Secure Trust Bank PLC is a longstanding established UK bank, having been incorporated in 1954. Its core business is to provide banking services including a range of lending solutions and savings products. The bank operates from its head office in Solihull, West Midlands and had 589 full-time equivalent employees at 30 June 2014. It has been a subsidiary of the Arbuthnot Banking Group since 1985. Visit www.arbuthnotgroup.com for more information on the Arbuthnot Banking Group.

The bank successfully listed on the Alternative Investment Market (AIM) in November 2011 and has increased its portfolio in recent years, acquiring the Everyday Loans Group and the V12 Finance Group in June 2012 and January 2013 respectively and the trade and certain assets of Debt Managers Holdings Ltd in January 2013.

The bank’s diversified lending portfolio focuses on its core products of unsecured personal lending, motor finance and retail finance, whilst it is also now developing lending solutions for the small and medium-sized enterprises (SME) market. It provides current accounts to UK customers who may not be adequately served by other banks and its lending is entirely funded by customer deposits, with no exposure to wholesale funding.

Personal lending

These are fixed rate, fixed term products with loan terms of between 12 and 60 months and advances varying from £500 to £15,000. The acquisition of Everyday Loans in June 2012 has significantly broadened the bank’s reach to a wider market as well as introducing a high street presence.

Motor finance

Motor finance is a multi-channel offering through motor dealerships and brokers. These are fixed rate, fixed term hire purchase agreements which are secured mainly against used cars with finance term periods ranging from 24 to 60 months and a maximum loan size of £15,000. The bank services the majority of the Top 100 UK car dealership groups.

Retail finance

Retail finance offers lending solutions for store and online retailers for fixed rate unsecured loans of up to £25,000 and terms ranging from 6 to 48 months. The bank acquired the V12 Finance Group during 2013; an acquisition which was complementary to the bank’s existing retail finance activities and which has enabled it to integrate its retail lending activities with those of the V12 Finance Group to leverage their market leading point of sale system.

SME finance

This comprises the Real Estate Finance, Commercial Finance and Asset Finance businesses.

Real Estate Finance has built a significant pipeline of predominantly short-term development finance, typically for house building. The new Commercial Finance and Asset Finance businesses are also being developed with proven high quality teams recruited.

Current Accounts

These offer customers a current account with a prepaid card. A monthly fee is charged for the service but customers have the ability to earn rewards at participating retailers. The current account product has undergone progressive enhancements since its introduction.

Savings products

These represent a combination of instant access accounts, notice deposits and deposit bonds with competitive interest rates


http://www.securetrustbank.com/general/about-secure-trust-bank

Trading Update

RNS


RNS Number : 3160U

Secure Trust Bank PLC

15 October 2014






FOR IMMEDIATE RELEASE

15 October 2014



Secure Trust Bank PLC

2014 Third Quarter Trading Update

Secure Trust Bank PLC ("STB" or "Secure Trust Bank") traded strongly during the quarter ending 30 September 2014. Total customer lending balances across the STB Group now exceed £500 million for the first time.

The bank continues to enjoy the favourable conditions in the retail deposits market. It has raised additional two, four and seven year fixed rate deposits which enable it to match broadly the new lending activities and to mitigate the potential impact of interest rates rising faster than the market expects.

Demand for consumer lending, especially in Cycle and Motor Finance, remained healthy and overall new lending business volumes are materially higher than for the same period in 2013. The bank's retail finance division successfully launched its Season Ticket finance offering and will seek to build on this initial success in 2015.

Secure Trust Bank has made significant progress with the development of its plans for SME lending. The Real Estate Finance team, which is staffed by highly experienced bankers with proven property lending expertise, has built up a significant pipeline of good quality new business opportunities. A number of these have been drawn down during the quarter. The lending is mainly short term development financing with prudent loan to value levels. In light of the successes achieved so far, and the future potential, the bank has accelerated its recruitment plans to augment the existing credit risk and relationship management teams.

Secure Trust Bank Commercial Services, the invoice finance division of the bank, was launched as planned on 1st September after a year in development. New business is already being written and interest in our entry to the market has exceeded expectations resulting in further new business opportunities. As a result Secure Trust Bank Commercial Services has brought forward its recruitment plans for additional risk and business development staff and is pleased to note that it is attracting high calibre recruits.

