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STB Secure Trust Bank

Discussion in 'General Share Chat (STB)' started by Mongoose82, Jun 16, 2016.

  1. Mongoose82

    Mongoose82 A Legendary Member

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    "Shareholders in Arbuthnot Banking Group (ARBB) have approved the sale of shares in Secure Trust Bank (STB) that will leave the former parent as a sub-20% shareholder in the group. STB already has significant capital headroom to accommodate strong organic loan growth following the sale of Everyday Loans Group. Its plan to seek a Main Market listing will enable it to appeal to a broader investor audience, leaving it better placed to consider share issuance, providing greater flexibility to pursue a wider range of strategic options. This comes at a time of rapid growth and proliferation of contenders among specialist lenders and challenger banks."

    Edison note out this morning: https://www.research-tree.com/company/GB00B6TKHP66
     
  2. Groucho

    Groucho Member

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  3. Groucho

    Groucho Member

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    15 January 2020

    For immediate release

    Secure Trust Bank PLC

    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 2019 scheduled for 26 March 2020.

    STB has continued to progress its strategic plan with strong control over the cost of risk and continued investment in the motor platform. The Group has delivered further revenue and loan book growth in the second half. This is despite the flat lining of GDP growth last autumn which dampened demand for consumer and house building finance across the sector. STB is pleased with its performance against this backdrop and the full year results are expected to be in line with management's and the market's expectations.

    The Group has not compromised its lending or pricing disciplines to drive balance sheet growth and will continue to be selective in respect of new lending.

    In December 2019 the BoE announced an increase in the countercyclical capital buffer from 1% of risk weighted assets to 2%, with effect from December 2020 and its intention to consult on offsetting this increase via reductions in variable Pillar 2A add ons, to ensure the levels of capital in the system stay broadly unchanged.

    The Group is looking ahead to 2020 with cautious optimism. The PMI survey results published in early January indicate a positive reaction to the General Election result. This is consistent with a recovery in UK equity prices and increased market interest in residential and some classes of commercial property assets.

    The Group enters 2020 with strong new business pipelines, healthy capital and liquidity positions and remains well placed to pursue its strategic priorities and envisages no material change for its guidance for 2020.
     
  4. Groucho

    Groucho Member

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    F9643071-BD88-41D1-B26B-406BACF8BCF2.jpeg
    City AM 16/01/2020
     
  5. Groucho

    Groucho Member

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  6. Groucho

    Groucho Member

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    PRESS RELEASE

    Thursday 7 May 2020

    For immediate release


    SECURE TRUST BANK PLC


    Audited Final Results for the year ended 31 December 2019


    Continued strong performance in 2019 delivering increased profits


    Secure Trust Bank PLC ("STB", the "Bank" or the "Group") is pleased to announce an 11.5% increase in Group profit before tax to £38.7m for the year ended 31 December 2019.

    Controlled growth in both our Business Finance and Consumer Finance businesses continued to deliver increased profits in 2019. Customer numbers, lending balances and income increased whilst the cost of risk continued to decrease. These factors have driven strong growth in reported and adjusted earnings despite the slowdown in UKeconomic activity in the second half of 2019.

    The first two phases of the Motor Finance transformation programme were successfully completed in 2019. The Group expanded its savings offering with the launch of its fixed term Cash ISA in 2019 and the Access product range developed for launch in 2020. Capital and liquidity positions remain healthy.

    In the light of the COVID-19 outbreak, the Group has implemented contingency plans to ensure the wellbeing of its workforce, the majority of whom are now working from home, while focusing on supporting its customers and business partners, managing risks and safeguarding capital. HM Government's lockdown strategy has led to diminished Consumer Finance new business, with no new Motor Finance lending being written at present and Retail Finance running at circa 50% of normal, supported by demand for sports equipment and consumer electronics such as laptops. Significantly increased impairment charges are likely due to higher unemployment and falls in asset values and will impact the 2020 result. Additional stress testing has been undertaken and is continuing to assess the potential impact of the crisis on capital and liquidity positions, which remain healthy. Assessments to date indicate that the short duration of the loan books helps to maintain capital and liquidity levels above regulatory requirements. Given the uncertain impact of the outbreak on the UK economy, the Group has currently suspended forward guidance for 2020 and has decided not to recommend a final dividend for 2019.

