money-2696219

Secure Trust Bank

LSE: STB

Market Cap£120m

Last Close 644p

Secure Trust Bank is a well-established specialist bank addressing niche markets within consumer and commercial banking.

More Secure Trust Bank content >

Investment summary

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 30/11/2022
Content on Secure Trust Bank
Secure Trust Bank – Prudence despite resilience
Financials | research Flash note | 28 October 2022
close-up-door-focus-101808
Secure Trust Bank – Solid interim results
Financials | research Update | 16 August 2022
close-up-door-focus-101808
Secure Trust Bank – Strong loan momentum in Q122
Financials | research Flash note | 17 May 2022
close-up-door-focus-101808
View more
Register to receive research on Secure Trust Bank as it is published
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (0.9) (30.0) (50.2)
Relative* (7.2) (32.2) (51.5)
52-week high/low 1382.5p/624.0p
*% relative to local index
Key management
David McCreadie CEO
Rachel Lawrence CFO
Phil Clark Investor relations