The STB Group's total new lending volumes written during Q3 2014 are over 87% higher than in the same period last year. The loan book has performed in line with the trends reported in the first six months of 2014. Impairment levels remain below the level expected when the loans were originated.

Secure Trust Bank PLC continues to work on a range of organic and external business opportunities.

As a result of the growth in lending balances coupled with continuing lower levels of impairments and firm operational cost control Secure Trust Bank PLC anticipates full year results to be at or above the upper end of market expectations. With the UK economy continuing to recover, inflation remaining subdued, employment levels rising and consumers and businesses feeling more confident Secure Trust Bank believes it is well positioned to sustain its positive progress over the coming period.

Secure Trust Bank: Canaccord Genuity raises target price from 3125p to 3200p keeping a buy recommendation.

Signal Update

Our system’s recommendation today is to STAY LONG. The previous BUY signal was issued on 10/11/2014, 2 days ago, when the stock price was 2,591.0000. Since then STB.L has risen by +3.22%.

Market Outlook

You may relax since our STAY LONG position is secure. The market action does not cast a serious doubt on the wisdom of going long.


http://www.britishbulls.com/SignalPage.aspx?lang=en&Ticker=STB.L

One of the independents tips for 2015 -

We had to have a few safer bets, hence Secure Trust Bank (2835.5p). This will be the year of consolidation among so-called challenger banks. Secure can be one of the winners. It was spun out of Conservative donor Henry Angest’s Arbuthnot Banking Group three years ago at 720p. Today the shares are 2820p but even that quadrupling has not stopped US hedge fund billionaire Steve Cohen building up an 8.5 per cent stake. Secure is likely to be a driver in consolidation and, unlike several of its larger peers, it even pays a dividend.

Final Results
RNS
RNS Number : 8407H
Secure Trust Bank PLC
19 March 2015



SECURE TRUST BANK PLC

Audited Final Results for the year to 31 December 2014

Growth and diversification drives record profits

Secure Trust Bank PLC ("STB" or "the Company") today announces continued strong progress during 2014. An increase in customer lending balances of 59% and growth in overall customer numbers of 22% reflect STB's success in gaining customers who are attracted by the straightforward transparent banking solutions offered. A new record statutory profit before tax figure of £26.1m, an increase of 53% from 2013, evidences another progressive year.

Financial Highlights

· Statutory profit before tax increased by 53% to £26.1m (2013: £17.1m)

· Underlying* profit before tax increased by 32% to £33.3m (2013: £25.2m)

· Operating income increased by 24% to £97.9m (2013: £79.0m)

· Underlying* post-tax return on average equity 29% (2013: 31%)

· Statutory post-tax return on average equity 23% (2013: 21%)

· Reported earnings per share 122.3p (2013: 78.3p)

· Underlying* earnings per share 155.8p (2013: 118.2p)

· Proposed final dividend per share of 52p (2013: 47p)

· Proposed total dividend per share of 68p (2013: 62p)

· Net assets nearly doubled following successful £50m capital raise in July 2014

· Core Tier 1 Capital ratio at year end of 23% (2013: 20%)

· Loan to deposit ratio 102%** (2013: 90%)



Operational Highlights

· Customer lending balances increased by 59% to £622.5m

· Customer deposits increased by 39% to £608.4m. Funding for Lending Scheme (FLS) usage remained unchanged at £16m

· Customer numbers grew 22% to 429,507

· Impairments have continued to be lower than the level expected at origination

· Renewal of Customer Service Excellence Award, introduced by the Cabinet Office in 2010 to replace the Kite Mark

· Renewal of Fairbanking Foundation 4 star mark in respect of the current account product

· Strong contribution from consumer lending activities

· SME division established and now operational in Asset Finance, Invoice Finance and Real Estate Finance sectors with substantial pipeline of lending opportunities being progressed





Henry Angest, Chairman, said:

"Secure Trust Bank is today pleased to announce another year of record levels of profits. These are the product of the ongoing diligent execution of our strategic plan. During 2014 we further improved our balance sheet strength and operational capabilities giving us the ability to provide a wider range of products and services to consumer and business customers whilst growing and diversifying our loan book."

