Secure Trust Bank

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

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

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Sector

Financials

Equity Analyst

Rob Murphy

Managing Director, Financials and Investment Trusts

Neil Shah

Key Management

David McCreadie

CEO
Phil Clark

Investor relations
Rachel Lawrence

CFO

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	9.4	3.2	6.4
Relative	7.9	(3.5)	4.4
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.