Secure Trust Bank - Edison Group

Overview
Price performance
Financials
Research
Thematics

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

06.02.24

Secure Trust Bank — FY23 underlying PBT broadly maintained

Financials |
Update

21.11.23

Secure Trust Bank — V12 Retail Finance to support refreshed targets

Financials |
Update

04.09.23

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

Financials |
Flash note

19.05.23

Secure Trust Bank — Positioned for strong growth in FY23

Secure-Trust-Bank_resized

Sector

Financials

Equity Analyst

Managing Director, Financials and Investment Trusts

Associate Analyst, Financials

Key Management

David McCreadie

CEO
Phil Clark

Investor relations
Rachel Lawrence

CFO

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	1.5	(1.4)	2.4
Relative	0.6	(4.4)	2.8
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	2.9	N/A
2022A	169.6	N/A	39.0	174.7	3.9	N/A
2023E	186.5	N/A	41.7	154.9	4.5	N/A
2024E	221.8	N/A	55.0	211.4	3.3	N/A

Research

Flash note

Financials

17.05.22

Secure Trust Bank — Strong loan momentum in Q122

Outlook

Financials

07.04.22

Secure Trust Bank — FY21 earnings beat with momentum

Financials

Update

Secure Trust Bank — Solid interim results

Flash note

Financials

14.03.22

Secure Trust Bank — Selling debt purchase loan book

Flash note

Financials

14.01.22

Secure Trust Bank — Pre-close shows loan growth ahead of forecasts

Update

Financials

30.11.21

Secure Trust Bank — New tech and lower impairments

Flash note

Financials

09.11.21

Secure Trust Bank — Capital markets day optimism

Flash note

Financials

21.10.21

Secure Trust Bank — Momentum building in Q3

Update

Financials

11.08.21

Secure Trust Bank — Good news as flagged

Flash note

Financials

26.07.21

Secure Trust Bank — Drawing the line under mortgages exit

Flash note

Financials

14.07.21

Secure Trust Bank — Upbeat pre-close interims update

Flash note

Financials

17.05.21

Secure Trust Bank — Benign Q1 trading update

Outlook

Financials

09.04.21

Secure Trust Bank — Solid FY20, ready for growth

Update

Financials

22.01.21

Secure Trust Bank — Reassuring pre-close

Flash note

Financials

06.01.21

Secure Trust Bank — CEO change in seamless transition

Update

Financials

28.10.20

Secure Trust Bank — Upbeat update

Outlook

Financials

25.08.20

Secure Trust Bank — Resilient numbers

Update

Financials

14.05.20

Secure Trust Bank — Caution after a fine 2019

Flash note

Financials

27.03.20

Secure Trust Bank — Guidance and final 2019 dividend suspended

Update

Financials

15.01.20

Secure Trust Bank — Positive pre-close

Update

Financials

17.10.19

Secure Trust Bank — A reassuring trading update

Update

Financials

09.08.19

Secure Trust Bank — Momentum maintained

Update

Financials

21.05.19

Secure Trust Bank — Upbeat trading update

Update

Financials

01.04.19

Secure Trust Bank — Positive and ready for growth

Update

Financials

18.01.19

Secure Trust Bank — Reassuring update

Update

Financials

18.10.18

Secure Trust Bank — Positive trading update

Update

Financials

15.08.18

Secure Trust Bank — Tangible evidence of repositioning

Update

Financials

12.04.18

Secure Trust Bank — Asset growth set to flow through to earnings

Update

Financials

23.01.18

Secure Trust Bank — Controlled growth

Update

Financials

29.08.17

Secure Trust Bank — Progressing with a prudent approach

Outlook

Financials

31.03.17

Secure Trust Bank — Ready for the next stage

Update

Financials

19.01.17

Secure Trust Bank — Update 19 January 2017

Update

Financials

08.11.16

Secure Trust Bank — Update 8 November 2016

Update

Financials

02.08.16

Secure Trust Bank — Update 2 August 2016

Review

Financials

16.06.16

Secure Trust Bank — Update 16 June 2016

Outlook

Financials

26.04.16

Secure Trust Bank — Update 26 April 2016

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