Paul Lynam, Chief Executive Officer, said:

"The 60th anniversary of Secure Trust Bank's incorporation represented a record year of profits for the Company. The stated 2014 strategic objectives have been delivered with the controlled growth of the consumer finance businesses and the creation of a new SME lending division, continuing our prudent approach to capital and liquidity. I am particularly pleased with the demand from customers for our services and consistently high levels of customer satisfaction evidenced by a number of external awards and FEEFO*** ratings in the range of 90 - 95%. Our current momentum and the continuing UK economic recovery give us confidence for the current year and beyond."



* Before acquisition costs (2014: £0.2m; 2013: £0.9m), fair value amortisation (2014: £5.3m; 2013: £4.9m), costs associated with share based payments (2014: £1.5m; 2013: £2.2m) and Arbuthnot Banking Group management charges (2014: £0.2m; 2013: £0.1m). All numbers quoted are before tax.

** This excludes the UK Treasury Bills borrowed from the Bank of England under the Funding for Lending Scheme, which have subsequently been pledged as part of a sale and repurchase agreement. If these were included the loan to deposit ratio would be 100%.

*** FEEFO is an independent online tool which allows customers to publicly rate our service standards and record any verbatim comments they want, no matter how candid (www.feefo.com).



-ENDS-

9 Jul Canaccord... 4,000.00 Buy

Interim Results
RNS
RNS Number : 5708T
Secure Trust Bank PLC
21 July 2015





SECURE TRUST BANK PLC



Interim results for the six months to 30 June 2015



Assets exceed £1 billion for the first time and record profits



Secure Trust Bank PLC ("STB", "The Bank" or the "Group") is pleased to announce an increase in profit before tax of 40% for the six months to 30 June 2015. The Bank has traded strongly during H1 2015, whilst continuing to invest heavily in the development of an SME lending division. The Group achieved a record level of profit before tax for a first half period of £16.0m. The positive momentum in customer lending continues, with balances up 90% in the last twelve months, evidencing the successful ongoing execution of the strategic plan.



FINANCIAL HIGHLIGHTS



· Operating income £62.2m (H1 2014: £43.8m)

· Reported profit before tax £16.0m (H1 2014: £11.4m) representing growth of 40%

· Underlying* profit before tax £17.4m (H1 2014: £15.2m) representing growth of 14%.

· Underlying* profit before tax on a like for like** basis was £18.5m representing growth of 22%

· Capital ratios, liquidity and funding positions remain strong

· Underlying* annualised return on average equity 23.6% (H1 2014: 39.8%)

· Earnings per share 70.8p (H1 2014: 53.6p)

· Underlying* earnings per share 76.8p (H1 2014: 73.8p)

· Interim dividend per share of 17p, a 6% increase (H1 2014: 16p)



OPERATIONAL HIGHLIGHTS



· Overall loan book increased to £852.3m; a 90% increase on H1 2014: £447.8m

· Customer deposits increased to £835.1m; a 75% increase on H1 2014: £476.8m

· Total customer numbers increased to 486,805; a 24% increase on H1 2014: 391,610

· High levels of customer satisfaction as measured by FEEFO

· Impairments remain below levels expected at origination

· The SME division progressing as expected with average new lending exceeding £25m per month reflecting the firm control being exerted in the early stages of this division.

· The Consumer finance division has achieved excellent growth driven by Retail Finance and Motor Finance in line with the strategic plan.





* Before acquisition costs (2015: nil; 2014: £0.2m), fair value adjustments (2015: £1.0m; 2014: £2.7m), costs associated with share based payments (2015: £0.3m; 2014: £0.8m) and Arbuthnot Banking Group management charges (2015: £0.1m; 2014: £0.1m). All numbers quoted are before tax and relate to the six months ended 30 June.

** Before the costs of the phantom options granted in March 2015 (2015: £1.1m; 2014: nil).

Sir Henry Angest, Chairman, said:

"Secure Trust Bank continues to demonstrate its ability as a strongly capitalised and well-funded bank to provide straightforward transparent banking solutions to consumers and businesses whilst making attractive returns for shareholders. The diversification into SME activities is proving successful, with lending to UK businesses growing and now exceeding £25m per month. The improving macroeconomic environment and the election of a business friendly government give us confidence for continued growth of the business in the second half of the year."



