Secure Trust Bank is a well-established specialist bank addressing niche markets within consumer and commercial banking.
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A key attractive feature of Secure Trust Bank (STB) is that it is a niche high-yield lender that is also diversified across the various segments. It has a track record of being nimble in responding to market changes and opportunities, which includes exiting when risk-adjusted returns are not appealing. We are forecasting 15–17% annual loan growth for FY22–23 as management sees good risk-adjusted opportunities despite the inflation uncertainty. This is backed by a strong capital base (CET1 14.5%) and good returns (forecast ROE of 10.2% and 12.3% for FY22e and FY23e respectively). In April we increased our fair value to 2,491p/share (from 2,234p) mainly due to rolling the model forward one year.
Y/E Dec |
Revenue (£m) |
EBITDA (£m) |
PBT (£m) |
EPS (fd) (p) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2020A | 166.1 | N/A | 19.1 | 81.0 | 13.0 | N/A |
| 2021A | 164.5 | N/A | 57.4 | 246.8 | 4.3 | N/A |
| 2022E | 186.5 | N/A | 40.8 | 167.2 | 6.3 | N/A |
| 2023E | 215.2 | N/A | 56.4 | 232.0 | 4.5 | N/A |
Industry outlook
Government support measures have now largely wound down but some uncertainty remains regarding the shape of the economic rebound and the rising inflation. The base economic scenario is supportive for banks with good economic growth, low unemployment and modest rise in interest rates.
Last updated on 01/07/2022Content on Secure Trust Bank
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Financials
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Price performance
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Key management |
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| David McCreadie | CEO |
| Rachel Lawrence | CFO |