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Currency in GBP
Last close As at 07/06/2023
GBP6.38
▲ 2.00 (0.31%)
Market capitalisation
GBP119m
Secure Trust Bank is a well-established specialist bank addressing niche markets within consumer and business lending.
On the back of a strong Q1 performance, management stated that the company is trading in line with expectations and believes it can still achieve its medium-term targets (return on equity of 14–16%, CET1 ratio of >12% and lending book CAGR of 15%+ by FY25). It is confident in its ability to continue expanding the business in its specialist market segments and the company remains well-positioned to grow its lending balances as it continues to strengthen its partnerships while simultaneously reducing the cost-to-income ratio. We maintain our PBT estimates of £44.4m and £52.0m for FY23 and FY24 respectively.
Managing Director, Financials and Investment Trusts
David McCreadie
CEO
Phil Clark
Investor relations
Rachel Lawrence
CFO
| % | 1M | 3M | 12M |
|---|---|---|---|
| Actual | (1.9) | (20.3) | (51.9) |
| Relative | 0.0 | (17.1) | (51.4) |
| 52 week high/low | 1320.0p/612.0p |
In Q123, new business lending increased 7.2% versus Q122 as Business Finance delivered its strongest quarterly lending result since Q222, and Consumer Finance increased for a fourth consecutive quarter. Net lending exceeded £3bn as the customer loan book increased 17.3% versus Q122. Vehicle Finance and Retail Finance lending increased by 7.3% and 3.5%, respectively. Similarly, Real Estate lending increased by 4.3% as pipeline developments procured in Q422 translated into new business. However, Commercial Finance lending declined slightly in the quarter. STB onboarded £343m in deposits during Q123, bringing the deposit balance to £2.5bn (Q122: £2.2bn).
| 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 | 3.8 | N/A |
| 2024E | 204.8 | N/A | 52.0 | 200.1 | 3.2 | N/A |
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