency of the Company and all of its subsidiaries. Amounts are rounded to the nearest million (to one decimal place), except where otherwise indicated. The comparative figures for the six months ended 30 June 2025 have not been audited and do not constitute the Group’s statutory accounts for that period, as defined in Section 434 of the Companies Act 2006. The comparative figures for the year ended 31 December 2025 are the Group’s statutory accounts and have been reported on by its auditor and delivered to the Registrar of Companies. The report of the auditor on those statutory accounts was unqualified, did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report, and did not contain a statement under Section 498(2) or (3) of the Companies Act 2006. 3. Going concern The condensed consolidated interim financial statements are prepared on a going concern basis. In assessing the appropriateness of this basis, the Directors considered the Group’s current financial position and forward-looking projections of profitability, cash flows and capital resources over a period of at least 12 months from the date of approval of the financial statements. In forming this assessment, the Directors also considered the Group’s risk assessment framework, including the identification and assessment of top and emerging risks (see page 22 of the Risk Report) through management and Board risk governance, and the potential impacts of these risks on the Group’s financial position and business model. The Directors have reviewed the Group’s capital and liquidity plans under the Group’s approved budget and considered the results of stress testing and scenario analysis performed as part of the going concern assessment and the ILAAP and ICAAP processes. The stress testing included a range of severe but plausible scenarios designed to assess resilience across differing macroeconomic and interest rate environments, together with additional idiosyncratic and balance sheet stresses relevant to the Group. The assessment also considered the effect of management actions that are within the control of the Group. Based on the assessment performed, including the outcomes of base case forecasts and severe but plausible stresses, the Directors have a reasonable expectation that the Group has sufficient resources to continue in operational existence for a period of at least 12 months from the date of approval of these interim financial statements and to continue to meet its regulatory capital and liquidity requirements. Accordingly, the Directors have concluded that it is appropriate to adopt the going concern basis in preparing these interim financial statements. 4. Presentation of risk and capital management disclosures Disclosures required under IFRS 7 ‘Financial Instruments: Disclosures’ concerning the nature and extent of risks relating to financial instruments are included within the principal risks section of the Interim Risk Report. Specifically, this section includes updates and additional information about credit risk (starting on page 25), market, liquidity and capital risk (starting on page 43). Disclosures required under IAS 1 ‘Presentation of Financial Statements’ concerning the management of capital are also included within the principal risks section of the Interim Risk Report (starting on page 44). 5. Accounting policies New and revised standards and interpretations Adoption of new and revised standards and interpretations during the current reporting period On 1 January 2026, amendments to IFRS 9 and IFRS 7 (Classification and Measurement of Financial Instruments), amendments to IFRS 9 and IFRS 7 (Contracts Referencing Nature-Dependent Electricity), and Annual Improvements to IFRS Accounting Standards - Volume 11 came into effect and were adopted by the Group during the current reporting period. The nature- dependent electricity amendments are not applicable to the Group. None of the other adopted amendments had a significant impact on the Group's financial statements or resulted in any reclassification of financial assets. The Group is within the scope of the OECD Pillar Two model rules. The Group applies the mandatory temporary exception under IAS 12 from recognising deferred taxes related to Pillar Two income taxes. No top-up tax liability arises, as the UK jurisdictional effective tax rate is well above the 15% minimum threshold. Future developments A number of amendments to existing accounting standards have not yet come into effect. The Group has not early adopted any of these amendments. The most significant upcoming amendment is IFRS 18: Presentation and Disclosure in Financial Statements, effective 1 January 2027 and endorsed by the UK Endorsement Board on 10 December 2025. IFRS 18 replaces IAS 1 and will require changes to the structure of the income statement, including mandatory categorisation of income and expenses, and enhanced disclosure of Management-defined Performance Measures. Retrospective application will be required, including restatement of 2026 comparatives. While IFRS 18 is not expected to change the Group's underlying financial performance or reported results, it will require changes to the presentation of the primary statements. The Group continues to assess the impact and implementation work is ongoing. None of the other forthcoming amendments are expected to have a material impact on the Group's financial statements.
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Shawbrook Group plc | Interim Financial Report 2026 59 6. Critical accounting judgements and estimates The preparation of financial statements requires the Group to make judgements and estimates that affect the application of accounting policies and the reported results and financial position. Estimates, and the underlying assumptions driving these estimates, are reviewed by the Group on an ongoing basis. Due to the inherent uncertainty in making estimates, actual results reported in the future may differ from the amounts estimated. Revisions to estimates are recognised in the period in which the estimates are revised and in any future periods affected. The areas involving the most complex and subjective judgements, and areas where estimates are considered to have the most significant effect on the financial statements, are largely the same as those set out in Note 8 of the 2025 Annual Report and Accounts. A summary regarding the critical accounting judgements and estimates identified in the current period are set out below: a) Impairment losses on financial assets Impairment of financial assets is calculated using a forward-looking ECL model. The calculation and measurement of ECLs requires the use of complex judgements and represents a key source of estimation uncertainty. Judgements Judgements considered to have the most significant effect on amounts in the financial statements are: • determining the stage the financial asset is allocated to and therefore whether a 12-month or lifetime ECL is recognised in the financial statements. This involves judgements over whether the financial asset has had a significant increase in credit risk since initial recognition, whether the financial asset is in default or whether the financial asset is ‘cured’; and • application of judgemental adjustments to modelled ECLs when the Group judges that the modelled ECL amount does not adequately reflect the expected outcome. Estimates Underlying assumptions used in estimating ECLs that, depending on a range of factors, could result in a material adjustment in the next financial year are: • the forward-looking economic scenarios used; • probability weightings applied to these scenarios; and • model assumptions used, such as the probability of default and loss given default. Additional details of the critical judgements and estimates, including sensitivity analysis, are included in the credit risk section of the Interim Risk Report on pages 25 to 37. b) Provisions for customer remediation and conduct issues The Group continues to pursue recoveries on timeshare products from either original suppliers or, failing that, the Group’s insurers. In accordance with IAS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’, such reimbursements are recognised as an asset only when they are virtually certain. The Group typically considers a reimbursement claim to be virtually certain once it has been accepted by the other party. Motor finance commission arrangements The Group is exposed to potential liabilities in relation to motor finance commissions, in particular: (i) undisclosed commissions paid to credit intermediaries (brokers or dealers); and/or (ii) unfair and/or undisclosed discretionary commission arrangements ("DCAs"). Calculating the amount of any provision requires judgement and represents a source of estimation uncertainty. Judgements The judgements considered to have the most significant effect on amounts in the financial statements are: • determining whether it is probable that motor finance commission arrangements will give rise to an outflow of resources for the Group; and • assessing the likely scope and methodology of any FCA redress schemes, having regard to the final rules published in PS26/3 and the outcome of the ongoing legal challenges. On 30 March 2026, the FCA published Policy Statement PS26/3, setting out its final rules for industry-wide regulated motor finance redress schemes. On 1 May 2026, the FCA confirmed that its schemes had been legally challenged by multiple parties (three lenders and one consumer body). With effect from 29 June 2026, the Upper Tribunal suspended key elements of the FCA schemes pending its determination of those challenges, with a substantive hearing to be listed in late December 2026 or early 2027. The outcome of these challenges, and their potential effect on the schemes’ scope, methodology and timing, cannot be reliably estimated at this stage. Estimates Underlying assumptions used in estimating the provision that, depending on a range of factors, could result in a material adjustment in the next financial year are the modelled exposure under the FCA's final methodology, any amendments to the scheme arising from the ongoing legal proceedings, and a no schemes/complaints led scenario. Additional information about provisions for customer remediation and conduct issues are provided in Note 21. c) Fair value of loans and investment securities measured at fair value through other comprehensive income The Group holds certain mortgage loans and investment securities that are measured at FVOCI. In valuing these assets, the Group makes use of unobservable inputs (i.e. Level 3 in the fair value hierarchy) and the calculation represents a source of estimation uncertainty. Estimates To calculate the fair value, the Group uses the discounted cash flow method, in which the significant unobservable inputs are the risk-adjusted discount rate and prepayment curve used. Additional details, including sensitivity analysis, are provided in Note 24. d) ThinCats deferred tax assets Judgements Based on an analysis of both the forecasted future taxable profits for the ThinCats brand and the forecast profits of the wider Shawbrook Group in the post 5-year acquisition-restricted period the Group has concluded it is more likely than not that the remaining deferred tax asset will be recovered through future taxable income. The Group's business plans continue to project future profits that are sufficient to fully recognise the ThinCats’ deferred tax asset relating to the remaining historic losses calculated at the prudent rate of 25% based on the future corporation tax rate applicable to the ThinCats’ sub-group. Estimates The carrying amount of the deferred tax asset is sensitive to the forecast future taxable profits of both ThinCats and the wider Shawbrook Group. A significant adverse change in those profit projections could result in a reduction in the amount recognised. As at 30 June 2026, the Group considers the forecasts to be reasonable and the full deferred tax asset to remain recoverable.
