Secure Trust Bank (LSE: STB)

Currency in GBP

Last close As at 04/12/2023


6.00 (0.92%)

Market capitalisation


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

UK consumer finance demand remains robust and STB is gaining share in both Vehicle Finance and Retail Finance through expanded distribution and product innovation. Arrears remain under control with low UK unemployment and high single-digit wage growth mitigating high inflation and interest rates. Meanwhile, STB has strategically shifted to lower-risk prime borrowers. Business Finance lending is subdued due to the economic environment but is now less than 50% of the loan book and likely to shrink further in relative terms.

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Equity Analyst

Robert Murphy

Managing Director, Financials and Investment Trusts

Analyst avatar placeholder

Armando Hoxha

Associate Analyst, Financials

Key Management

  • David McCreadie


  • Phil Clark

    Investor relations

  • Rachel Lawrence


Share Price Performance

Price Performance
% 1M 3M 12M
Actual 6.8 (4.1) 3.1
Relative 3.8 (3.6) 4.8
52 week high/low 802.0p/550.0p


In its Q323 trading update, Secure Trust Bank (STB) posted 1.7% q o q growth in net lending alongside 2.6% growth in its deposits. This was despite a 7% fall in new business lending from an elevated Q223 comparable as consumer spending weakened. More importantly, STB also hosted a capital markets day (CMD), where management reiterated the medium-term 14–16% return on average equity (RoAE) target and presented on the V12 Retail Finance business in detail. The RoAE should be supported by an improved mix weighted towards Retail Finance, combined with moderated volume growth and greater cost efficiency. Project Fusion is developing well and has now been extended to deliver annualised savings of £5m by the end of FY24. We have only changed our estimates for the issue of 0.2m shares under the employee share plan.

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2021A 148.9 N/A 55.9 240.0 2.7 N/A
2022A 169.6 N/A 39.0 152.9 4.3 N/A
2023E 188.5 N/A 45.0 166.1 3.9 N/A
2024E 221.8 N/A 55.0 212.4 3.1 N/A




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