Secure Trust Bank (LSE: STB)

Last close As at 24/05/2024

GBP8.06

22.00 (2.81%)

Market capitalisation

GBP154m

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

View More
Secure-Trust-Bank_resized

Sector

Financials

Equity Analyst

Rob Murphy

Managing Director, Financials and Investment Trusts

Key Management

  • David McCreadie

    CEO

  • Phil Clark

    Investor relations

  • Rachel Lawrence

    CFO

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 14.8 13.2 27.9
Relative 10.6 4.7 19.1
52 week high/low 808.0p/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 3.4 N/A
2022A 169.6 N/A 39.0 174.7 4.6 N/A
2023E 186.5 N/A 41.7 154.9 5.2 N/A
2024E 221.8 N/A 55.0 211.4 3.8 N/A

Thematics

thematic

Financials

South African life assurers: Where is the growth?

thematic

Financials

IFRS 17: Impact on life assurance companies

thematic

Financials

Crypto, are you dead yet?

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free