Paul Lynam, Chief Executive Officer, said:

"Today's results show an ever growing number of customers being very satisfied with our products and services. As a result of the growth in our customer base we have been able to make a significant investment in the creation of an SME division whilst simultaneously achieving a record level of interim profit before tax. We have written record volumes of new loans to consumers and businesses and have not compromised our underwriting standards as reflected in impairment levels being below the levels priced for when the loans were originated.



"The performance and continued growth of our consumer finance portfolios and the strong traction achieved by the new SME division is encouraging. To support our future ambitions we are exploring the potential to broaden our deposit products by entering the cash ISA market and are considering the merits of possible entry into the UK mortgage market. We believe we have continued to position the bank to capitalise on the significant opportunities available to it, in a controlled and prudent manner, and we look forward to the future with confidence."

21 Jul Canaccord... 4,000.00 Buy

2015 Third Quarter Trading Update
RNS
RNS Number : 3075C
Secure Trust Bank PLC
15 October 2015





PRESS RELEASE

For Immediate Release

15 October 2015

SECURE TRUST BANK PLC

2015 Third Quarter Trading Update

The Secure Trust Bank PLC group ("STB" or "Secure Trust Bank" or "the Group") traded strongly during the quarter ended 30 September 2015. Total customer lending balances across the Group now exceed £900 million for the first time.

The Bank continues to enjoy the favourable conditions in the retail deposits market. It has raised additional two, three, four, five and seven year fixed rate deposits which enable it to match broadly the new lending activities and to mitigate interest rate basis risks.

STB has maintained its policy of investing in its system and people capabilities. A new deposit platform capable of offering Cash ISA products is being developed for launch in H2 2016. STB continues to add to its senior and executive team as it seeks to ensure that its ongoing growth is well controlled and sustainable. During Q3 the Bank was pleased to announce the appointment of Ian Henderson into a new role responsible for strategy, personal lending and mortgages. Ian was the CEO of Kensington Mortgages and prior to that the CEO of Shawbrook Bank.

Demand for consumer lending, especially in Retail and Motor Finance, remained healthy and overall new lending business volumes are materially higher than for the same period in 2014. STB does not take residual value risks via operating lease products and does not anticipate being negatively impacted by the emerging emissions scandal impacting Volkswagen. The Bank is monitoring developments closely as it is possible that some manufacturers will find their cost of finance increasing which could dampen their appetite for providing vehicle finance which could present opportunities for the Group.

Secure Trust Bank SME lending activities continue to make positive progress with good levels of new business in Asset Finance, Invoice Finance and Real Estate Finance being written. There has been a notable increase in demand since the General Election and over the summer period. The Group notes HM Government recently committed to build one million new homes during the life of this parliament and feels it is well positioned to help fund proven housebuilders in support of this public policy.

The Group's total new lending volumes written for the first nine months of 2015 are over 93% higher than in the same period last year. The loan book continues to perform well and impairment levels remain below the level expected when the loans were originated.

Secure Trust Bank continues to work on a range of organic and external business opportunities.

As a result of the growth in lending balances coupled with continuing lower levels of impairments STB anticipates the 2015 full year results will be in line with market expectations. With the UK economy continuing to expand, inflation remaining subdued, real wages growing, employment levels rising and consumers and businesses feeling more confident Secure Trust Bank believes it is well positioned to sustain its positive progress over the coming period.



