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Secure Trust Bank (LSE: STB)

Last close As at 15/04/2024

GBP6.82

▲ −38.00 (−5.28%)

Market capitalisation

GBP130m

Secure Trust Bank (STB) is a well-established specialist bank addressing niche markets within consumer and business lending.

Management remains confident in achieving a c £4bn in net loan book and delivering a 14-16% return on average equity (RoAE) in the medium term. In FY24, all four of its lending businesses delivered record levels of new business lending while maintaining a stable cost of risk at 1.4% (FY22: 1.4%). STB delivered a total RoAE of 7.3% (FY22: 10.8%). Excluding gains/losses from discontinued operations and exceptional items in 2023, the continuing RoAE was 9.6% (FY22: 9.4%).

Latest Insights

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Financials | Update

Secure Trust Bank — FY23 underlying PBT broadly maintained

Financials | Update

Secure Trust Bank — V12 Retail Finance to support refreshed targets

Financials | Update

Secure Trust Bank — One-off impairment masks underlying PBT beat

Financials | Flash note

Secure Trust Bank — Positioned for strong growth in FY23
Secure-Trust-Bank_resized
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Sector

Financials

Equity Analyst

Rob Murphy

Managing Director, Financials and Investment Trusts

Analyst avatar placeholder

Armando Hoxha

Associate Analyst, Financials

Key Management

  • David McCreadie

    CEO

  • Phil Clark

    Investor relations

  • Rachel Lawrence

    CFO

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 0.3 (2.9) 1.2
Relative (2.4) (7.0) (0.2)
52 week high/low 740.0p/550.0p

Financials

Secure Trust Bank (STB) posted strong new lending growth of 13.6% in FY24, with the net loan balance reaching £3.3bn. PBT from continuing operations came in 14% lower than our expectations at £36.1m, predominantly from incurring £6.5m in exceptional costs. £4.7m of this was provisions for costs and any required redress relating to the FCA’s industry wide review into Borrowers in Financial Difficulty, while £1.8m was associated with corporate activity. Excluding these costs, PBT from continuing operations was £42.6m, up 9% y-o-y. The bank announced a final dividend of 16.2p/share, bringing the total dividend to 32.3p/share (FY22: 45.1p/share). STB also stated that it will be moving to a progressive dividend policy in FY24 following shareholder feedback. Our forecasts are under review.

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2021A 148.9 N/A 55.9 239.4 2.8 N/A
2022A 169.6 N/A 39.0 174.7 3.9 N/A
2023E 186.5 N/A 41.7 154.9 4.4 N/A
2024E 221.8 N/A 55.0 211.4 3.2 N/A

Research

Secure-Trust-Bank_resized

Update

Financials

Secure Trust Bank — V12 Retail Finance to support refreshed targets
Secure-Trust-Bank_resized

Update

Financials

Secure Trust Bank — One-off impairment masks underlying PBT beat

Financials

Update

Secure Trust Bank — FY23 underlying PBT broadly maintained

Flash note

Financials

Secure Trust Bank — Positioned for strong growth in FY23

Outlook

Financials

Secure Trust Bank — Lower-risk growth strategy delivers profit beat
Secure-Trust-Bank_resized

Flash note

Financials

Secure Trust Bank — In line, with good momentum
Secure-Trust-Bank_resized

Update

Financials

Secure Trust Bank — Revised forecasts reflect macro concerns

Flash note

Financials

Secure Trust Bank — Prudence despite resilience

Update

Financials

Secure Trust Bank — Solid interim results

Flash note

Financials

Secure Trust Bank — Strong loan momentum in Q122

Outlook

Financials

Secure Trust Bank — FY21 earnings beat with momentum
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