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Shawbrook Group plc | Interim Financial Report 2026 60 7. Other judgements Securitisations Securitisation transactions involve the transfer of certain customer loans to a structured entity. In determining the accounting treatment to be applied for such transactions the Group must perform a number of complex assessments, which necessitates the application of judgement. Judgements Judgements considered to have the most significant effect on amounts in the financial statements are: • assessing whether the Group controls the structured entity and whether it should therefore be treated as a subsidiary by virtue of control and consolidated; and • assessing whether the securitised loans should be derecognised. The outcome of these assessments significantly impacts the resulting accounting treatment and amounts recognised in the financial statements. In making such assessments the structure and terms of the contractual arrangements are scrutinised, with particular consideration given to matters such as: who will service and manage the securitised loans and the ownership of any ‘X’ notes and residual certificates issued by the structured entity (which represents the ‘equity’ investment in the securitised loans, giving the rights to any excess spread and the risk of losses associated with any defaults). During the period, the Group completed a securitisation transaction and disposed of the equity investment in loans securitised in a consolidated structured entity. Judgement was applied to conclude that both the new and previously consolidated structures entities should not be consolidated, and the securitised loans met the criteria for derecognition from the statement of financial position. Additional details are provided in Note 23. 8. Segmental analysis The following section provides information regarding the operating segments of the Group. Substantially all of the Group’s activities are in the UK and, as such, segmental analysis on geographical lines is not presented. The Group is not reliant on any single customer and therefore information about major customers is also not provided. Reportable operating segments Description Commercial Real Estate Provides specialist commercial and residential mortgage products to professional landlords, investors and homeowners. SME Provides a range of innovative and tailored solutions to support UK small and medium-sized enterprises (SME), including structured and event-driven lending, working capital and cashflow-based lending, and core SME term lending. Retail Consumer Finance Provides specialist finance within the high-end vehicle market via JBR Capital Limited. Retail Mortgage Brands Comprised of the Group’s subsidiaries, The Mortgage Lender Limited and Bluestone Mortgages Limited. Provides residential mortgages for those with complex income profiles, including the self-employed, entrepreneurs and first-time buyers, and buy-to- let mortgages. Any income or expense not allocated to the above reportable operating segments is included in ‘Other’, which does not represent a reportable operating segment. The following tables provide summarised information regarding the results of each reportable operating segment based on the presentation for reportable operating segments to reflect how results are provided to the chief operating decision maker. Where applicable, segment results are presented on an underlying basis, with underlying adjustments presented separately to allow reconciliation to the statutory results of the Group. Underlying performance represents the basis on which the chief operating decision maker (CODM) assesses segment performance. Underlying adjustments comprise items of income or expense that are material by size and/or nature and are typically non-recurring. These include a credit relating to provisions for liabilities and charges, IPO-related costs and corporate activity costs. Underlying adjustments are determined at a Group level and are not allocated to operating segments. These items are presented separately in order to facilitate comparison of the Group’s underlying performance from period to period. Further details are provided on page 11. The results for each segment are presented on a consolidated basis, as reviewed by the CODM. Intra-group transactions between segments are minimal and are not separately disclosed. Intra-group transactions are conducted under terms that are usual and customary for such activities.
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Shawbrook Group plc | Interim Financial Report 2026 61 8. Segmental analysis (continued) Commercial Retail Six months ended 30 June 2026 (Unaudited) Real Estate £m SME £m Consumer Finance £m Retail Mortgage Brands £m Other £m Underlying total £m Underlying adjustments £m Statutory total £m Interest and similar income 247.3 225.3 47.3 126.7 97.8 744.4 – 744.4 Interest expense and similar charges (148.8) (89.1) (17.0) (83.4) (51.5) (389.8) – (389.8) Net interest income 98.5 136.2 30.3 43.3 46.3 354.6 – 354.6 Net operating lease income – 0.7 – – – 0.7 – 0.7 Net fee and commission income/(expense) (0.9) 5.1 (2.2) 0.2 (0.4) 1.8 – 1.8 Net gains on structured asset sales – – – 25.8 – 25.8 – 25.8 Net gains on derivative financial instruments and hedge accounting – – – – 1.9 1.9 – 1.9 Net gains on loans and advances at FVTPL – 1.6 – – – 1.6 – 1.6 Net other operating income – – – – 0.8 0.8 – 0.8 Net operating income 97.6 143.6 28.1 69.3 48.6 387.2 – 387.2 Administrative expenses (13.8) (26.2) (10.3) (9.8) (80.9) (141.0) (1.9) (142.9) Impairment (losses)/reversal on financial assets (10.8) (35.6) (5.0) 0.7 – (50.7) – (50.7) Provisions – – – – – – 1.0 1.0 Total operating expenses (24.6) (61.8) (15.3) (9.1) (80.9) (191.7) (0.9) (192.6) Profit/(loss) before tax 73.0 81.8 12.8 60.2 (32.3) 195.5 (0.9) 194.6 Commercial Retail Six months ended 30 June 2025 (Unaudited) Real Estate £m SME £m Consumer Finance £m Retail Mortgage Brands £m Other £m Underlying total £m Underlying adjustments £m Statutory total £m Interest and similar income 219.7 169.1 46.1 132.0 127.8 694.7 – 694.7 Interest expense and similar charges (129.3) (67.8) (15.6) (87.5) (83.6) (383.8) – (383.8) Net interest income 90.4 101.3 30.5 44.5 44.2 310.9 – 310.9 Net operating lease income – 0.7 – – – 0.7 – 0.7 Net fee and commission income/(expense) (1.0) 4.2 (0.7) – (2.6) (0.1) – (0.1) Net gains on structured asset sales – – – 23.3 – 23.3 – 23.3 Net losses on derivative financial instruments and hedge accounting – – – – (1.0) (1.0) – (1.0) Net gains on loans and advances at FVTPL – – – – – – – – Net other operating income – – – – 1.7 1.7 – 1.7 Net operating income 89.4 106.2 29.8 67.8 42.3 335.5 – 335.5 Administrative expenses (12.6) (19.9) (11.5) (14.8) (75.5) (134.3) (5.5) (139.8) Impairment losses on financial assets (2.0) (19.1) (7.4) (4.1) – (32.6) – (32.6) Total operating expenses (14.6) (39.0) (18.9) (18.9) (75.5) (166.9) (5.5) (172.4) Profit/(loss) before tax 74.8 67.2 10.9 48.9 (33.2) 168.6 (5.5) 163.1
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Shawbrook Group plc | Interim Financial Report 2026 62 8. Segmental analysis (continued) The following tables present summarised information about the Group’s assets and liabilities based on the reportable operating segments. Loans and advances to customers and assets on operating leases (i.e. the Group’s ‘loan book’) are allocated to the relevant lending segments. All other assets and liabilities are allocated to ‘Other’. As at 30 June 2026 (Unaudited) Commercial Retail Other £m Total £m Real Estate £m SME £m Consumer Finance £m Retail Mortgage Brands £m Assets 7,920.1 4,766.5 995.9 3,989.9 5,518.6 23,191.0 Liabilities – – – – (21,091.4) (21,091.4) Net assets/(liabilities) 7,920.1 4,766.5 995.9 3,989.9 (15,572.8) 2,099.6 As at 31 December 2025 (Audited) Commercial Retail Other £m Total £m Real Estate £m SME £m Consumer Finance £m Retail Mortgage Brands £m Assets 7,625.5 4,396.5 1,021.8 4,750.9 4,674.2 22,468.9 Liabilities – – – – (20,626.4) (20,626.4) Net assets/(liabilities) 7,625.5 4,396.5 1,021.8 4,750.9 (15,952.2) 1,842.5 9. Interest and similar income Six months ended 30 June (Unaudited) 2026 £m 2025 £m Interest income calculated using the effective interest rate method Cash and balances at central banks 37.2 46.4 Loans and advances to customers: loan receivables measured at amortised cost 508.8 424.8 Loans and advances to customers: loan receivables measured at FVOCI 97.5 104.3 Investment securities 49.4 43.6 Total interest income calculated using the effective interest rate method 692.9 619.1 Other interest and similar income Loans and advances to customers: finance lease and instalment credit receivables 35.6 35.3 Loans and advances to customers: loan receivables measured at FVTPL 3.9 – Derivative financial instruments 12.0 40.3 Total other interest and similar income 51.5 75.6 Total interest and similar income 744.4 694.7 Interest income calculated using the effective interest rate (EIR) method is attributable to financial assets measured at amortised cost and at FVOCI. Interest income on derivative financial instruments includes interest income of £10.5 million (30 June 2025: £37.4 million) attributable to derivative financial instruments in qualifying hedging relationships hedging assets. For financial assets measured at FVTPL, interest income is determined using the EIR method together with any additional returns that reflect the specific features of the loan.