-ENDS-

15 Oct Canaccord... 4,000.00 Buy

Trading statement Fri 13 Jan

Pre-Close Trading Update
RNS
RNS Number : 0806U
Secure Trust Bank PLC
13 January 2017
 
Secure Trust Bank PLC
13 January 2017
Secure Trust Bank PLC ("STB" or the "Group")
Pre-Close Trading Update
 
Secure Trust Bank PLC ("STB" or the "Group") today issues a pre-close trading update ahead of its annual results announcement for the year ended 31 December 2016 scheduled for 23 March 2017.
A year of excellent progress ended with a very busy and productive final quarter.
Trading in the final period of the year has been in line with management's expectations and as a result STB anticipates the full year results will be in line with market expectations. The combined effects of the performance of the continuing operations in  and the one off profit arising from the sale of Everyday Loans means that 2016 is expected to be the tenth successive year when the return on required equity is in the region of 30%. As set out in our interims results, the significant increase in capital arising from the disposal of Everyday Loans results in Group ROE reducing while this capital is re-deployed over time. 
In October 2016, the Group completed the move from AIM to the premium segment of the main market of the London Stock Exchange. Following the step up, after a very long and distinguished period as Chairman, Sir Henry Angest retired as Chairman and was succeeded by Lord Forsyth, an existing independent Non-Executive Director and a very experienced businessman and politician. Sir Henry Angest remains on the Board. Further strengthening and diversification of the Board was achieved in November by the appointment of two new independent Non-Executive Directors, Ann Berresford, a Chartered Accountant with a background in financial services and Victoria Stewart, a well-regarded fund manager.
Given the uncertain economic outlook, STB has continued to focus on growing its business in a prudent manner, in order to maximise shareholder value creation rather than solely focusing on balance sheet scale. To mitigate the potential that weaker economic conditions and higher inflation could potentially lead to future increases in impairments particularly in consumer finance, the Group has tightened credit underwriting standards and increased pricing in these areas during the final quarter. Despite this, net balances in Consumer and SME lending have continued to be successfully grown in line with the strategy to focus on short term Retail Finance, Motor Finance which provides security in the form of the vehicle financed and lower loan to value secured SME lending.
STB's cautious stance differs from a number of other lenders, particularly in the Unsecured Personal Loan ("UPL") market, where a significant proportion of loans are used to consolidate debt. On a number of previous occasions STB has expressed concern about the competitive dynamics in this market and the potential for risk to be mispriced. Recent data from the Bank of England has revealed that consumers are borrowing more than ever on UPL. Despite forecasts of slower economic growth, unemployment rising from an 11 year low and higher inflation, some lenders are now offering medium term UPL at record low interest rate margins. STB regards these dynamics as unsustainable and therefore, having reduced UPL lending in the first half of 2016, intends to cease originating new UPL assets at this juncture. STB has a large amount of experience in the UPL market, having been active since STB's formation in 1952, but at times has elected to reduce its exposure, for instance substantially reducing its UPL activity in 2006-08, in response to an unattractive competitor pricing environment at the time. STB intends to re-enter the UPL market once the risk adjusted yields available become more attractive. This decision is not expected to have a material impact on 2017 earnings.
In December 2016, all UK banks operating on the Standardised Approach to Capital were advised by the Bank of England that lending for residential development should be risk weighted at 150%. This represents a substantial increase on the 100% previously used by many of the smaller banks and will have an impact on capital requirements in the sector. STB will continue to lend to proven house builders, but believes it is well placed to manage the transition to this new higher capital requirement regime given the short duration of the loan book and STB's existing significant capital surplus.  In addition, new lending is being priced based on the new higher capital requirement levels to achieve the Group's target RoE which should mean that the lower RoE back book is relatively quickly replaced by higher priced new originations. The fact that all of the competitors affected by the change will have to reprice their new lending if they wish to sustain their RoE means that STB is not at a competitive disadvantage albeit it does mean the cost of financing the building of houses will increase and there will be less capacity from small banks to lend to support house building in the UK.
The Basel Committee on Banking Supervision had intended to announce the outcome of its consultations in respect of the capital regimes this month. It now appears that it will be March 2017, at the earliest, before any clarification emerges. STB was awaiting the outcome of these deliberations prior to launching its residential owner occupied mortgage product. To avoid further delays the Group intends to launch its mortgage proposition during the first quarter of 2017. STB understands that a key sticking point relates to proposals to introduce a capital floor under the IRB approach used by the largest banks, with some pushing for a floor as high as 75% of the risk weights used under the standardised approach. Such an outcome would largely remove the substantial capital advantages enjoyed by the systemic banks in certain lending classes thereby creating a much more level competitive playing field. This would clearly bode well for smaller banks in the longer term.
Following the successful completion of a number of complex projects in 2016 including the divestment of the subprime unsecured personal loan business of Everyday Loans, the closure of the current account product and the step up from AIM to the main market, STB enters 2017 well placed to pursue its strategic priorities through developing its business model organically and pursuing M&A opportunities. This coupled with the main market premium listing and substantial capital resources, positions the Group well to navigate the evolving economic and regulatory environment and seek to take full advantage of any opportunities that may arise.

