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

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