REG - Secure Trust Bank Arbuthnot Banking - Interim Results <Origin Href="QuoteRef">ARBB.L</Origin> <Origin Href="QuoteRef">STBS.L</Origin>
25/07/2015 09:41
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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."
This announcement, together with the associated analyst presentation, is
available on
www.securetrustbank.com/investor-relations/results-presentations.
Enquiries:
Secure Trust Bank PLCSir Henry Angest, Non-Executive Chairman Andrew Salmon, Non-Executive Director Paul Lynam, Chief Executive OfficerNeeraj Kapur, Chief Financial Officer David Marshall, Director of Communications Tel: 020 7012 2400 Tel: 0121 693 9100 Tel: 020 7012 2400
Canaccord Genuity Limited (Nominated Adviser) Sunil Duggal Tel: 020 7665 4500
Canaccord Genuity Limited (Joint Broker) Roger Lambert Tel: 020 7523 8000
Stifel Nicolaus Europe Limited (Joint Broker)Robin MannGareth Hunt Tel: 020 7710 7479
Bell Pottinger Ben Woodford Dan de Belder Tel: 020 3772 2566
Chairman's statement
Secure Trust Bank PLC has achieved a new milestone, a billion pound company in
total assets. It continues to execute its strategic plan and in so doing is
maintaining good growth in customer lending and profits. The profit before tax
for the first half of 2015 of £16.0m is up 40% on the same period in 2014.
We continue to manage the Bank's balance sheet on a prudent basis.
Notwithstanding the significant growth in customer lending our funding and
capital positions remain strong and our gross leverage ratio is well in excess
of regulatory requirements and modest compared to the larger banks.
In isolation the UK's macroeconomic environment remains benign and provides
opportunities of growth to a strongly capitalised and well-funded bank. GDP
continues to grow, record numbers of people are in employment, inflationary
pressures are low, real wages are growing. This said there are risks we need
to be mindful of. US growth seems to be gaining momentum which may increase
upward pressure on interest rates. Far East financial markets are fragile and
there are significant uncertainties in the Eurozone. We will, as ever,
continue to exercise due caution but in overall terms we are, on balance,
optimistic about the future and expect to see continued growth in the business
in the second half of 2015.
I would like to take this opportunity, on behalf of my Board, to thank all of
our employees for their professionalism, commitment and hard work that is
helping us to achieve strong growth and consistently high levels of customer
satisfaction.
As a result of the strong first half performance the Board proposes to pay an
interim dividend of 17p per share (Interim 2014 : 16p) in respect of the six
months ending 30 June 2015, representing a 6% increase on the prior year. This
will be paid on 18 September 2015 to shareholders on the register as at 21
August 2015.
Chief Executive's statement
I am very pleased to report further strong progress across the Secure Trust
Bank Group during the first half of 2015.
We have achieved record levels of profitability for a first half period
notwithstanding a significant investment in the creation and development phase
of our SME division. We have not compromised our prudent risk or balance sheet
management principles. Customer satisfaction levels remain high as measured by
the independent FEEFO customer feedback forum and the continued growth in the
size of the customer base is encouraging.
The ongoing demand for consumer finance products and the strong traction being
achieved by the SME operations means that we expect to see further growth in
the business in the second half of 2015.
Disciplined management of the balance sheet and cost base
The Bank's capital and funding positions remain robust.
Ahead of our entry into SME lending the Bank undertook a significant capital
raising exercise in July 2014. The increased capital resources and the very
strong capital generation arising from our profitability has enabled us to
grow our customer lending by 90% over the last year, whilst maintaining
healthy capital ratios, with capacity for further lending growth. Our Common
Equity Tier one ratio was 15.0% as at 30 June 2015 compared to 13.2% for the
same date last year. Our overall leverage ratio was 11.9% (2014 : 10.4%).
Secure Trust Bank has continued to fund its lending activities primarily from
customers' deposits. Our loan to deposit ratio was 102% at 30 June 2015 which
was the same as at 31 December 2014. Given the overall growth in the balance
sheet, usage of the Funding for Lending Scheme has increased modestly from
£16m to £26m, albeit this remains a nominal 3% of total lending balances. We
continue to have no reliance for funding from wholesale or interbank markets.
The Bank has continued broadly to match fund its customer lending with
customer deposits. This strategy seeks to mitigate maturity transformation and
interest basis risks. Customer demand for our deposit products remains strong
and we are very pleased to note that the majority of customers with maturing
medium term savings bonds choose to reinvest their funds into deposit products
with us.
