UK's Secure Trust Bank H1 profit rises on lending growth, discontinued Vehicle Finance unit
UK's Secure Trust Bank H1 profit rises on lending growth, discontinued Vehicle Finance unit
Overview
UK specialist bank's H1 adjusted profit before tax rose 9.4% on higher lending, stable margins
Total profit before tax climbed 40.8%, aided by reduced losses from discontinued Vehicle Finance
Company completed first £5 mln tranche of £10 mln share buyback programme
Outlook
Secure Trust Bank maintains 2026 guidance for 8-10% net lending growth
Company expects 2026 cost income ratio of about 47%
Secure Trust Bank says UK macroeconomic and political environment remains volatile
Result Drivers
LENDING GROWTH - Co said 4.9% increase in net lending balances and product expansion in Retail and Business Finance drove income growth
MARGIN STABLE - Risk adjusted margin stable at 4.2% on pricing discipline and lower cost of risk, boosting adjusted pre-tax profit
DISCONTINUED VEHICLE FINANCE - Profitability improved due to reduced losses and a profit on sale of the Vehicle Finance business
Company press release: ID:nRSM4589Qa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Net Interest Income |
| GBP 76.60 mln |
|
H1 CET1 Capital Ratio |
| 14.30% |
|
H1 Core Pretax Profit |
| GBP 31.40 mln |
|
Analyst Coverage
The one available analyst rating on the shares is "strong buy"
The average consensus recommendation for the banks peer group is "buy."
Wall Street's median 12-month price target for Secure Trust Bank PLC is GBp2,100.00, about 33.9% above its August 12 closing price of GBp1,568.00
The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago
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Aug 12 - ABN Amro lifts annual guidance as central bank rates drive growth
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)