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Shawbrook Group plc | Interim Financial Report 2026 63 10. Interest expense and similar charges Six months ended 30 June (Unaudited) 2026 £m 2025 £m Amounts due to banks 28.4 20.1 Customer deposits 344.8 333.2 Derivative financial instruments (1.8) 3.9 Debt securities in issue 8.6 16.7 Lease liabilities 0.6 0.6 Subordinated debt liability 9.2 9.3 Total interest expense and similar charges 389.8 383.8 Except for interest on derivative financial instruments and lease liabilities, amounts in the above table are calculated using the EIR method and are attributable to financial liabilities measured at amortised cost. Interest expense on derivative financial instruments includes interest income of £2.3 million (30 June 2025: £2.6 million of interest expense) attributable to derivative financial instruments in qualifying hedging relationships hedging liabilities. 11. Administrative expenses Six months ended 30 June (Unaudited) 2026 £m 2025 £m Payroll costs 84.9 79.1 Depreciation of property, plant and equipment1 3.1 3.0 Amortisation of intangible assets 7.5 6.7 Other administrative expenses 47.4 51.0 Total administrative expenses 142.9 139.8 Included within payroll costs is an equity-settled share-based payment charge of £2.0 million (30 June 2025: £1.6 million) recognised in respect of share options granted to employees. Further details of the Group's share-based payment arrangements are provided in Note 18 of the 2025 Annual Report and Accounts. 1 Includes depreciation of all asset categories except for assets on operating leases. Depreciation of assets on operating leases is presented as a separate line item in the statement of profit and loss, forming part of the net operating lease income total. 12. Impairment losses on financial assets Impairment losses on financial assets are attributable to the Group’s loans and advances to customers and loan commitments. Impairment losses for the Group’s other financial asset categories that are in scope of IFRS 9 impairments (cash and balances at central banks, loans and advances to banks and investment securities) are immaterial, totalling less than £0.1 million in both reported periods. The following table provides analysis of impairment losses on financial assets by financial asset category. Six months ended 30 June (Unaudited) 2026 £m 2025 £m Impairment losses on loans and advances to customers at amortised cost Net ECL charge for the period2 38.6 5.5 Loan balances written off in the period 20.6 29.6 Loan modifications – 0.6 Amounts recovered in the period in respect of loan balances previously written off (9.0) (6.2) Total impairment losses on loans and advances to customers at amortised cost 50.2 29.5 Impairment losses on loans and advances to customers at FVOCI Net ECL charge for the period3 0.6 3.1 Total impairment losses on loans and advances to customers at FVOCI 0.6 3.1 Impairment on loan commitments Net ECL for the period (0.1) – Total impairment on loan commitments (0.1) – Total impairment losses on financial assets 50.7 32.6 Further analysis of the net ECL charge for the period in respect of loans and advances to customers at amortised cost and loans and advances to customers at FVOCI is provided in the credit risk section of the Interim Risk Report on page 28 and 31, respectively. Critical accounting judgements and estimates The impairment of financial assets is an area identified as involving critical accounting judgements and estimates. Additional details are provided in Note 6(a) and in the credit risk section of the Interim Risk Report on pages 25 to 37. 2 Includes £7.7 million ECL movement on assets held for sale. 3 In the six months ended 30 June 2026, the net ECL charge of £0.6 million (30 June 2025: £3.1 million) comprises a £2.1 million reduction in the loss allowance for the period (30 June 2025: £1.5 million) and a £2.7 million charge (30 June 2025: £1.6 million) on securitised loan portfolios derecognised on transfer to unconsolidated structured entities, the offset of which is recognised within 'Net gains on structured asset sales'. 1 SME total assets include assets on operating leases of £23.7 million as at 30 June 2026 (31 December 2025: £24.6 million).
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Shawbrook Group plc | Interim Financial Report 2026 64 13. Tax The tax charge is based on the Group's estimate of the weighted average annual tax rate expected for the full financial year. The tax effects of one-off items are not included in the weighted average annual tax rate but are recognised in the relevant period. The estimated tax rate used in these condensed consolidated interim financial statements may differ from the Group's estimate of the tax rate for the annual financial statements. The effective tax rate for the six months ended 30 June 2026 is 24.9% (30 June 2025: 26.7%). Based on the above, the tax charge recognised in the statement of profit and loss for the six months ended 30 June 2026 is £48.4 million (30 June 2025: £43.6 million). The Group is a multinational group within the scope of the OECD Pillar Two rules, with operations in the UK and an Employee Benefit Trust (EBT) in Jersey. For the period, the Group expects to qualify for the transitional Country-by- Country Reporting (CbCR) safe harbour in each jurisdiction and accordingly expects to have no liability to multinational or domestic top-up tax. The Group intends to file a simplified GloBE Information Return on that safe-harbour basis. As required by IAS 12, the Group applies the mandatory exception to recognising and disclosing deferred taxes arising from Pillar Two. The Group’s business plans project future profits that are sufficient to fully recognise the remaining deferred tax asset of £18.8 million as at 30 June 2026 calculated at the rate of 25% in respect of ThinCats’ historic trading losses. Based on the analysis of both the immediate forecasted future taxable profits for the ThinCats brand and the forecasted profits of the wider Shawbrook Group post the 5-year acquisition-restricted period the Group has concluded it is more likely than not that the deferred tax asset will be recovered through future taxable income. Other deferred tax assets and liabilities in Shawbrook Bank Limited have been calculated based on an aggregation rate of 27.0%, being the estimated rate at which they will unwind over their remaining life. 14. Dividend No interim ordinary dividend has been declared in respect of the six months ended 30 June 2026 (six months ended 30 June 2025: £nil). 15. Earnings per share The table below shows the earnings per share (EPS) for the six months ended 30 June 2026 and 2025. The calculation is based on the profit after tax attributable to equity shareholders less coupon paid on capital securities divided by the number of weighted average ordinary shares. For the purposes of basic and diluted earnings per share, the weighted average number of ordinary shares in issue during the period has been used for basic earnings per share, adjusted for the dilutive effect of share options and awards for diluted earnings per share. Share options and awards granted towards the end of the year ended 31 December 2025 have not yet vested; however, they are dilutive in the current period and are therefore included in the diluted calculation in the table below resulting in an increase of 3.6 million shares (2025: nil) in the weighted average number of ordinary shares used for diluted earnings per share. For the six months ended 30 June (Unaudited) 2026 £m 2025 £m Profit attributable to equity holders 146.2 119.5 Coupon paid on capital securities (6.5) (7.6) Premium paid on redemption of AT1 (8.4) – Profit attributable to ordinary shareholders 131.3 111.9 Average number of shares (million) Basic 519.7 506.2 Effect of dilutive share options and awards 3.6 – Diluted 523.3 506.2 Basic (pence) 25.3 22.1 Diluted (pence) 25.1 22.1
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Shawbrook Group plc | Interim Financial Report 2026 65 16. Loans and advances to customers The following tables analyse the carrying amount of loans and advances to customers by loan classification and agreement type. Finance lease and instalment credit receivables are presented within loans and advances to customers at amortised cost. Loans and advances to customers at amortised cost Loans and advances to customers at FVOCI £m Total £m As at 30 June 2026 (Unaudited) Gross carrying amount £m Loss allowance £m Carrying amount £m Loans and advances to customers at FVTPL £m Loan receivables1 13,479.0 (213.1) 13,265.9 3,422.4 99.3 16,787.6 Finance lease receivables 23.3 (0.5) 22.8 – – 22.8 Instalment credit receivables 877.3 (14.4) 862.9 – – 862.9 14,379.6 (228.0) 14,151.6 3,422.4 99.3 17,673.3 Fair value adjustments for hedged risk (12.1) (12.5) – (24.6) Total loans and advances to customers 14,139.5 3,409.9 99.3 17,648.7 Loans and advances to customers at amortised cost Loans and advances to customers at FVOCI £m Total £m As at 31 December 2025 (Audited) Gross carrying amount £m Loss allowance £m Carrying amount £m Loans and advances to customers at FVTPL £m Loan receivables 12,953.5 (178.8) 12,774.7 4,046.0 62.9 16,883.6 Finance lease receivables 22.2 (0.6) 21.6 – – 21.6 Instalment credit receivables 839.5 (10.0) 829.5 – – 829.5 13,815.2 (189.4) 13,625.8 4,046.0 62.9 17,734.7 Fair value adjustments for hedged risk 13.4 22.0 – 35.4 Total loans and advances to customers 13,639.2 4,068.0 62.9 17,770.1 Additional analysis of the Group’s loans and advances to customers at amortised cost and loans and advances to customers at FVOCI and the associated loss allowance is provided in the credit risk section of the Interim Risk Report starting on page 28 and 31, respectively. Loans and advances to customers include the following pledged and transferred assets. Amounts represent the carrying amount (after loss allowance deducted). • £2,628.9 million (31 December 2025: £2,442.6 million) includes amounts encumbered through access to the Bank of England’s Sterling Monetary Framework. • £1,267.6 million (31 December 2025: £1,918.1 million) transferred to consolidated structured entities as part of securitisation programmes, which are pledged as collateral against debt securities in issue. 17. Investment securities Six months ended 30 June 2026 (Unaudited) Covered bonds £m Debt securities £m Total £m As at 1 January 2026 905.6 1,252.4 2,158.0 Additions 10.5 814.3 824.8 Maturities/Disposals (42.3) (228.2) (270.5) Other movements (0.4) (110.1) (110.5) As at 30 June 2026 873.4 1,728.4 2,601.8 Debt securities represent mortgage-backed debt securities, of which £1,183.7 million (31 December 2025: £735.8 million) were issued by unconsolidated structured entities as part of securitisation transactions that were retained by the Group. The Group's investment securities balance includes: • £428.9 million (31 December 2025: £390.2 million) includes amounts encumbered through access to the Bank of England’s Sterling Monetary Framework. • £83.5 million (31 December 2025: £nil) includes amounts encumbered through repurchase agreements. • £455.0 million (31 December 2025: £178.1 million) classified as FVOCI. • £63.8 million (31 December 2025: £35.3 million) of restricted amounts invested in short-term money market funds by consolidated structured entities. • Included within the £228.2 million (31 December 2025: £423.2 million) of debt securities maturities/disposals is £191.1 million (31 December 2025: £390.0 million) relating to debt securities issued by unconsolidated structured entities that were sold at par during the six months ended 30 June 2026. No gain or loss was recognised in the statement of profit and loss on these disposals. • The loss allowance for investment securities is immaterial, totalling less than £0.1 million in both reported periods. 1 Includes £284.6 million of Gross carrying amount and £7.7 million loss allowance transferred to assets held for sale.