The Bank's operational costs continue to be tightly controlled. Investors
appreciate that in the short term, metrics such as cost to income ratios are
impacted by the investments being made in our de novo business operations such
as Real Estate Finance, Asset Finance and Invoice Finance. As a whole, our SME
activities have yet to achieve the desired critical mass. Therefore as
expected, whilst they scale up, our profit growth is lower than would be the
case had we not made these longer term strategic investments.
Lending activities
This time last year we said that our Board was of the view that demands for
Consumer and SME finance would continue to grow as the UK economy increases in
size. Our strategy was to continue to grow our existing consumer finance
lending activities whilst developing SME business lines initially focused on
Invoice Finance, Asset Finance and Real Estate Finance activities. I am
pleased to note that over the last twelve months we have, as anticipated, seen
strong demand for consumer and SME finance. The volume of new loans written
in H1 2015 was £425.7m representing a 111% increase on the £201.3m for the
same period last year. This has led to growth in customer lending to £852.3m
being a 90% increase over the same period in 2014.
The portfolio continues to be robustly controlled and we have not compromised
our acceptance criteria or lending standards to achieve net growth. This
approach has, in part, contributed to impairments remaining at levels below
our expectations when we originated the loans. As the overall portfolio
matures we expect to see, and have priced for, higher impairment levels than
we are currently experiencing.
Total lending balances, net of provisions, have increased to £852.3m at 30
June 2015. This represents growth of £404.5m since 30 June 2014 and 37% growth
from the 31 December 2014 position of £622.5m.
Motor Finance balances have grown to £152.3m from £127.8m a year ago and
£137.9m as at 31 December 2014 representing 19% and 10% growth respectively.
Personal unsecured lending balances, including Everyday Loans, have grown to
£188.9m from £169.5m a year ago and £181.4m as at 31 December 2014
representing 11% and 4% growth respectively.
Retail Point of Sale balances have grown to £195.4m from £134.3m a year ago
and £156.3m as at 31 December 2014 representing 45% and 25% growth
respectively.
Overall SME lending growth has exceeded our expectations driven by the Real
Estate and Asset Finance products. Being a longer term relationship
proposition, the Invoice Finance lending volumes are, as expected, taking time
to build.
As at 30 June 2015 Real Estate Finance lending balances have grown to £266.3m
from £12.5m a year ago and £133.7m as at 31 December 2014 representing 2030%
and 99% growth respectively.
As at 30 June 2015 Asset Finance lending balances have grown to £30.4m from
£nil a year ago and £4.5m as at 31 December 2014 representing 575% growth
since the year end.
As at 30 June 2015 Invoice Finance lending balances have grown to £15.7m from
£nil a year ago and £5.0m as at 31 December 2014 representing 214% growth
since the year end.
Fee based services
The OneBill service remains closed for new business. Customer numbers continue
to reduce in line with management expectations and ended the period at
21,977.
The Payments Service Regulator which came into existence on 1 April 2015 is
conducting a review of the control of the UK payments infrastructure and the
impact this might have on normal competitive forces. Concurrently the
Competition and Markets Authority is undertaking a full market investigation
into the Personal and Business current account markets. Pending the outcome of
these reviews we have focused management attention elsewhere rather than on
our basic bank account product. The Current Account product does not make a
meaningful contribution to the Bank's profits.
Strong customer relationships and ethics
Our ongoing focus on providing straightforward transparent banking solutions
remains very popular with customers. Customer satisfaction levels, as measured
by FEEFO, are consistently in the 90-100% satisfaction levels. Customer
numbers continue to grow and are over 24% higher than this time last year at
486,805 (2014 : 391,610).
During the period we have achieved a number of external awards and
accreditations. These include reaffirmation of the Customer Service Excellence
Award (an award introduced in 2010 by the Cabinet Office to replace the Kite
Mark). We are the only bank to hold this award. We were also named as
Sub-Prime Lender of the year at the 2015 Motor Finance awards.
Diversification strategy progressing
Our stated ambition is to shift, over time, the majority of the Banks' balance
sheet lending into secured lending assets whilst continuing to grow our
unsecured consumer finance portfolio. This plan is being successfully
executed. As at 30 June 2015 37% of the lending portfolio is secured by UK
assets and our unsecured lending balances at £539.9m are 24% higher than this
time last year. In order to ensure that our growth continues to be
professionally and prudently managed we have maintained our investment in new
senior management and the infrastructure capabilities of the Bank.
We remain open to the possibility of competing in the UK mortgage market and
have hired a team to undertake a detailed study to establish if we can build a
sustainably viable proposition in this market alongside some of the other
challenger banks. In particular we have been awaiting the outcome of the first
budget of the new government and are now factoring the announcement in respect
of tax relief changes on buy to let mortgages into our deliberations.