Final Results
RNS
RNS Number : 2569A
Secure Trust Bank PLC
23 March 2017
 
PRESS RELEASE 
Thursday 23 March 2017
For immediate release
 
 
SECURE TRUST BANK PLC
 
Audited Final Results for the year to 31 December 2016
 
A year of tremendous progress delivers record profits
 
Secure Trust Bank PLC ("STB", the "Bank" or the "Group") is pleased to announce a record total Group profit after tax of £137.5m for the year to 31 December 2016. This result includes the profit on disposal of the Everyday Loans Group ("ELG") in the first half of the year. The Bank has traded strongly throughout the year, generating underlying profit before tax, which excludes the profit on disposal, of £32.9m which is 23% higher than the previous year. The Group also completed its move to a Premium Listing on the Main Market of the London Stock Exchange in the second half of the year. The record profit has further strengthened the Group's balance sheet and capital ratios, creating capacity for the Group to continue its growth despite the evolving economic environment.
 
FINANCIAL HIGHLIGHTS
 
·    
Total profit after tax £137.5m (2015: £28.7m) up 379%
·    
Underlying profit before tax* £32.9m (2015: £26.7m) up 23%
·    
Statutory profit before tax* £25.0m (2015: £24.8m) up 1%
·    
Common equity tier 1 ratio of 17.4% (2015: 13.6%) up 3.8 percentage points
·    
Operating income* £118.2m (2015: £92.1m) up 28%
·    
Gain on disposal of ELG confirmed at £116.8m
·    
Basic earnings per share 754.1p (2015: 157.8p) up 378%
·    
Underlying earnings per share* 137.7p (2015: 114.3p) up 20%
·    
Ordinary dividends for 2016 of 75p per share including interim dividend of 17p per share paid in September 2016 and proposed final dividend of 58p per share payable in May 2017
·    
Special interim dividend of 165p per share paid in July 2016
 
OPERATIONAL HIGHLIGHTS
 
·    
Business model repositioned with sale of ELG sub-prime unsecured personal loan business,  closure of the basic current account product and cessation of unsecured personal loan originations
·    
Customer deposits increased to £1,151.8m (2015: £1,033.1m) up 11%
·    
Overall loan book increased to £1,321.0m (2015: £960.6m*) up 38%
·    
Total customer numbers increased to 754,968; a 42% increase on 2015: 532,278*
·    
Lending to house builders closely managed with overall LTGDV of portfolio 58%
·    
High levels of customer satisfaction as measured by FEEFO
·    
Investors In People Gold status achieved
·    
Invoice Finance business trading profitably within 2 years of commencement
 
*excluding ELG.
 
Lord Forsyth, Chairman, said:
"The record profit after tax of £137.5m in 2016 enabled Secure Trust Bank to increase shareholder equity from £141.2m to £236.0m whilst distributing £43.1m in dividends. The Bank of England's recent consultation on ways to help create a more level competitive playing field in respect of capital is a possible step forward. Our successful move to the premium segment of the Main Market of the London Stock Exchange and our very strong capital and liquidity resources open up a wide range of strategic options as we enter our 65th year of operation."
 
Paul Lynam, Chief Executive, said:
"This has been a year of tremendous progress for Secure Trust Bank. We have repositioned the actitivies of the Group, almost doubled our capital base, increased our customer numbers by 42%, and delivered excellent levels of customer satisfaction. Having generated total shareholder returns of 247%, including dividends, in the five years since our AIM flotation in late 2011, we are in a strong position to pursue our strategic priorities, as we develop our existing businesses, diversify into new areas and remain open to potential M&A activities."
 

23 Mar
Peel Hunt
2,850.00
Buy
23 Mar
Shore Capital
N/A
Buy

27 Mar
Peel Hunt
2,600.00
Buy