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Shawbrook Group plc | Interim Financial Report 2026 66 18. Derivative financial instruments Derivative financial instruments Derivative financial instruments are used by the Group for risk management purposes to minimise or eliminate the impact of movements in interest rates and foreign exchange rates. Derivatives are not used for trading or speculative purposes. The Group uses the International Swaps and Derivatives Association Master Agreement to document these transactions in conjunction with a Credit Support Annex. The following table analyses the Group’s derivative financial instruments by instrument type and whether the instrument is designated as a hedging instrument in a qualifying hedging relationship. Assets Liabilities As at 30 June 2026 (Unaudited) Nominal amount £m Carrying amount £m Nominal amount £m Carrying amount £m Instruments not in hedging relationships Interest rate swaps 1,228.9 21.9 1,941.5 21.9 Spot and forward foreign exchange swaps 11.8 0.1 37.4 0.4 Total instruments not in hedging relationships 1,240.7 22.0 1,978.9 22.3 Instruments in fair value hedging relationships Interest rate swaps 7,053.8 62.9 6,604.0 27.1 Total instruments in fair value hedging relationships 7,053.8 62.9 6,604.0 27.1 Instruments in cash flow hedging relationships Interest rate swaps 687.0 3.6 796.0 3.4 Total instruments in cash flow hedging relationships 687.0 3.6 796.0 3.4 Total derivative financial instruments 8,981.5 88.5 9,378.9 52.8 Assets Liabilities As at 31 December 2025 (Audited) Nominal amount £m Carrying amount £m Nominal amount £m Carrying amount £m Instruments not in hedging relationships Interest rate swaps 2,220.5 26.2 3,642.1 26.3 Spot and forward foreign exchange swaps 70.9 0.3 34.7 0.1 Total instruments not in hedging relationships 2,291.4 26.5 3,676.8 26.4 Instruments in fair value hedging relationships Interest rate swaps 8,348.8 60.7 6,241.0 65.2 Total instruments in fair value hedging relationships 8,348.8 60.7 6,241.0 65.2 Instruments in cash flow hedging relationships Interest rate swaps 432.0 0.3 549.0 1.6 Total instruments in cash flow hedging relationships 432.0 0.3 549.0 1.6 Total derivative financial instruments 11,072.2 87.5 10,466.8 93.2 Interest rate swaps are used to manage interest rate risk associated with the Group’s loans and advances to customers (including pipeline loans) and customer deposits (including offers/ pipeline for savings). Spot and forward foreign exchange swaps are used to manage foreign exchange risk associated with the Group’s loans and advances to customers and loans and advances to banks.
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Shawbrook Group plc | Interim Financial Report 2026 67 19. Intangible assets Six months ended 30 June 2026 (Unaudited) Goodwill £m Internally generated intangibles £m Other intangibles £m Total £m Carrying amount as at 1 January 2026 95.6 38.2 12.0 145.8 Additions – 10.6 – 10.6 Amortisation charge for the period – (6.0) (1.5) (7.5) Carrying amount as at 30 June 2026 95.6 42.8 10.5 148.9 Other intangibles comprise assets recognised on acquisition, including brands, customer relationships and technology assets. At the end of the reported period, the Group performed a review for indicators of goodwill impairment and none were identified. Consequently, impairment testing has not been reperformed as at 30 June 2026. The carrying amount of goodwill at 1 January 2026 includes £1.3 million and £12.6 million arising on the acquisitions of ThinCats Group Limited and ImployApp Limited (trading as Playter), completed on 30 September 2025 and 2 December 2025 respectively. In accordance with IFRS 3 'Business Combinations', the Group has a period of up to 12 months from each acquisition date to finalise the fair values of assets acquired and liabilities assumed. Both measurement periods remain open at 30 June 2026, closing no later than 29 September 2026 and 1 December 2026 respectively. The provisional fair values recognised at acquisition are as set out in Note 10 of the 2025 Annual Report and Accounts. No adjustments to those provisional fair values have been recognised during the six months ended 30 June 2026. Should any adjustments arise before the measurement periods close, they will be applied retrospectively to the acquisition date fair values with a corresponding adjustment to goodwill. 20. Assets held for sale During the period ended 30 June 2026, the Group continued to execute its strategy of reallocating capital from broader consumer lending activities towards JBR Capital, its specialist high-end motor vehicle finance business, which delivers attractive risk-adjusted returns. In line with this strategy, the Group is actively pursuing the disposal of a portfolio of motor finance receivables originated through Blue Motor Finance Limited ("BMF"). The portfolio had been in run-off since the termination of the forward flow agreement with BMF in January 2026 and had a carrying value of £276.9 million at 30 June 2026. Details of the loans classified as held for sale are as follows: Six months ended 30 June 2026 (Unaudited) Gross carrying amount £m Loss allowance £m Carrying amount £m Total loans held for sale 284.6 (7.7) 276.9 Further analysis of the Group’s assets held for sale and the associated loss allowance can be found in the Credit Risk section of the Risk Report on page 32. 21. Provisions Six months ended 30 June 2026 (Unaudited) Loss provision £m Other provisions £m Total £m As at 1 January 2026 0.6 7.7 8.3 Provisions utilised – (1.7) (1.7) Provisions released1 (0.1) (2.6) (2.7) As at 30 June 2026 0.5 3.4 3.9 Loss provision The loss provision represents the loss allowance on loan commitments. Provisions released represent the net ECL credit for the period on loan commitments and is recognised in impairment losses on financial assets in the statement of profit and loss (see Note 12). Other provisions Other provisions represent provisions made in relation to customer remediation and conduct issues and provisions for legal costs to defend cases brought against the Group. Provisions made are recognised in provisions in the statement of profit and loss. The Group continues to manage residual complaints from customers about holiday ownership (timeshare) products, where the Group provided finance to customers to fund the purchase of those products. Based on the information available at the reporting date, the Group has recognised a provision of £1.6 million (31 December 2025: £6.3 million), reflecting the best estimate of probable outflows associated with timeshare claims. Ultimately, redress will depend on ongoing claim rates. At this time, the Group believes there are excess funds in the provision, and a reduction is now prudent. The reduction in the provision reflects the Group’s revised best estimate, taking into account the closure of a significant number of cases by the FOS in the previous 6 months, reduced levels of new complaints and low uphold rates on recent complaints. 1 Provisions released are presented net.
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Shawbrook Group plc | Interim Financial Report 2026 68 21. Provisions (continued) The £1.0 million net release to the statement of profit and loss reflects a £2.6 million reduction in the timeshare provision partly offset by a £1.6 million reduction in the associated insurance recovery asset. The Group has commenced work to pursue recoveries from either original suppliers or, failing that, the Group’s insurers, however, in accordance with IAS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’, such reimbursement cannot be recognised as an asset unless it is virtually certain. The Group typically does not deem a reimbursement claim to be virtually certain until it has been accepted by the other party. As at 30 June 2026, the Group recognised a reimbursement asset of £4.0 million (31 December 2025: £5.6 million), representing the element of expected insurance recoveries assessed as virtually certain. This is included in other assets. The reduction reflects the lower expected level of future redress payments. As at 30 June 2026, the Group has recognised a provision of £1.0 million (31 December 2025: £1.0 million) for redress liabilities around motor finance commission arrangements. Following the FCA's publication of its final rules for industry-wide regulated motor finance redress schemes in Policy Statement PS26/3 in March 2026, the Upper Tribunal has suspended key elements of the schemes pending determination of legal challenges. As a result, firms are not currently required to calculate or pay redress, or contact eligible customers about compensation, under the schemes. The outcome of these legal challenges, and their potential effect on the schemes’ scope, methodology and timing, cannot be reliably estimated at this stage. Having considered the available information, including modelled outcomes under both scheme-led and complaints-led scenarios, the Group has maintained its provision at £1.0 million at 30 June 2026. Other provisions, excluding those relating to timeshare and motor finance, were £0.8 million as at 30 June 2026 (31 December 2025: £0.4 million). Critical accounting judgements and estimates The calculation of other provisions relating to customer remediation and conduct issues is an area identified as involving critical accounting judgements and estimates. Additional details are provided in Note 6(b). 22. Debt securities in issue Debt securities in issue comprise asset-backed notes issued to external investors by consolidated structured entities as part of securitisation transactions. The notes are secured on the underlying portfolio of securitised loans and recourse under the notes is limited to the structured entity only. A summary of notes in issue is provided in the following table. Amounts included in the table include accrued interest and unamortised capitalised costs. Issued Issuer Listing Optional redemption date Maturity date 30 June 2026 (Unaudited) £m 31 December 2025 (Audited) £m Class A mortgage- backed floating rate notes Nov 2023 Lanebrook Mortgage Transaction 2023-1 plc Euronext Dublin May 2027 Aug 2060 171.7 177.5 Class A mortgage- backed floating rate notes May 2024 Lanebrook Mortgage Transaction 2024-1 plc Euronext Dublin Dec 2027 Mar 2061 – 234.8 Total debt securities in issue 171.7 412.3 Movements in the year are summarised in the following table: 2026 (Unaudited) 2025 (Audited) £m £m As at 1 January 412.3 549.2 Issuances – – Acquisitions through business combinations – 538.1 Repurchases and redemptions (5.9) (675.0) Disposals (234.8) – Costs capitalised 0.1 (0.2) Other movements – 0.2 As at 30 June / 31 December 171.7 412.3
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Shawbrook Group plc | Interim Financial Report 2026 69 22. Debt securities in issue (continued) During the period ended 30 June 2026, debt securities in issue of £234.8 million were derecognised from the Group following the sale of all retained Class A-E mortgage-backed floating rate notes issued by Lanebrook Mortgage Transaction 2024-1 plc to external investors. Lanebrook Mortgage Transaction 2024-1 plc is no longer treated as subsidiary by virtue of control, therefore no longer consolidated into the Group. During the year ended 31 December 2025, Class A-E mortgage-backed floating rate notes issued by Genesis Mortgage Funding 2022-1 plc have been fully redeemed following the optional redemption date. As part of the ThinCats acquisition in 2025, the Group acquired issued debt securities totalling £538.1 million, comprised of senior and mezzanine notes issued to external investors by a consolidated structured entity. The notes were redeemed shortly after the acquisition date. 23. Securitisation and structured entities The following table summarises the carrying amount of securitised loans that continue to be recognised in the statement of financial position and the associated debt securities issued by consolidated structured entities. 30 June 2026 (Unaudited) 31 December 2025 (Audited) Loans and advances securitised £m Debt securities in issue £m Loans and advances securitised £m Debt securities in issue £m Ealbrook Mortgage Funding 2022-1 plc 72.8 86.6 101.2 113.4 Lanebrook Mortgage Transaction 2022-1 plc 259.7 282.3 283.3 288.3 Shawbrook Mortgage Funding 2022-1 plc 271.9 282.2 340.4 347.7 Holbrook Mortgage Transaction 2023-1 plc 240.2 248.8 261.8 268.3 Lanebrook Mortgage Transaction 2023-1 plc 370.1 382.4 375.7 387.4 Lanebrook Mortgage Transaction 2024-1 plc – – 521.7 528.1 ThinCats Funding Limited 56.5 61.3 39.5 44.0 1,271.2 1,343.6 1,923.6 1,977.2 Less: loss allowance on securitised loans (3.6) (5.5) Less: held by the Group (and eliminated on consolidation) (1,171.9) (1,564.9) Total recognised in statement of financial position 1,267.6 171.7 1,918.1 412.3 Consolidated structured entities During the six months ended 30 June 2026, the following transactions with consolidated structured entity took place: • In March 2026, the Group purchased debt securities issued by TC Funding Limited from TC Funding II Limited, consolidating another deemed separate entity silo of TC Funding Limited into the Group. • In March 2026, debt securities in issue of £234.8 million were derecognised from the Group following the sale of all retained Class A-E mortgage-backed floating rate notes issued by Lanebrook Mortgage Transaction 2024-1 plc to external investors, a net gain of £4.8 million was recognised in the statement of profit and loss. Lanebrook Mortgage Transaction 2024-1 plc is no longer treated as subsidiary by virtue of control, therefore no longer consolidated into the Group. Unconsolidated structured entities During the six months ended 30 June 2026, the following transactions with unconsolidated structured entity took place: • In May 2026, loans with a carrying amount of £803.1 million (net of £1.5 million loss allowance), comprising loans held at amortised cost of £15.7 million and loans held at FVOCI of £787.4 million, were transferred to an unconsolidated structured entity. Upon transfer, a net gain on derecognition of £21.0 million was recognised in the statement of profit and loss. The Group paid up-front expenses incurred in forming the unconsolidated structured entity of £1.2 million, including amounts to capitalise the entity, all bank and legal expenses. The Group has no intention to provide any further financial or other support following these initial set-up costs. • In June 2026, the Group disposed of £191.1 million debt securities issued by unconsolidated structured entities. No gain or loss was recognised in the statement of profit and loss on disposal. Other accounting judgements For each securitisation transaction completed, the assessments involved in determining whether the Group controls the structured entity and whether the loans meet the criteria to be derecognised are identified as involving accounting judgements. Additional details are provided in Note 7.
