money-2696219

Secure Trust Bank

LN: STB

Market Cap£255.9m

Last Close 1372.5p

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

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Investment summary

STB disclosed in its pre-close trading update that loan growth is strong and ahead of our forecasts. STB said that it saw a record level of new business lending in Q421 at £471.1m (+52% year-on-year). The core loan balances were up ‘by double digits’ year-on-year versus FY20, compared to our forecasts of 6% (core loans) and 2% (total loans). There were no new statements regarding margins or asset quality, although the news regarding the latter was quite upbeat in the Q3 update. We take note of the positives in this statement and will wait for the release of the full set of results on 24 March to update our model and estimates.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2019A 165.5 N/A 38.7 180.2 7.6 N/A
2020A 166.1 N/A 20.1 85.2 16.1 N/A
2021E 164.6 N/A 52.7 226.5 6.1 N/A
2022E 191.3 N/A 36.3 156.6 8.8 N/A
Industry outlook

Government support measures are now winding down and some uncertainty remains regarding the shape of the economic rebound. We expect government and central banks to remain pragmatic in their support and therefore do not envisage a cliff-edge scenario despite the clear risk to forecasts.

Last updated on 21/01/2022
Content on Secure Trust Bank
Secure Trust Bank – New tech and lower impairments
Financials | Update | 30 November 2021
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Secure Trust Bank – Capital markets day optimism
Financials | Flash note | 9 November 2021
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Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 6.4 17.8 47.6
Relative* 4.6 14.6 33.1
52-week high/low 1390.0p/874.0p
*% relative to local index
Key management
David McCreadie CEO
Rachel Lawrence CFO