Secure Trust Bank is a well-established specialist bank addressing niche markets within consumer and commercial banking.
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One of Secure Trust Bank’s (STB’s) key attractions is that it is a niche, high-yield lender that is also diversified across 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. This is backed by a strong capital base (CET1 14.0%) and good returns (we forecast a return on equity of 8.9% for FY22 and 11.6% for FY23). We have trimmed our fair value by 3% to 2,407p to reflect the current challenging macro backdrop.
Y/E Dec |
Revenue (£m) |
EBITDA (£m) |
PBT (£m) |
EPS (p) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2020A | 166.1 | N/A | 19.1 | 81.0 | 8.0 | N/A |
| 2021A | 164.5 | N/A | 58.8 | 254.0 | 2.5 | N/A |
| 2022E | 173.6 | N/A | 39.5 | 157.3 | 4.1 | N/A |
| 2023E | 193.6 | N/A | 50.8 | 203.2 | 3.2 | N/A |
Industry outlook
Although management remains confident about growth opportunities, it is mindful of the deteriorating economic environment. It has already made some lending adjustments, including tightening criteria in vehicle finance and further increasing the weight of investment loans (as opposed to the higher-yielding but riskier development loans) in the real estate portfolio.
Last updated on 30/11/2022Content on Secure Trust Bank
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Financials
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| Forecast net debt (£m) | N/A |
| Forecast gearing ratio (%) | N/A |
Price performance
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Key management |
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| David McCreadie | CEO |
| Rachel Lawrence | CFO |
| Phil Clark | Investor relations |