Recent personal taxation changes have also served to increase the importance
of the Cash ISA market. Setting this in context according to a Financial
Conduct Authority report in Q1 2015, the Cash ISA market is estimated to be
£185bn in size compared to the Fixed Rate Bond market at £145bn. STB does not
currently have a Cash ISA proposition so we are progressing plans to build a
capability to offer Secure Trust Bank ISAs in the market. This will help to
diversify our funding sources and potentially reduce these costs noting the
rates offered on Cash ISA products are typically 25% lower than on non-ISA
products.
Outlook
Our strategy to broaden our distribution channels and products has borne fruit
with strong organic demand from a wide variety of customers. This is driving
robust growth in lending balances and profits. Investors will appreciate that
the initial investment will result in a period of lower potential profits
until the SME businesses achieve critical mass. I am pleased to note that the
progress to attain critical mass is in line with our expectations.
Perhaps as a consequence of the transition of regulatory responsibilities from
the Office of Fair Trading to the Financial Conduct Authority we have seen a
marked increase in the number of business and portfolio acquisition
opportunities. We have reviewed a number of these in the first half of 2015
but have concluded that these fall outside of our credit or regulatory risk
appetites or the vendors have unrealistic price expectations. This said, we
continue to explore a wide range of external opportunities which may allow us
to accelerate our growth plans.
The newly elected Conservative Government's manifesto included an emphasis on
fostering competition in UK banking markets. In my view, fundamentally the
only way to address the 'too big to fail' situation is by the Government
taking decisive steps to create a truly level playing field that allows the
well capitalised smaller banks, who are generally free of legacy issues, to
compete on a like for like basis with the dominant incumbents. In these
circumstances consumers and businesses would get much greater choice and it is
likely that standards of behaviour across the industry would also be driven
higher by competitive forces. In my opinion vigorous and diverse competition
is likely to be much more successful in driving innovation and forcing up
standards compared to a raft of extensive additional regulation. This
ironically will be disproportionately expensive for the smaller banks to
implement even though they are not the primary target of the new rules. If
decisive action is not taken that allows the smaller banks to take market
share from the incumbents the largest banks will continue to dominate the UK
market and the taxpayer will remain exposed to the potential of having to bail
out the 'too big to fail' banks. In my capacity as the Chairman of the British
Bankers Association Challenger Banks' Panel I continue to lobby government in
respect of these critically important issues. Any decisive action taken would
allow the smaller banks to further increase the provision of credit to UK
consumers and businesses and therefore support the economy in continuing to
grow.
With the economic recovery underway and a business friendly government
recently elected, we believe we are well positioned to make further positive
progress and we look forward to the future with confidence.
Consolidated statement of comprehensive income
Six months ended 30 June
2015 2014
Note £million £million
Interest receivable and similar income 64.2 41.6
Interest expense and similar charges (9.8) (7.2)
Net interest income 54.4 34.4
Fee and commission income 9.4 11.2
Fee and commission expense (1.6) (1.8)
Net fee and commission income 7.8 9.4
Operating income 62.2 43.8
Net impairment losses on loans and advances to customers (11.2) (6.4)
Operating expenses (35.0) (26.0)
Profit before income tax 2 16.0 11.4
Income tax expense (3.1) (3.0)
Profit for the period 12.9 8.4
Other comprehensive income, net of income tax:
Cash flow hedging reserve
- Net amount transferred to profit or loss - 0.4
Other comprehensive income for the period, net of income tax - 0.4
Total comprehensive income for the period 12.9 8.8
Profit attributable to:
Equity holders of the Company 12.9 8.4
Total comprehensive income attributable to:
Equity holders of the Company 12.9 8.8
Earnings per share for profit attributable to the equity holders of the Company during the period
(expressed in pence per share):
Basic earnings per share 3 70.8 53.6
Diluted earnings per share 3 69.5 51.4
Consolidated statement of financial position
At 30 June
2015 2014
Note £million £million
Assets
Cash and balances at central banks 100.4 -
Loans and advances to banks 4 21.2 102.4
Loans and advances to customers 852.3 447.8
