Secure Trust Bank PLC
LSE:STB
Secure Trust Bank PLC
Secure Trust Bank Plc engages in the provision of banking activities. The company is headquartered in Solihull, West Midlands and currently employs 933 full-time employees. The company went IPO on 2011-11-02. The firm provides savings accounts and lending services. The firm operates through seven segments: Real Estate Finance, Asset Finance, Commercial Finance, Motor Finance, Retail Finance, Debt Management and Consumer Mortgages. Real Estate Finance segment is engaged in residential and commercial investment and development loans secured by United Kingdom real estate. Asset Finance segment is engaged in loans to small and medium-sized enterprises to acquire commercial assets. Commercial Finance segment is involved in invoice discounting, invoice factoring and Coronavirus Business Interruption Loan Scheme finance, for existing Commercial Finance customers. Motor Finance segment provides hire purchase agreements secured against the vehicle being financed. Retail Finance segment provides point of sale unsecured finance for in-store and online retailers. Debt Management segment is engaged in debt collection.
Secure Trust Bank Plc engages in the provision of banking activities. The company is headquartered in Solihull, West Midlands and currently employs 933 full-time employees. The company went IPO on 2011-11-02. The firm provides savings accounts and lending services. The firm operates through seven segments: Real Estate Finance, Asset Finance, Commercial Finance, Motor Finance, Retail Finance, Debt Management and Consumer Mortgages. Real Estate Finance segment is engaged in residential and commercial investment and development loans secured by United Kingdom real estate. Asset Finance segment is engaged in loans to small and medium-sized enterprises to acquire commercial assets. Commercial Finance segment is involved in invoice discounting, invoice factoring and Coronavirus Business Interruption Loan Scheme finance, for existing Commercial Finance customers. Motor Finance segment provides hire purchase agreements secured against the vehicle being financed. Retail Finance segment provides point of sale unsecured finance for in-store and online retailers. Debt Management segment is engaged in debt collection.
Profit Growth: Adjusted profit before tax rose 36.3% year-on-year to GBP 23.3 million, with statutory profit before tax up 30.4%.
Cost Discipline: Cost-to-income ratio improved significantly to 49.1%, down 4.6 percentage points, driven by strict control of operating expenses, which rose just 1.2%.
Net Interest Margin: Net interest margin increased slightly to 5.4%, but is expected to decrease as Vehicle Finance winds down.
Capital Strength: CET1 ratio increased to 12.6%, well above regulatory requirements, reflecting capital accretion.
Strategic Shift: The group exited Vehicle Finance, putting the book into runoff, which is expected to free up over GBP 25 million in annual costs by 2030 and improve future returns.
Dividend: An interim dividend of 11.8p per share was announced, consistent with the progressive dividend policy.
Guidance Update: Management signaled that future net interest margin will fall below 5.5% as the product mix changes, with new medium-term targets to be detailed at a Capital Markets event in Q4.