    FINANCIAL HIGHLIGHTS
    · Statutory profit before tax up 11.5% to £38.7m (2018: £34.7m)

    · Adjusted profit before tax of £41.1m (2018: £36.7m), up 12.0%

    · Continued improvement in loan book quality has reduced cost of risk to 1.4% (2018: 1.8%)

    · Healthy common equity tier 1 ratio of 12.7% (2018: 13.8%*) supporting the strong growth in the loan portfolios

    · Total capital ratio of 15.0% (2018: 16.3%*)

    · Operating income £165.5m (2018: £151.6m) up 9.2%

    · Basic earnings per share 168.3p (2018: 153.2p) up 9.9%

    · Adjusted earnings per share 178.6p (2018: 161.8p) up 10.4%

    · Adjusted return on average equity of 13.5% (2018: 13.1%)

    · Total assets £2,682.8m (December 2018: £2,444.3m) up 9.8%

    · No final dividend recommended for 2019 (2019 interim dividend: 20p per share; 2018 total dividend: 83p per share)

    * Note: After accounting for the 2018 dividend, the CET 1 ratio for 2018 is 13.2% and the total capital ratio for 2018 is 15.7%

    OPERATIONAL HIGHLIGHTS
    · Total customer numbers increased by 24.9% to 1,598,256 (2018: 1,279,783)

    · Customer satisfaction scores, as measured by Feefo, continue to be above 90%

    · New Cash ISA products launched in April 2019

    · V12 Vehicle Finance brand launched and first two phases of Motor Transformation Programme implemented

    · Overall loan book £2,450.1m (2018: £2,028.9m) up 20.8%

    · Total annual new business lending volumes grew 12.0% to £1,413.0m (2018: £1,261.9m)

    · Total Consumer Finance balances now exceed £1,200.9m (2018: £990.4m), with Retail Finance balances growing by 15.4% since December 2018 to £688.9m

    · Total Business Finance balances rose to £1,241.6m following continued strong growth in Real Estate Finance and Commercial Finance balances

    · The Commercial Finance invoice financing operation has now funded over £3bn of customer invoices since inception in 2014

    · Customer deposits increased to £2,020.3m (2018: £1,847.7m) up 9.3%

    Lord Forsyth, Chairman, said:

    "2019 was another successful year for the Group with double digit growth in profits before tax delivered for the second successive year. This and a strong start to 2020 would ordinarily see the Board recommend an increased dividend. However we have rapidly entered a period of extreme uncertainty driven by the COVID-19 outbreak and in these exceptional circumstances the Board considered that it was more prudent to preserve capital. Accordingly, the Board is not recommending a final dividend for approval by shareholders at the Annual General Meeting. The Board will keep this under review. The Group has plans in place which seek to mitigate business disruption as far as practical and to continue supporting customers, colleagues and business partners during this unsettling period."

    Paul Lynam, Chief Executive, said:

    "In 2019 we delivered a strong performance across a broad range of customer, staff and financial metrics and delivered 11.5% growth in profit before tax, notwithstanding the marked slowdown of the UK economy in the second half of the year and a substantial fall in used motor car values during the summer. The Group entered 2020 aspiring to deliver double digit profit before tax growth for the third successive year. After the first quarter the group was trading in line with management expectations, despite increasing impairment provisions to recognise the threat of COVID-19. From mid-March we have seen a slowdown in demand for our products, particularly in respect of our Consumer Finance lending. The extent to which this contraction continues will be influenced by any revival in economic activity and our credit risk appetites which will remain cautious. Healthy capital and liquidity positions, combined with the Group's flexible business model, means it is well placed to navigate the current crisis."

    This announcement together with the associated investors' presentation are available on:

    www.securetrustbank.com/results-reports/results-reports-presentations

    Secure Trust BankPLC - Secure Trust Bank PLC Results to 31 December 2019 #STB https://www.voxmarkets.co.uk/rns/announcement/232c3a92-b512-4dd3-90bc-4a6d4213a57b #voxmarkets undefined
     

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