Secure Trust Bank (LSE: STB)

Currency in GBP

Last close As at 26/01/2023


−10.00 (−1.40%)

Market capitalisation


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

In its Q322 trading update, Secure Trust Bank (STB) said business has been trading in line with management expectations. Loan demand has remained strong in its consumer finance niches. However, the bank says it is slowing growth, tightening lending criteria and increasing its focus on operational efficiency to reflect macroeconomic uncertainty. Total loans in Q322 grew 21.5% y-o-y to £2,813m; we forecast a 15.8% increase for FY22. Asset quality has remained good while the net interest margin remained stable at 5.7% in the face of rising interest rates.




Equity Analyst

Pedro Fonseca

Pedro Fonseca

Analyst, Financials

Key Management

  • David McCreadie


  • Phil Clark

    Investor relations

  • Rachel Lawrence


Share Price Performance

Price Performance
% 1M 3M 12M
Actual 10.3 11.5 (46.9)
Relative 6.2 0.9 (48.2)
52 week high/low 1350.0p/624.0p


In its FY22 post-close trading update, Secure Trust Bank (STB) announced that business has been trading in line with management expectations and with good momentum. Continuing profit before taxes and impairments was ‘significantly’ up, while its cost to income ratio ‘improved markedly’. Core loans rose by 19.1% y-o-y (we forecast 13%), with strongest growth in consumer finance as expected. New business lending did drop 11% y-o-y for Q422 as the bank tightened its lending criteria (as previously flagged by management) due to macroeconomic concerns. Loan arrears are back to pre-pandemic levels in vehicle finance and at record low levels in retail finance. This reflects STB’s repositioning to more prime segments and the de-risking of its loan book over the last few years. STB stated that its FY22 net interest margin percentage remained stable versus H122 despite rising funding costs (this matches our expectation).

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 8.7 N/A
2021A 164.5 N/A 58.8 254.0 2.8 N/A
2022E 168.0 N/A 37.4 145.5 4.9 N/A
2023E 184.6 N/A 41.6 164.2 4.3 N/A


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