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Shawbrook Group plc | Interim Financial Report 2026 70 24. Financial assets and financial liabilities a) Classification of financial assets and financial liabilities The following table analyses the carrying amount of the Group’s financial assets and financial liabilities by measurement classification. There were no reclassifications between classification categories during either of the reported periods. 30 June 2026 (Unaudited) 31 December 2025 (Audited) Amortised cost £m FVOCI £m FVTPL £m Carrying amount £m Amortised cost £m FVOCI £m FVTPL £m Carrying amount £m Financial assets Cash and balances at central banks 2,264.4 – – 2,264.4 1,924.5 – – 1,924.5 Loans and advances to banks 282.1 – – 282.1 246.8 – – 246.8 Loans and advances to customers1, 2 14,139.5 3,409.9 99.3 17,648.7 13,639.2 4,068.0 62.9 17,770.1 Investment securities 2,146.8 455.0 – 2,601.8 1,979.9 178.1 – 2,158.0 Derivative financial assets – – 88.5 88.5 – – 87.5 87.5 Total financial assets 18,832.8 3,864.9 187.8 22,885.5 17,790.4 4,246.1 150.4 22,186.9 Financial liabilities Amounts due to banks 1,761.2 – – 1,761.2 1,430.6 – – 1,430.6 Customer deposits 18,798.8 – – 18,798.8 18,353.5 – – 18,353.5 Derivative financial liabilities – – 52.8 52.8 – – 93.2 93.2 Debt securities in issue 171.7 – – 171.7 412.3 – – 412.3 Lease liabilities3 26.5 – – 26.5 24.8 – – 24.8 Subordinated debt liability 171.7 – – 171.7 171.5 – – 171.5 Total financial liabilities 20,929.9 – 52.8 20,982.7 20,392.7 – 93.2 20,485.9 1 The loans and advances to customers balance includes finance lease and instalment credit receivables, which are measured in accordance with IFRS 16 ‘Leases’. These are included in the amortised cost column. 2 Lease liabilities, which are measured in accordance with IFRS 16 ‘Leases’, are included in the amortised cost column. b) Fair value of financial assets and financial liabilities The valuation techniques applied by the Group to calculate the fair values of its financial assets and liabilities remain unchanged from the year ended 31 December 2025, as detailed in Note 40(b) of the 2025 Annual Report and Accounts. In accordance with IFRS 7, fair value disclosures are not required for lease liabilities. As such, the Group does not calculate a fair value for lease liabilities and they are not included in the following fair value disclosures. The Group uses a fair value hierarchy which reflects the significance of the inputs used in making fair value measurements. There are three levels to the hierarchy as follows: • Level 1: quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date; • Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). A Level 2 input must be observable for substantially the full term of the instrument. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves observable at commonly quoted intervals, implied volatilities and credit spreads. Assets and liabilities classified as Level 2 have been valued using models whose inputs are observable in an active market; and • Level 3: inputs for the asset or liabilities that are not based on observable market data (unobservable inputs). 1 The loans and advances to customers balance includes finance lease and instalment credit receivables, which are measured in accordance with IFRS 16 ‘Leases’. These are included in the amortised cost column. 2 Includes assets held for sale of £276.9 million. 3 Lease liabilities, which are measured in accordance with IFRS 16 ‘Leases’, are included in the amortised cost column. 1 The loans and advances to customers balance includes finance lease and instalment credit receivables, which are measured
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Shawbrook Group plc | Interim Financial Report 2026 71 24. Financial assets and financial liabilities (continued) Financial assets and financial liabilities measured at amortised cost The following table analyses the Group’s financial assets and financial liabilities measured at amortised cost into the fair value hierarchy. There were no transfers between levels of the fair value hierarchy during either of the reported periods. 30 June 2026 (Unaudited) 31 December 2025 (Audited) Level 1 £m Level 2 £m Level 3 £m Level 1 £m Level 2 £m Level 3 £m Financial assets at amortised cost Cash and balances at central banks 2,264.4 – – 1,924.5 – – Loans and advances to banks – 282.1 – – 246.8 – Loans and advances to customers1 – – 14,139.5 – – 13,639.2 Investment securities 1,349.8 797.0 – 1,394.3 585.6 – Financial liabilities at amortised cost Amounts due to banks – 1,761.2 – – 1,430.6 – Customer deposits – 18,798.8 – – 18,353.5 – Debt securities in issue – 171.7 – – 412.3 – Subordinated debt liability – 171.7 – – 171.5 – The following table provides a comparison of the carrying amount per the statement of financial position and the calculated fair value for the Group’s financial assets and financial liabilities measured at amortised cost. For cash and balances at central banks, loans and advances to banks, the carrying amount is considered to be a reasonable approximation of fair value and, as such, these are not included in the following table. 30 June 2026 (Unaudited) 31 December 2025 (Audited) Carrying amount £m Fair value £m Carrying amount £m Fair value £m Financial assets at amortised cost Loans and advances to customers1 14,139.5 14,414.5 13,639.2 13,966.4 Investment securities 2,146.8 2,156.1 1,979.9 1,983.7 Financial liabilities at amortised cost Amounts due to banks 1,761.2 1,761.2 1,430.6 1,430.6 Customer deposits 18,798.8 18,797.9 18,353.5 18,373.4 Debt securities in issue 171.7 172.3 412.3 413.9 Subordinated debt liability 171.7 186.8 171.5 189.9 1 Includes assets held for sale of £276.9 million.
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Shawbrook Group plc | Interim Financial Report 2026 72 24. Financial assets and financial liabilities (continued) Financial assets and financial liabilities measured at fair value The following table analyses the Group’s financial assets and financial liabilities measured at fair value into the fair value hierarchy. There were no transfers between levels of the fair value hierarchy during either of the reported periods. All financial assets and financial liabilities measured at fair value are recurring fair value measurements. 30 June 2026 (Unaudited) 31 December 2025 (Audited) Level 1 £m Level 2 £m Level 3 £m Level 1 £m Level 2 £m Level 3 £m Financial assets at fair value Loans and advances to customers – – 3,509.2 – – 4,130.9 Investment securities 68.4 386.6 – 27.9 150.2 – Derivative financial assets – 88.5 – – 87.5 – Financial liabilities at fair value Derivative financial liabilities – 52.8 – – 93.2 – Financial assets and financial liabilities measured at fair value: Level 3 analysis The following section provides additional analysis of the Group’s financial assets and financial liabilities measured at fair value that are categorised as Level 3. Movements in the fair value of Level 3 financial assets and financial liabilities are as follows: Six months ended 30 June 2026 (Unaudited) Loans and advances to customers at FVOCI £m Loans and advances to customers at FVTPL £m As at 1 January 2026 4,068.0 62.9 Additions1 818.1 35.6 Net fair value (losses)/gains recognised in the statement of profit and loss (34.5) 1.6 Net fair value losses recognised in other comprehensive income (26.0) – Settlements/repayments (1,415.7) (0.8) As at 30 June 2026 3,409.9 99.3 In relation to the above table: • Net fair value gains/(losses) on FVOCI loans and advances recognised in the statement of profit and loss are included in net gains/(losses) on derivative financial instruments and hedge accounting. The net gains/(losses) attributable to loans and advances to customers at FVOCI represent unrealised gains/(losses) on hedged items, which are largely offset by unrealised gains/(losses) on the derivative financial instruments in the hedge accounting relationship. • Net fair value gains/(losses) recognised in other comprehensive income are included in net gains/(losses) from changes in fair value in relation to the FVOCI reserve. All gains/(losses) recognised are unrealised. For the Level 3 loans and advances to customers at FVOCI, the fair value is calculated using the discounted cash flow method. The significant unobservable inputs used in this calculation are the risk-adjusted discount rate, which is derived from cost of replacement assets based on comparable market rates, and the prepayment curve. As at 30 June 2026, the following risk-adjusted discount rates are used in the calculation of fair value on loans and advances to customers at FVOCI: TML Buy to Let portfolio - 5.73%, TML owner occupied portfolio - 6.09% and BML portfolio - 6.89% (31 December 2025: 5.27%, 5.51% and 6.59%). 1 Additions include new financial assets originated or purchased, additional drawdowns and accrued interest.
