money-2696219

Secure Trust Bank

LN: STB

£291m market cap

1575p last close

Secure Trust Bank is a well-established specialist bank, addressing niche markets within consumer and commercial banking. It has launched a non-standard mortgage business.

Investment summary

The FY18 results provide evidence that Secure Trust Bank’s (STB’s) strategy of combining de-risking and selective growth is working. Adjusted EPS rose 39% y-o-y while loan growth was a robust 27%; ROE increased from 8.9% to 13.1%. STB targets further strong growth in 2019 and is investing in areas such as a new motor finance platform, treasury and risk management to underpin this. STB has entered 2019 with good momentum, healthy capital and proven flexibility to adapt to opportunities and challenges that may occur in the macro and political environment.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 129.5 N/A 27.0 116.4 13.5 N/A
2018A 151.6 N/A 36.7 162.0 9.7 N/A
2019E 167.8 N/A 42.0 183.7 8.6 N/A
2020E 185.0 N/A 52.2 225.1 7.0 N/A
Last updated on 17/04/2019
Industry outlook

Management indicates that 2019 has started with strong momentum and continued benefit from lower asset impairments. The balance sheet de-risking demonstrates a willingness to act flexibly in allocating capital and leaves STB well positioned to respond to either positive or adverse changes in the macro environment. Management remains open to M&A opportunities should they arise.

Last updated on 17/04/2019
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 28.1 33.5 (17.1)
Relative* 24.2 22.6 (19.3)
52-week high/low 2085.0p/1157.5p
*% relative to local index
Key management
Paul Lynam CEO
Neeraj Kapur FD

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