1H26 preview: Focus on funding and capital

Research evidence excerpt

1H26 preview: Focus on funding and capital

Equity Research

17 July 2026

UK Specialist Lenders

1H26 preview: Focus on funding

and capital

While we expect solid 1H updates, including resilient growth, European Banks

we do expect some focus on funding costs, which could POSITIVE Unchanged

constrain outlook for NIM, particularly at OSB. We trim EPS European Banks

Aman Rakkar, CFAslightly at both banks, but remain OW, seeing compelling

value at c5x fwd PE. +44aman.rakkar@barclays.com(0)20 3555 1425

Barclays, UK

Focus on funding costs – Shawbrook better positioned: While we're generally expecting solid European Diversified Financials

1H updates, we do expect funding costs to be an area of focus, particularly fixed-term deposits Grace Dargan

which have been written at negative spreads across the system throughout the year. While the +44 (0)20 3555 4065

spike in swap-rate volatility following the Middle East conflict provided a temporary benefit, grace.dargan@barclays.com

competition for deposits has since intensified, and against this backdrop spreads have generally Barclays, UK

been trending adversely YTD. We believe Shawbrook has navigated this competitive deposit Krystal Han

market backdrop better, underpinned by its digital platform and multi-channel offering. +44 (0)20 7116 1890

Whereas OSB deposit pricing has remained at the higher end of the market. krystal.han@barclays.com

Shawbrook (OW) 1H26 - Expecting robust underlying growth, securitisation boost to

capital: We expect 1H26 PBT to be modestly ahead of consensus, driven by elevated

securitisation-related gains (including the May Aldbrook transaction), while underlying

performance remains broadly stable with loan growth tracking c.10% FY guidance. As