REG - Secure Trust BankPLC - Q3 2023 Trading Update

Secure Trust BankAnnouncement

08/11/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231108:nRSH7043Sa&default-theme=true

RNS Number : 7043S  Secure Trust Bank PLC  08 November 2023

PRESS RELEASE

Secure Trust Bank PLC

LEI: 213800CXIBLC2TMIGI76

8 November 2023

For immediate release

SECURE TRUST BANK PLC

 

Q3 2023 Trading Update

Positive momentum continues

 

Secure Trust Bank PLC ("Secure Trust Bank", "STB" or the "Group"), a leading
specialist lender, is pleased to announce its trading update for the third
quarter ended 30 September 2023, with ongoing momentum from the Group's
Optimising for Growth strategic priorities.

 

The net loan book continued to grow and the Group continues to trade in line
with management's expectations on an underlying basis. Management has
increased the expected annualised savings to be delivered from Project Fusion,
the Group's cost optimisation programme, to £5m by the end of 2024.

 

Highlights

 

                       Q3 2023     Q2 2023     Change  Q3 2022     Change
 Net lending           £3,212.2m   £3,158.5m   1.7%    £2,813.4m   14.2%
 New business lending  £578.7m     £624.0m     -7.3%   £502.1m     15.3%
 Deposits              £2,717.1m   £2,648.9m   2.6%    £2,349.2m   15.7%

 

Net lending

The customer loan book grew by 1.7% in the quarter and 14.2% compared to Q3
2022. Strong growth in the quarter of 16.4% was delivered by Commercial
Finance as leads were converted to new facilities. Real Estate Finance lending
was consistent with Q2 2023. Consumer Lending grew by 1.1% in the quarter and
23.2% compared to Q3 2022.

 

New business

Total new business lending decreased by 7.3% in the quarter and increased by
15.3% compared to Q3 2022.  Business Finance delivered 29.8% growth on Q2
2023 and 62.5% growth on Q3 2022.  Following a record Q2 2023, Consumer
Finance recorded reduced new business lending volumes in the quarter as
spending by consumers softened.

 

Deposits

The Group has continued to raise deposits in a market that has seen a rise in
the cost of retail funding. Customer deposits were 2.6% higher at the end of
the quarter and 15.7% higher than Q3 2022.

 

David McCreadie, Chief Executive Officer, said:

 

"The Group has continued to grow in the third quarter and demonstrated the
diversity of its business model with Business Finance contributing its highest
quarterly new business volumes in over a year.  Our positive momentum
continues, given our strength in specialist markets and we remain on track to
achieve our medium term targets, including our plan to deliver £4m in
annualised cost savings this year rising to £5m in 2024.

 

The continuing fall in inflation is welcome. We may have seen the high point
of interest rates as a result, although the current rate environment has
resulted in demand softening more recently.   The impacts of the recent high
inflationary environment may not have materialised fully yet and so we
continue to monitor our markets and customer portfolios closely. We will
continue to support our customers and trading partners as required.

 

We are holding our second Capital Markets Day today which will focus on the
strengths of our V12 Retail Finance business and demonstrate the pathway to
delivery of the Group's medium term targets."

 

The Group has released a separate announcement relating to the Capital Markets
Day.

 

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 / Angus Murphy (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: +44 (0)7591 760844

 

The person responsible for the release of this announcement on behalf of STB
is Mark Stevens, 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 858
employees (full‐time equivalent) as at 30 September 2023. The Group's
diversified lending portfolio currently focuses on two sectors:

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

(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, One Arleston Way, Solihull, B90 4LH.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTNKOBNFBDDNDK