Secure Trust Bank (LSE: STB)

Currency in GBP

Last close As at 26/05/2023


14.00 (2.29%)

Market capitalisation


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

In its FY22 results, STB acknowledged a tightening lending criteria as the elevated interest rate environment prevails. Management remains focused on increasing the prime lending segment and reducing the cost-to-income ratio. Despite the toughening macroeconomic conditions, STB remains confident in achieving its medium-term ROE target of 14–16%.




Equity Analyst

Robert Murphy

Managing Director, Financials and Investment Trusts

Key Management

  • David McCreadie


  • Phil Clark

    Investor relations

  • Rachel Lawrence


Share Price Performance

Price Performance
% 1M 3M 12M
Actual (7.1) (14.3) (42.0)
Relative (3.6) (10.7) (41.8)
52 week high/low 1325.0p/612.0p


Secure Trust Bank (STB) announced a robust trading update with net lending exceeding £3bn, driven by a 17.7% sequential increase in new business lending. Deposits also significantly increased year-on-year by 16.2%. STB has expanded its capital position through the issuance of £90m tier 2 capital bonds, which is now complete. The augmented capital will provide the bank with growth opportunities in its lending activities. Management states that STB is trading in line with expectations and remains confident in delivering on FY23 and medium-term targets as well as improving its cost income ratio by the end of the year. We maintain our estimates for FY23 and FY24 and highlight that STB should be trading at c 0.45x price-to-book value (P/BV), based on our FY24 estimates, to be fairly valued compared to peers. STB currently trades at a P/BV of 0.31x.

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2021A 148.9 N/A 55.9 242.6 2.6 N/A
2022A 169.6 N/A 39.0 154.1 4.1 N/A
2023E 189.3 N/A 44.4 167.0 3.7 N/A
2024E 204.8 N/A 52.0 200.1 3.1 N/A



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