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Shawbrook Group plc | Interim Financial Report 2026 73 24. Financial assets and financial liabilities (continued) The fair value of Level 3 loans and advances to customers measured at FVTPL is determined using a discounted cash flow approach. The significant unobservable inputs include the risk-adjusted discount rate, comprising a risk-free rate based on the forward SONIA curve over the remaining weighted average life of the loan, and a risk premium derived from the loan’s origination IRR, adjusted for any increase in credit risk since origination. The discount rate is updated at each reporting date to reflect changes in market interest rates and credit risk. As at 30 June 2026, a risk-adjusted discount rate of 16.4% is used in the calculation of fair value (31 December 2025: 16.4%). Critical accounting estimates The valuation of loans and advances to customers and investment securities at FVOCI is an area identified as involving critical accounting estimates. Additional details are provided in Note 6(c). The Group believes that the calculated fair values are appropriate. However, the following table provides sensitivity analysis to illustrate the impact that reasonably possible changes in key assumptions could have on the fair value of assets held at FVOCI, with movements recognised in other comprehensive income and equity, and on the statement of profit and loss from assets held at FVTPL. Change in significant unobservable input (Unaudited) Increase/(decrease) to asset value and FVOCI reserve £m Increase/(decrease) to asset value and profit and loss £m Decrease in discount rate by 50 bps 39.2 0.8 Increase in discount rate by 50 bps (38.3) (0.8) Decrease in prepayment curve by 10% 24.5 0.5 Increase in prepayment curve by 10% (15.8) (0.8) 25. Notes to the cash flow statement Net change in operating assets For the six months ended 30 June (Unaudited) 2026 £m 2025 £m Decrease/(increase) in loans and advances to customers1 55.3 (645.4) Decrease in derivative financial assets 1.8 94.9 Increase in operating lease assets (2.0) (1.0) Decrease in other assets 13.2 3.2 Decrease/(increase) in operating assets 68.3 (548.3) Net change in operating liabilities For the six months ended 30 June (Unaudited) 2026 £m 2025 £m Increase in customer deposits 445.3 879.0 Decrease in provisions (4.4) (1.9) Decrease in derivative financial liabilities (40.4) (8.2) (Decrease)/increase in other liabilities (27.4) 41.1 Increase in operating liabilities 373.1 910.0 Cash and cash equivalents 30 June 2026 (Unaudited) £m 31 December 2025 (Audited) £m Cash and balances at central banks 2,264.4 1,924.5 Loans and advances to banks 282.1 246.8 Total cash and cash equivalents 2,546.5 2,171.3 1 Includes assets held for sale of £276.9 million.
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Shawbrook Group plc | Interim Financial Report 2026 74 25. Notes to the cash flow statement (continued) The Group’s cash and cash equivalents includes: • £117.0 million (31 December 2025: £156.9 million) of cash collateral paid against derivative contracts. • £13.8 million (31 December 2025: £38.3 million) of securitisation cash, which represents the cash balances of consolidated structured entities. The loss allowance for both cash and balances at central banks and loans and advances to banks is immaterial in both reported periods, totalling less than £0.1 million. 26. Capital securities Capital securities comprise securities issued by the Company, as summarised in the following table. Amounts included in the table are presented net of transaction costs of £2.3 million (31 December 2025: £1.9 million). Issued Listing Next call date1 30 June 2026 (Unaudited) £m 31 December 2025 (Audited) £m 8.375% fixed rate reset perpetual Additional Tier 1 write down capital securities May 2026 International Securities Market of London Stock Exchange May 2031 247.7 – 12.103% fixed rate reset perpetual Additional Tier 1 write down capital securities Oct 2022 International Securities Market of London Stock Exchange Dec 2027 19.1 122.1 10.298% fixed rate reset perpetual Additional Tier 1 write down capital securities (interest rate reset from 7.875% in December 2022) Dec 2017 Global Exchange Market of Euronext Dublin Dec 2027 1.0 1.0 Total capital securities 267.8 123.1 During the six months ended 30 June 2026, as part of a capital optimisation strategy, the Company completed a tender offer for its 12.103% fixed rate reset perpetual Additional Tier 1 write down capital securities. On 6 May 2026, £104.9 million of these securities were repurchased pursuant to a tender offer at a purchase price of 108.0% of their principal amount. The premium of £8.4 million paid on redemption plus £1.9 million of issuance cost were recognised directly in equity as a charge to retained earnings. Following the redemption, £19.1 million of the 12.103% securities remained outstanding. Concurrently, the Company issued £250 million of 8.375% fixed rate reset perpetual Additional Tier 1 write down capital securities (the 'new securities'), listed on the International Securities Market of the London Stock Exchange. The new securities were issued at par, with transaction costs of £2.3 million recognised directly in equity. The 10.298% fixed rate reset perpetual Additional Tier 1 write down capital securities were not subject to the liability management exercise and remain outstanding at their carrying amount of £1.0 million. During the period, the Company paid all interest when scheduled. Distributions made to holders of the capital securities, recognised directly in equity, totalled £6.5 million (30 June 2025: £7.6 million). The principal terms of the capital securities are as follows: • Interest: interest is fully discretionary and the Company may elect to, or in certain circumstances is obliged to, cancel (in whole or in part) any interest otherwise scheduled to be paid. Any interest not paid when scheduled is cancelled. The capital securities bear a fixed rate of interest until the first reset date. On the first reset date, and on each fifth anniversary thereafter, the interest rate will be reset and fixed based on a set margin above the five-year Gilt Rate (benchmark gilt) for such a period. • Redemption: the capital securities are perpetual with no fixed redemption date. The Company may elect to redeem all, but not part, of the capital securities by exercising its call option on certain dates, or during defined periods, as specified in the terms of the agreement. Optional redemption may also take place for certain regulatory or tax reasons. Any optional redemption requires the prior consent of the PRA. • Write-down: in the event of the Company's Common Equity Tier 1 capital ratio falling below 7.0%, an automatic and permanent write down shall occur, resulting in the full reduction and cancellation of all capital securities and the cancellation of any interest which is accrued and unpaid. • Ranking: the capital securities constitute direct, unsecured and subordinated obligations of the Company and rank pari passu, without any preference, among themselves. The capital securities also rank pari passu with the most senior class of issued preference shares in the Company, if any, and rank ahead of the holders of all other classes of issued shares of the Company, but rank junior to the claims of unsubordinated and subordinated creditors, other than those creditors whose claims rank, or are expressed to rank, pari passu with, or junior to, the claims of holders of the capital securities. In conjunction with each transaction between the Company and external investors, equivalent transactions take place between the Company and its principal subsidiary, Shawbrook Bank Limited. The capital securities issued by Shawbrook Bank Limited are on terms consistent with the equivalent listed capital securities issued by the Company. This is recognised in the Company statement of financial position as part of the investment in subsidiaries. 1 The call date may be a fixed date or a defined period of time. Where it relates to a period of time, the date listed reflects the start of the period, thus reflecting the earliest date the call option may be exercised.
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Shawbrook Group plc | Interim Financial Report 2026 75 27. Subsidiary companies Full details of subsidiary companies included in the Group are detailed in Note 45 of the 2025 Annual Report and Accounts. Changes to subsidiary companies during the six months ended 30 June 2026 are summarised below. Wholly owned subsidiary companies There have been no changes to wholly owned subsidiaries during the six months ended 30 June 2026, with the exception of the following: • JBR Capital Limited is now wholly owned directly by Shawbrook Bank Limited, having previously been held through JBR Auto Holdings Limited • JBR Auto Services Limited was dissolved during the reporting period • JBR Auto Finance Limited was dissolved shortly after the interim reporting date (14 July 2026) • JBR Auto Holdings Limited - an application for dissolution has been made and is expected to be confirmed in September 2026 The registered office of Singer & Friedlander Commercial Finance Limited has changed to Floor 2 Atrium Court, 50 Waterloo Street, Glasgow, Scotland, G2 6HQ. Subsidiaries by virtue of control JBR Capital DD Limited, which was previously consolidated as a subsidiary by virtue of control and was in the process of being liquidated as noted in Note 45 of the 2025 Annual Report and Accounts, was dissolved during the six months ended 30 June 2026. The liquidation of Genesis Mortgage Funding 2022-1 PLC and TC Funding V DAC remains ongoing at 30 June 2026. Other than these, there have been no further changes to subsidiaries by virtue of control during the six months ended 30 June 2026. 28. Related party transactions Information about related parties of the Group is detailed in Note 46 of the 2025 Annual Report and Accounts. Other than the matters in Note 1 and Note 30, during the six months ended 30 June 2026, there have been no significant changes in related parties, nor any significant new related party transactions, that have had a material effect on the Group's financial position or performance. 29. Contingent assets and contingent liabilities Part of the Group’s business is regulated by the Consumer Credit Act (CCA), a piece of UK legislation designed to protect the rights of consumers. The Group’s Consumer franchise is exposed to risk under Section 75 and Section 140A of the CCA, in relation to any misrepresentations, breaches of contract or other failures by suppliers of goods and services to customers, where the purchase of those goods and services is financed by the Group. While the Group would have recourse to the supplier in the event of such liability, if the supplier became insolvent, that recourse would have limited value. 30. Events after the reporting period Other than the two events discussed below, there have been no significant events between 30 June 2026 and the date of approval of the interim report that require a change or additional disclosure in the condensed interim financial report. Subsequent to 30 June 2026, on 4 August 2026, the Group signed a contract with Torque Funding Limited, a special purpose vehicle managed by Pollen Street Capital ("PSC"), to sell the BMF portfolio outlined in Note 20. As at 30 June 2026, the portfolio comprised a carrying value of £276.9 million. The Group expects to recognise an immaterial loss on disposal. PSC is a related party of the Group by virtue of its 37.6% shareholding in the Company's issued share capital and its effective control over Torque Funding Limited. With effect from 10 July 2026, the Group's registered office changed to Floor 10, 40 Leadenhall Street, London, EC3A 2BJ.
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Shawbrook Group plc | Interim Financial Report 2026 76 Other information 77 Abbreviations 78 Other performance indicators 78 Alternative Performance Measures 82 Forward-looking statements
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Shawbrook Group plc | Interim Financial Report 2026 77 Abbreviations Throughout this document: ‘Company’ refers to: Shawbrook Group plc ‘Group’ refers to: the ‘Company’ and its subsidiaries ‘Shawbrook’ refers to: the ‘Group’ The following abbreviations are used within this document: ABL Asset Backed Lending AI Artificial Intelligence APE Average Principal Employed AT1 Additional Tier 1 bps Basis point BMF Blue Motor Finance Limited BML Bluestone Mortgages Limited CAGR Compound Annual Growth Rate CbCR Country-by-Country Reporting CCA Consumer Credit Act CET1 Common Equity Tier 1 CODM Chief operating decision maker CPI Consumer Price Index CRD Capital Requirements Directive CRO Chief Risk Officer CRR/CRR II Capital Requirements Regulation C-SREP Capital Supervisory Review and Evaluation Process CTO Chief Technology Officer DCA Discretionary Commission Arrangements DTR Disclosure Guidance and Transparency Rules EBA European Banking Authority EBT Employee Benefit Trust ECL Expected credit loss EDI Equality, diversity and inclusion EIR Effective interest rate EPS Earnings per share EU European Union ExRC Executive Risk Committee FCA Financial Conduct Authority FLA Finance & Leasing Association FOS Financial Ombudsman Service FVOCI Fair value through other comprehensive income FVTPL Fair value through profit or loss GDP Gross Domestic Product GloBE Global Anti-Base Erosion GRCA Governance, Risk and Compliance Assurance HQLA High-Quality Liquid Assets IAS International Accounting Standards ICAAP Internal Capital Adequacy Assessment Process IFRS International Financial Reporting Standards ILAAP Internal Liquidity Adequacy Assessment Process IPO Initial Public Offering IRR Internal Rate of Return JBR JBR Capital Limited LCR Liquidity coverage ratio LGD Loss given default LTV Loan to Value MPC Monetary Policy Committee NIST National Institute of Standards and Technology NSFR Net stable funding ratio OBR Office for Budget Responsibility OECD Organisation for Economic Co-operation and Development OTD Originate to Distribute PD Probability of default PMA Post-model adjustment POCI Purchased or originated credit-impaired PPGD Probability of Possession Given Default PRA Prudential Regulation Authority RMF Risk Management Framework SICR Significant increase in credit risk from initial recognition SMEs Small and medium-sized enterprises SMF Senior Management Function SONIA Sterling Overnight Index Average rate TCR Total Capital Requirement TML The Mortgage Lender Limited TNAV Total Net Asset Value UK United Kingdom Time periods referred to within this document are defined as follows: FY Full year: 12 months from 1 January to 31 December H1 First half: six month period from 1 January to 30 June H2 Second half: six month period from 1 July to 31 December Q1 First quarter: three month period from 1 January to 31 March Q2 Second quarter: three month period from 1 April to 30 June Q3 Third quarter: three month period from 1 July to 30 September Q4 Fourth quarter: three month period from 1 October to 31 December
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Shawbrook Group plc | Interim Financial Report 2026 78 Other performance indicators Certain financial measures disclosed in this report do not have a standardised meaning prescribed by international accounting standards and may not therefore be comparable to similar measures presented by other issuers. These measures are considered ‘alternative performance measures’ (non-GAAP financial measures) and are not a substitute for measures prescribed by international accounting standards. Definitions of financial performance indicators referred to in this report are set out below: Arrears ratio The Group calculates its arrears measure by including all accounts that are greater than 3 contractual payments down at month end but excluding loans that are term expired. This is then divided by the total loan book, excluding term expired loans. ABL and Development Finance loans are excluded from the arrears measure given there is no concept of arrears in these products. POCI loans are also excluded. Common Equity Tier 1 (CET1) capital ratio Common Equity Tier 1 capital, divided by, risk-weighted assets. Leverage ratio Total Tier 1 capital, divided by, total leverage ratio exposure measure. Liquidity coverage ratio Liquidity buffer, divided by, total 30-day net cash outflows in a standardised stress scenario. Risk-weighted assets A measure of assets adjusted for their associated risks. Risk weightings are established in accordance with Prudential Regulation Authority rules and are used to assess capital requirements and adequacy under Pillar 1. Total capital ratio Total regulatory capital, divided by, risk-weighted assets. Total Tier 1 capital ratio Total Tier 1 capital, divided by, risk-weighted assets. Alternative Performance Measures Throughout this report, the Group presents a range of key performance indicators, including Alternative Performance Measures, which management use to assess performance, monitor trends and support decision-making. The Directors believe these non-IFRS measures provide useful supplementary information to aid understanding of the Group’s underlying performance. Ratios calculated with reference to income statement items for the six-month period are annualised on a 365/181 day-count basis, unless otherwise stated. Definitions and reconciliations are set out below: Loan book The loan book is calculated as the sum of loans and advances to customers (net of loss allowance and fair value adjustments for hedged risk) and the carrying amount of assets on operating leases. Loans and advances to customers includes loans and advances to customers at amortised cost, loans and advances to customers at FVOCI and loans and advances to customers measured at fair value through profit and loss (FVTPL), along with loans transferred to assets held for sale, which are still considered to be part of the Group’s overall loan book until derecognised. (£m) H1 2026 FY 2025 Loans and advances to customers 17,371.8 17,770.1 Carrying amount of assets on operating leases 23.7 24.6 Assets held for sale 276.9 – Loan book 17,672.4 17,794.7 Loan book (including originate to distribute (OTD) assets) This measure comprises the loan book (as defined above) plus the carrying amount of all structured asset sales derecognised through our originate to distribute (OTD) strategy. (£m) H1 2026 FY 2025 Loans and advances to customers 17,371.8 17,770.1 Carrying amount of assets on operating leases 23.7 24.6 Assets held for sale 276.9 – Amounts involved in originate to distribute (OTD) assets 2,461.3 1,372.5 Total loan book (including OTD assets) 20,133.7 19,167.2 Average principal employed Average principal employed is calculated as the average of monthly closing loans and advances to customers (net of loss allowance and fair value adjustments for hedged risk), assets on operating leases included in property, plant and equipment and assets held for sale.
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Shawbrook Group plc | Interim Financial Report 2026 79 Wholesale funding Wholesale funding is calculated as the sum of amounts due to banks and debt securities in issue. (£m) H1 2026 FY 2025 Amounts due to banks 1,761.2 1,430.6 Debt securities in issue 171.7 412.3 Wholesale funding 1,932.9 1,842.9 Tangible net asset value Tangible net asset value is calculated as total assets less total liabilities, intangible assets and capital securities. (£m) H1 2026 FY 2025 Total assets 23,191.0 22,468.9 Less: Total liabilities (21,091.4) (20,626.4) Less: Intangible assets (148.9) (145.8) Less: Capital securities (267.8) (123.1) Tangible net asset value 1,682.9 1,573.6 Earnings per share Profit attributable to ordinary shareholders divided by the weighted average number of ordinary shares in issue during the period. The table below reconciles the ratio on both an underlying and statutory basis. Underlying Statutory (£m) H1 2026 H1 2025 H1 2026 H1 2025 Profit after tax 144.0 124.4 146.2 119.5 Coupon paid to holders of capital securities (6.5) (7.6) (6.5) (7.6) Premium paid on redemption of AT1 – – (8.4) – Profit after tax less AT1 coupon (A)1 137.5 116.8 131.3 111.9 Weighted average number of ordinary shares (B) 519.7 506.2 519.7 506.2 Basic earnings per share (A/B) (pence) 26.5 23.1 25.3 22.1 Gross asset yield Gross asset yield is calculated as net operating income less interest expense and similar charges, divided by average principal employed. Underlying Statutory (£m) H1 2026 H1 2025 H1 2026 H1 2025 Net operating income 387.2 335.5 387.2 335.5 Less: underlying interest expense and similar charges (389.8) (383.8) (389.8) (383.8) Total (A) 777.0 719.3 777.0 719.3 Average principal employed (B) 17,828.5 15,550.8 17,828.5 15,550.8 Gross asset yield (A/B) (%) 8.8 9.3 8.8 9.3 Liability yield Liability yield is calculated as interest expense and similar charges divided by average principal employed. Underlying Statutory (£m) H1 2026 H1 2025 H1 2026 H1 2025 Interest expense and similar charges (A) (389.8) (383.8) (389.8) (383.8) Average principal employed (B) 17,828.5 15,550.8 17,828.5 15,550.8 Liability yield (A/B) (%) (4.4) (5.0) (4.4) (5.0) Net interest margin Net interest margin is calculated as net operating income divided by average principal employed. Underlying Statutory (£m) H1 2026 H1 2025 H1 2026 H1 2025 Net operating income (A) 387.2 335.5 387.2 335.5 Average principal employed (B) 17,828.5 15,550.8 17,828.5 15,550.8 Net interest margin (A/B) (%) 4.38 4.35 4.38 4.35 1 Statutory profit after tax less AT1 coupon (A) excludes the £1.9 million release of AT1 issuance costs on redemption.
