Secure Trust BankPLC - Q3 2026 Trading Update
PRESS RELEASE
Secure Trust Bank PLC
22 October 2026
For immediate release
SECURE TRUST BANK PLC
Q3 2026 trading update
On track to deliver FY 2026 profit expectations
Secure Trust Bank PLC ("STB" or the "Group"), a leading specialist lender, announces its trading update for the third quarter ended 30 September 2026.
Ian Corfield, Chief Executive Officer, said:
"We continued to deliver against our strategic priorities, with targeted lending growth across our businesses and execution of our cost management programme. The successful completion of our £10 million share buyback programme reflects our focus on disciplined capital allocation, delivering value to shareholders. The business continues to demonstrate resilience despite a challenging macroeconomic environment.
While softer market conditions in asset-based lending have impacted fee income in Business Finance, we remain on track to deliver consensus FY 2026 profit before tax expectations, supported by growth across the broader business. We remain confident in the delivery of our medium-term targets and focused on sustainable growth in attractive specialist markets."
Q3 financial and operational highlights
· Successfully completed the second £5 million tranche of the £10 million share buyback programme, returning excess capital from the sale of the Consumer Vehicle Finance business back to shareholders.
· Momentum maintained in the execution of the cost management programme, management remain confident of delivering the target £25 million of total cost savings in FY 2028.
· The continuing1 loan book, at £3.5 billion, increased 1.4% due to growth in Business Finance, despite a softer market for asset-based lending. Year-to-date loan book growth was 6.4% and year-on-year growth was 9.5%.
· All product initiatives launched in 2026, across our two lending divisions, are now generating new business, with growing pipelines providing momentum into 2027.
· Customer deposits remained broadly stable. The Group continued actively to manage funding requirements.
· Credit performance has remained robust.
· The Retail Finance V12 mobile app relaunched in September and now has over 780,000 registered users. Record levels of customer interaction, self-service and digital payments are improving customer outcomes and reducing operational demand.
Company compiled consensus FY 2026 profit before tax of £63.7 million is the simple average of analysts' forecasts for STB's FY 2026 adjusted profit before tax.
2026 guidance unchanged
Target
Net lending
8-10% growth
Risk adjusted margin
c. 10 bps improvement
Costs
Cost income ratio c.47%
Capital
Common Equity Tier 1 ratio c.13.5%
Distributions
Progressive dividend policy maintained
Launch £10 million buyback programme
Discontinued activities
Break even profit before tax before adjusting items
Medium-term targets for delivery in FY 2028 unchanged
Annual growth in net lending
c.10%
Return on Average Equity
>16%
Footnotes
1. Continuing activities include Retail Finance, Business Finance, and Central operations. Discontinued activities include the Vehicle Finance business.
Enquiries:
Secure Trust Bank PLC
Ian Corfield, Chief Executive Officer
Rachel Lawrence, Chief Financial Officer
Phil Deakin, Strategy and Corporate Development Director
Tel: +44 (0)121 693 9100
Email: ir@securetrustbank.co.uk
Investec Bank plc (Joint Broker)
Christopher Baird
Gordon Hamilton
Tel: +44 (0)20 7597 5970
Shore Capital Stockbrokers (Joint Broker)
Mark Percy
Oliver Jackson
Sophie Collins
Ansh Batura
Tel: +44 (0)20 7408 4090
Camarco
Geoffrey Pelham-Lane
Amrith UppuluriTel: +44 (0) 7733 124 226, +44 (0) 7763 083 058
Forward looking statements
This document contains forward looking statements about the business, strategy and plans of the Group and its current objectives, targets and expectations relating to its future financial condition and performance. Statements that are not historical facts, including statements about the Group'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. The Group'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 UK domestic and global economic and business conditions, risks concerning borrower credit quality, market related risks including interest rate risk, inherent risks regarding market conditions and similar contingencies outside the Group's control, expected credit losses in certain scenarios involving forward looking data, any adverse experience in inherent operational risks, any unexpected developments in regulation, or regulatory and other factors. The forward-looking statements contained in this document are made as of the date of this announcement. Except as required by law or regulation, the Group undertakes no obligation to update or revise any forward-looking statements.
About STB
STB is an established, well‐funded and capitalised UK retail bank with a more than 72‐year trading track record. STB operates principally from its head office in Solihull, West Midlands. The Group's diversified lending portfolio focuses on two lending sectors, with multiple product verticals, supported by a strong deposits franchise:
(i) Business Finance; and
(ii) Retail Finance through its V12 brand.
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.
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