Debt securities held-to-maturity 5 7.0 -
Property, plant and equipment 8.7 4.9
Intangible assets 7.5 9.2
Deferred tax assets 0.2 0.6
Other assets 5.5 4.5
Total assets 1,002.8 569.4
Liabilities and equity
Liabilities
Deposits from customers 835.1 476.8
Current tax liabilities 5.6 1.4
Deferred tax liabilities - 0.6
Other liabilities 33.7 27.3
Total liabilities 874.4 506.1
Equity attributable to owners of the Company
Share capital 7.3 6.3
Share premium 79.3 28.2
Retained earnings 41.6 28.6
Revaluation reserve 0.2 0.2
Total equity 128.4 63.3
Total liabilities and equity 1,002.8 569.4
Consolidated statement of changes in equity
Share capital Share premium Revaluation reserve Cash flow hedging reserve Retained earnings Total
£million £million £million £million £million £million
Balance at 1 January 2015 7.3 79.3 0.2 - 38.1 124.9
Total comprehensive income for the period
Profit for the six months ended 30 June 2015 - - - - 12.9 12.9
Total comprehensive income for the period - - - - 12.9 12.9
Transactions with owners, recorded directly in equity
Contributions by and distributions to owners
Final dividend relating to 2014 - - - - (9.5) (9.5)
Charge for share based payments - - - - 0.1 0.1
Total contributions by and distributions to owners - - - - (9.4) (9.4)
Balance at 30 June 2015 7.3 79.3 0.2 - 41.6 128.4
Share capital Share premium Revaluation reserve Cash flow hedging reserve Retained earnings Total
£million £million £million £million £million £million
Balance at 1 January 2014 6.3 28.2 0.2 (0.4) 27.3 61.6
Total comprehensive income for the period
Profit for the six months ended 30 June 2014 - - - - 8.4 8.4
Other comprehensive income, net of income tax
Cash flow hedging reserve
- Net amount transferred to profit or loss - - - 0.4 - 0.4
Total other comprehensive income - - - 0.4 - 0.4
Total comprehensive income for the period - - - 0.4 8.4 8.8
Transactions with owners, recorded directly in equity
Contributions by and distributions to owners
Final dividend relating to 2013 - - - - (7.4) (7.4)
Charge for share based payments - - - - 0.3 0.3
Total contributions by and distributions to owners - - - - (7.1) (7.1)
Balance at 30 June 2014 6.3 28.2 0.2 - 28.6 63.3
Consolidated statement of cash flows
Six months ended 30 June
2015 2014
£million £million
Cash flows from operating activities
Profit for the six months 12.9 8.4
Adjustments for:
Income tax expense 3.1 3.0
Depreciation of property, plant and equipment 0.3 0.2
Amortisation of intangible assets 1.3 1.2
Loss on sale of property, plant and equipment - 0.1
Impairment losses on loans and advances 11.2 6.4
Cash flow hedging reserve transferred to profit or loss - 0.4
Equity settled share based payment transactions 0.1 0.3
Cash flows from operating profits before changes in operating assets and liabilities 28.9 20.0
Changes in operating assets and liabilities:
- net decrease in loans and advances to banks 24.3 7.8
- net increase in loans and advances to customers (241.1) (63.2)
- net (increase)/decrease in other assets (0.2) 3.6
- net decrease in amounts due to banks (15.9) (0.1)
- net increase in deposits from customers 226.7 40.2
- net increase in other liabilities 4.5 1.5
Income tax paid (0.6) (1.5)
Net cash inflow from operating activities 26.6 8.3
Cash flows from investing activities
Purchase of property, plant and equipment (0.9) (0.2)
Purchase of computer software (0.6) (0.5)
Net cash outflow from investing activities (1.5) (0.7)
Cash flows from financing activities
Dividends paid (9.5) (7.4)
Net cash outflow from financing activities (9.5) (7.4)
Net increase in cash and cash equivalents 15.6 0.2
Cash and cash equivalents at 1 January 106.0 90.0
Cash and cash equivalents at 30 June 121.6 90.2
Notes to the consolidated financial statements
1. Operating segments
The Group is organised into six main operating segments, which consist of the
different products available, disclosed below:
1) Personal Lending - Unsecured consumer loans sold to customers via brokers
and affinity partners.
2) Motor Finance - Hire purchase agreements secured against the vehicle being
financed.
3) Retail Finance - Point of sale unsecured finance for in-store and online
retailers.
4) Current Account and OneBill - The current account comes with a prepaid card
to enable effective control of personal finances, whilst OneBill is an account
designed to aid customers with their household budgeting and payments
process.
5) Business Finance - Real Estate Finance and Asset Finance, secured on the
properties or assets financed. This segment also includes the Commercial
Finance activities, the most significant of which are invoice discounting and
invoice factoring.
6) Debt Collection - Collection of debts on a contingent collections basis on
behalf of a range of clients as well as selective investments in purchased
debt portfolios.
