LONDON (Reuters) - New British bank Shawbrook said it planned to raise 90 million pounds ($135 million) through a London Stock Exchange listing, enabling it to build capital and support future growth including possible expansion into new markets.
Shawbrook, which is one of a number of new banks to have emerged since the 2008 financial crisis, provides loans to individuals and small businesses in sectors it says are often poorly served by Britain’s biggest retail banks.
Lawmakers and regulators are keen to stimulate competition for Britain’s “big four” banks - Royal Bank of Scotland, Lloyds Banking Group, Barclays and HSBC - which provide 9 out of 10 business loans.
“We believe we are well-positioned to achieve long-term sustainable growth and that Shawbrook will become an increasingly well-known name in the specialist world of British banking,” Chief Executive Richard Pyman said in a statement.
Shawbrook increased customer loans by 70 percent to 2.3 billion pounds in 2014 and nearly doubled its underlying pre-tax profit to 49.1 million pounds.
The bank said it intended to pay a modest dividend in 2016, followed by a payout equivalent to 30 percent of its post-tax profit in 2017. It expected to increase its dividend thereafter.
($1 = 0.6675 pounds)
Reporting by Matt Scuffham, Aashika Jain and Roshni Menon; Editing by Sinead Cruise and Pravin Char