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Shawbrook Group plc | Interim Financial Report 2026 80 Cost to APE efficiency ratio Cost to APE efficiency ratio is calculated as the sum of: (i) administrative expenses; (ii) provisions in the statement of profit and loss; and (iii) total statutory results adjustments (when calculating the measure on an underlying basis), divided by average principal employed. The table below reconciles the ratio on both an underlying and statutory basis. Underlying Statutory (£m) H1 2026 H1 2025 H1 2026 H1 2025 Administrative expenses (142.9) (139.8) (142.9) (139.8) Provisions 1.0 – 1.0 – Total statutory results adjustments1 0.9 5.5 – – Total (A) (141.0) (134.3) (141.9) (139.8) Average principal employed (B) 17,828.5 15,550.8 17,828.5 15,550.8 Cost to APE efficiency ratio (A/B) (%) (1.59) (1.74) (1.61) (1.81) Cost to income ratio Cost to income ratio is calculated as the sum of: (i) administrative expenses; (ii) provisions in the statement of profit and loss; and (iii) total statutory results adjustments (when calculating the measure on an underlying basis), divided by net operating income. The table below reconciles the ratio on both an underlying and statutory basis Underlying Statutory (£m) H1 2026 H1 2025 H1 2026 H1 2025 Administrative expenses (142.9) (139.8) (142.9) (139.8) Provisions 1.0 – 1.0 – Total statutory results adjustments1 0.9 5.5 – – Total (A) (141.0) (134.3) (141.9) (139.8) Net operating income (B) 387.2 335.5 387.2 335.5 Cost to income ratio (A/B) (%) (36.4) (40.0) (36.6) (41.7) 1 Total statutory results adjustments include (i) for the six months ended 30 June 2026, (£1.0) million of corporate activity costs and (£0.9) million of IPO-related costs, net of a £1.0 million credit relating to provisions for liabilities and charges; and for the six months ended 30 June 2025, (£2.4) million of corporate activity costs and (£3.1) million of IPO-related costs. Cost of risk Cost of risk is calculated as impairment losses on financial assets, divided by average principal employed. The table below reconciles the ratio on both an underlying and statutory basis. Underlying Statutory (£m) H1 2026 H1 2025 H1 2026 H1 2025 Impairment losses on financial assets (A) (50.7) (32.6) (50.7) (32.6) Average principal employed (B) 17,828.5 15,550.8 17,828.5 15,550.8 Cost of risk (A/B) (%) (0.57) (0.42) (0.57) (0.42) Return on lending assets before tax Return on lending assets before tax is calculated as the sum of (i) profit before tax; and (ii) total statutory results adjustments (when calculating the measure on an underlying basis), divided by average principal employed. The table below reconciles the measure on both an underlying and statutory basis. Underlying Statutory (£m) H1 2026 H1 2025 H1 2026 H1 2025 Profit before tax 194.6 163.1 194.6 163.1 Total statutory results adjustments2 0.9 5.5 – – Profit before tax, before statutory adjustments (A) 195.5 168.6 194.6 163.1 Average principal employed (B) 17,828.5 15,550.8 17,828.5 15,550.8 Return on lending assets before tax (A/B) (%) 2.2 2.2 2.2 2.1 2 Total statutory results adjustments include (i) for the six months ended 30 June 2026, (£1.0m) corporate activity costs, (£0.9m) IPO-related costs and £1.0 million credit relating to provisions for liabilities and charge and; for the six months ended 30 June 2025, (£2.4) million of corporate activity costs and (£3.1) million of IPO-related costs.
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Shawbrook Group plc | Interim Financial Report 2026 81 Return on tangible equity Return on tangible equity is calculated as profit after tax, plus total statutory results adjustments (when calculating the measure on an underlying basis), less distributions made to holders of capital securities, divided by the product of average risk-weighted assets multiplied by 12.5 per cent., which is the target CET1 ratio. Average risk-weighted assets is calculated as risk-weighted assets at the beginning of the period, plus risk-weighted assets at the end of the period, divided by two. The table below reconciles the measure on both an underlying and statutory basis. Underlying Statutory (£m) H1 2026 H1 2025 H1 2026 H1 2025 Profit after tax attributable to owners 146.2 119.5 146.2 119.5 Total statutory results adjustments 1 (2.2) 4.9 – – Profit after tax attributable to owners, before statutory adjustments (A) 144.0 124.4 146.2 119.5 Coupon paid to holders of capital securities (B) (£m) (6.5) (7.6) (6.5) (7.6) Premium paid on redemption of AT1 (C) – – (8.4) – Transfer of AT1 issuance costs on redemption (D)2 – – (1.9) – A+B+C+D (£m) 137.5 116.8 129.4 111.9 Risk-weighted assets at the beginning of the period (E1) 12,003.2 9,946.6 12,003.2 9,946.6 Risk-weighted assets at the end of the period (E2) 12,476.9 10,611.6 12,476.9 10,611.6 Average risk-weighted assets ((E1+E2)/2) (F) 12,240.0 10,279.1 12,240.0 10,279.1 F * 12.5 per cent. 1,530.0 1,284.9 1,530.0 1,284.9 Return on tangible equity (%) 18.1 18.3 17.1 17.6 Return on tangible equity (calculated using actual TNAV) Return on tangible equity is calculated as profit after tax, (adjusted to deduct distributions made to holders of capital securities), divided by average tangible equity. Average tangible equity is calculated as total equity less capital securities and intangible assets at the beginning of the period, plus total equity less capital securities and intangible assets at the end of the period, divided by two. The table below reconciles the measure on both an underlying and statutory basis. Underlying Statutory (£m) H1 2026 H1 2025 H1 2026 H1 2025 Profit after tax attributable to owners 146.2 119.5 146.2 119.5 Total statutory results adjustments 1 (2.2) 4.9 – – Profit after tax attributable to owners, before statutory adjustments (A) 144.0 124.4 146.2 119.5 Coupon paid to holders of capital securities (B) (6.5) (7.6) (6.5) (7.6) Premium paid on redemption of AT1 (C) – – (8.4) – Transfer of AT1 issuance costs on redemption (D) – – (1.9) – A+B+C+D (£m) 137.5 116.8 129.4 111.9 Total equity at the beginning of the period (E1) 1,842.5 1,582.3 1,842.5 1,582.3 Capital securities (at the beginning of the period) (F1) 123.1 123.1 123.1 123.1 Intangible assets (at the beginning of the period) (G1) 145.8 124.0 145.8 124.0 E1-F1-G1 (H1) 1,573.6 1,335.2 1,573.6 1,335.2 Total equity at the end of the period (E2) 2,099.6 1,684.4 2,099.6 1,684.4 Capital securities (at the end of the period) (F2) 267.8 123.1 267.8 123.1 Intangible assets (at the end of the period) (G2) 148.9 126.6 148.9 126.6 E2-F2-G2 (H2) 1,682.9 1,434.7 1,682.9 1,434.7 Average tangible equity ((H1+H2)/2) 1,628.3 1,384.9 1,628.3 1,384.9 Return on tangible equity (%) 17.0 17.0 16.0 16.3 1 Total statutory results adjustments comprise the post tax impact of underlying adjustments as follows (i) for the six months ended 30 June 2026, (£0.9) million of IPO-related costs; (£0.7) million of corporate activity costs, and a £1.0 million credit relating to provisions for liabilities and charges, together with a £2.8 million credit from the tax credit arising on the premium paid on redemption of AT1 securities and the release of associated issuance costs (both recognised directly in equity) excluded from underlying profit as a non-recurring item associated with the AT1 tender; and (ii) for the six months ended 30 June 2025, £1.8 million for corporate activity costs and £3.1 million of IPO-related costs. 2 Statutory return on tangible equity includes a deduction of £1.9 million in respect of the release of AT1 issuance costs on redemption (D), which is not deducted in the calculation of statutory earnings per share.
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Shawbrook Group plc | Interim Financial Report 2026 82 Forward-looking statements Certain information contained in this document, including any information as to the Group’s strategy, plans or future financial or operating performance, constitutes “forward-looking statements”. Statements that are not historical facts, including statements about the beliefs and expectations of Shawbrook and the Group and Shawbrook’s directors or management, are forward-looking statements. Words such as "believes", "anticipates", "estimates", "expects", "intends", "plans", "aims", "potential", "will", "would", "could", "considered", "likely", "estimate", “targets” and variations of these words and similar future or conditional expressions, are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend upon future circumstances that may or may not occur, many of which are beyond the control of Shawbrook or the Group and all of which are based on Shawbrook’s current beliefs and expectations about future events. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Shawbrook or the Group, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward- looking statements are based on numerous assumptions regarding the present and future business strategies of Shawbrook and the Group and the environment in which Shawbrook and the Group will operate in the future. These forward-looking statements speak only as at the date of this report, and, except to the extent required by law or regulation, Shawbrook assumes no responsibility to update any of the forward-looking statements herein. Nothing in this report should be construed as a profit forecast.