Management review these segments by looking at the income, size and growth
rate of the loan books, impairments and customer numbers. Except for these
items no costs or balance sheet items are allocated to the segments.
Consumer Finance
Personal Lending Motor Finance Retail Finance Current Account and OneBill Business Finance Debt Collection and other Group Total
Six months ended 30 June 2015 £million £million £million £million £million £million £million
Interest receivable and similar income 27.0 15.8 11.6 - 8.8 1.0 64.2
Fee and commission income 1.1 - 0.7 5.7 0.4 1.5 9.4
Revenue from external customers 28.1 15.8 12.3 5.7 9.2 2.5 73.6
Net impairment losses on loans and advances to customers 5.5 3.1 2.3 - 0.3 - 11.2
Loans and advances to customers 188.9 152.3 195.4 0.3 312.4 3.0 852.3
Consumer Finance
Personal Lending Motor Finance Retail Finance Current Account and OneBill Business Finance Debt Collection and other Group Total
Six months ended 30 June 2014 £million £million £million £million £million £million £million
Interest receivable and similar income 20.7 12.6 7.9 - 0.3 0.1 41.6
Fee and commission income 2.9 - 0.3 6.0 0.1 1.9 11.2
Revenue from external customers 23.6 12.6 8.2 6.0 0.4 2.0 52.8
Net impairment losses on loans and advances to customers 4.7 1.3 0.4 - - - 6.4
Loans and advances to customers 169.5 127.8 134.3 0.3 12.5 3.4 447.8
The "Debt Collection and other" segment above includes other segments which
are individually below the quantitative threshold for separate disclosure and
fulfils the requirement of IFRS 8.28 by reconciling operating segments to the
amounts reported in the financial statements.
As interest, fee and commission and operating expenses are not aligned to
operating segments for day-to-day management of the business and cannot be
allocated on a reliable basis, profit by operating segment has not been
disclosed.
All of the Group's operations are conducted wholly within the United Kingdom
and geographical information is therefore not presented.
2. Underlying profit reconciliation
The profit before tax as reported in the Consolidated Statement of
Comprehensive Income can be reconciled to the underlying profit for the year
as follows:
Six months ended 30 June
2015 2014 Variance
£million £million £million
Profit before tax 16.0 11.4 4.6
Costs of acquisition - 0.2
Fair value amortisation 1.0 2.7
Share based incentive schemes 0.3 0.8
Net ABG management recharges 0.1 0.1
Underlying profit before tax 17.4 15.2 2.2
Underlying tax (3.4) (3.6) 0.2
Underlying profit after tax 14.0 11.6 2.4
Underlying basic earnings per share (pence) 76.8 73.8 3.0
3. Earnings per ordinary share
Basic
Basic earnings per ordinary share are calculated by dividing the profit
attributable to equity holders of the parent of £12.88 million (2014: £8.39
million) by the weighted average number of Ordinary Shares in issue during the
period 18,191,894 (2014: 15,648,149).
Diluted
Diluted earnings per ordinary share are calculated by dividing the profit
attributable to equity holders of the parent of £12.88 million (2014: £8.39
million) by the weighted average number of Ordinary Shares in issue during the
period, as noted above, as well as the number of dilutive share options in
issue during the period.
The number of dilutive shares in issue at the period-end was 345,805, being
based on the number of options granted of 460,419, the exercise price of £7.20
per option and the average share price during the period from 1 January to 30
June 2015 of £28.92. (2014: 673,328 dilutive shares in issue).
4. Loans and advances to banks
Included within loans and advances to banks are amounts placed with Arbuthnot
Latham & Co., Limited, a related company, of £10.0 million (31 December 2014:
£20.0 million; 30 June 2014: £36.2 million).
5. Debt securities held-to-maturity
On 30 June 2014 £59.2 million of debt securities held-to-maturity were
included in loans and advances to banks.
6. Basis of reporting
The interim financial statements have been prepared on the basis of accounting
policies set out in the Group's 2014 Annual Report and Accounts as amended by
standards and interpretations effective during 2015 and in accordance with
IAS34 'Interim Financial Reporting'. The Directors of the Company do not
consider the fair values of the assets and liabilities presented in these
interim financial statements to be materially different from their carrying
values.
The statements were approved by the Board of Directors on 20 July 2015 and are
unaudited. The interim financial statements will be posted to shareholders
and copies may be obtained from The Company Secretary, Secure Trust Bank PLC,
One Arleston Way, Solihull, West Midlands, B90 4LH.
This information is provided by RNS
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