REG - Secure Trust BankPLC - Q1 2024 Trading Update

Secure Trust BankAnnouncement

16/05/2024 07:00

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RNS Number : 6216O  Secure Trust Bank PLC  16 May 2024

16 May 2024

 

SECURE TRUST BANK PLC

 

Q1 2024 Trading Update

Positive start to 2024 and economic outlook improving

 

Secure Trust Bank PLC ("Secure Trust Bank", "STB" or the "Group"), a leading
specialist lender, is pleased to announce its trading update for the first
quarter ended 31 March 2024, with further growth in net lending balances, good
progress on Project Fusion cost savings and trading in line with management
expectations.

 

Highlights

              Q1'24      Q4'23      Change  Q1'23      Change
 Net lending  £3,372.6   £3,315.3   1.7%    £3,013.3   11.9%
 Deposits     £2,921.8   £2,871.8   1.7%    £2,544.6   14.8%

 

Net lending

The net loan book grew by 1.7% in the quarter and 11.9% compared to Q1 2023.
Encouraging growth of 3.8% was achieved by Real Estate Finance in the quarter.
Commercial Finance balances declined in the period reflecting the challenging
market environment.  Balances in Vehicle Finance grew by 1.6% and in Retail
Finance by 1.4%.

 

Deposits

Customer deposits grew by 1.7% in the quarter to support our lending
objectives. Deposit balances were 14.8% higher compared to Q1 2023.

 

David McCreadie, Chief Executive Officer, said:

"The Group continued to grow net lending in the quarter and is trading in line
with management expectations. I am pleased that the positive momentum from
last year has continued and that we have taken another step towards our £4
billion net lending ambition.

We have seen improved lending quality in Retail Finance and continued to
enhance our collections processes in Vehicle Finance. We have identified
further opportunities to streamline our operations and generate additional
cost efficiencies.

With the UK economy returning to growth and the likelihood of interest rate
reductions improving, we remain confident in delivering on our plans for the
full year and our medium term targets."

 

Enquiries:

Secure Trust Bank PLC

David McCreadie, Chief Executive Officer

Rachel Lawrence, Chief Financial Officer

Phil Clark, Investor Relations

Tel: 0121 693 9100

 

Investec Bank plc (Joint Broker)

Bruce Garrow

David Anderson

Maria Gomez de Olea

Tel: +44 (0) 20 7597 5970

 

Shore Capital Stockbrokers (Joint Broker)

Mark Percy (Corporate Advisory)

Guy Wiehahn (Corporate Broking)

Tel: +44 (0)20 7408 4090

Camarco

Ed Gascoigne-Pees, Geoffrey Pelham-Lane, Sean Palmer

securetrustbank@camarco.co.uk (mailto:securetrustbank@camarco.co.uk)

Tel: 07591 760844

 

The person responsible for the release of this announcement on behalf of STB
is Lisa Daniels, Company Secretary.

 

Forward looking statements

This announcement contains forward-looking statements about the business,
strategy and plans of STB and its current objectives, targets and expectations
relating to its future financial condition and performance. Statements that
are not historical facts, including statements about STB's or management's
beliefs and expectations, are forward-looking statements. By their nature,
forward-looking statements involve risk and uncertainty because they relate to
events and depend on circumstances that will occur in the future. STB's actual
future results may differ materially from the results expressed or implied in
these forward-looking statements as a result of a variety of factors. These
include economic and business conditions, risks from failure of clients,
customers and counterparties, market related risks including interest rate
risk, risks regarding market conditions outside STB's control, expected credit
losses in certain scenarios involving forward looking data, operational risks,
legal, regulatory, or governmental developments, and other factors. The
forward-looking statements contained in this announcement are made as of the
date of this announcement, and (except as required by law or regulation) STB
undertakes no obligation to update any of its forward-looking statements.

 

About STB

Secure Trust Bank is an established, well‐funded and capitalised UK retail
bank with a 71 year trading track record. Secure Trust Bank operates
principally from its head office in Solihull, West Midlands, and had 868
employees (full‐ time equivalent) as at 31 December 2023. The Group's
diversified lending portfolio currently focuses on two sectors:

(i)            Business Finance through its Real Estate Finance and
Commercial Finance divisions; and

(ii)           Consumer Finance through its Vehicle Finance and
Retail Finance divisions.

 

Secure Trust Bank PLC is authorised by the Prudential Regulation Authority and
regulated by the Financial Conduct Authority and the Prudential Regulation
Authority.

Secure Trust Bank PLC, Yorke House, Arleston Way, Solihull, B90 4LH.

 

LEI: 213800CXIBLC2TMIGI76

 

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