REG - Secure Trust BankPLC - Q1 2025 Trading Update

Secure Trust BankAnnouncement

15/05/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250515:nRSO7281Ia&default-theme=true

RNS Number : 7281I  Secure Trust Bank PLC  15 May 2025

PRESS RELEASE

Secure Trust Bank PLC

15 May 2025

For immediate release

SECURE TRUST BANK PLC

 

Q1 2025 Trading Update

Continued net lending growth towards £4bn ambition

 

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 2025. The Group delivered continued growth in net
lending and is trading in line with management expectations.

 

Highlights

              Q1'25       Q4'24       QoQ % Change  Q1'24       YoY % Change
 Net lending  £3,725.4m   £3,608.5m   3.2%          £3,372.6m   10.5%
 Deposits     £3,372.8m   £3,244.9m   3.9%          £2,921.8m   15.4%

 

Net lending

The net loan book grew by 3.2% in the quarter (to £3.7bn) and 10.5%
year-on-year.  In Q1'25 Business Finance and Consumer Finance net lending
balances grew by 4.9% and 1.8% respectively.  This reflected strong pipeline
conversion from Q4'24. The Group is within reach of its £4 billion net
lending ambition in the near term.

 

Deposits

Customer deposits grew by 3.9% in the quarter (to £3.4bn) to support our
lending objectives and were 15.4% higher compared to Q1'24. In Q1 the Group
repaid a further £98m of TFSME ahead of maturity with a further £30m repaid
since the end of the quarter. 74% of all TFSME funding has now been repaid,
with £102m outstanding.

 

Debt sale completed

In early April, the Group sold £25.8m of defaulted Vehicle Finance loan
balances that had built up through 2024 following the secondary impacts of the
FCA's Borrowers in Financial Difficulty review. This transaction is the first
of several initiatives that will allow operational resources to be deployed
more effectively to manage early-stage arrears and defaults.

 

David McCreadie, Chief Executive Officer, said:

 

"The Group delivered strong net lending growth in the period, moving closer
towards our £4 billion net lending ambition. We continue to manage the
trajectory towards this level prudently. We are monitoring for potential
impacts of the current turbulence in global markets and across the
geopolitical landscape.

 

I am pleased that we have completed the first key initiative that
significantly reduces the excess stock of defaulted loans in Vehicle Finance.
We also completed the implementation of our new operating model and are on
track to deliver the previously announced £8m of annualised cost savings from
Project Fusion(1) by the end of this year. We are looking ahead with
confidence."

 

(1) Project Fusion savings measured against FY 2021 cost base.

 

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)

Chris Baird

David Anderson

Maria Gomez de Olea

Tel: +44 (0) 20 7597 5970

 

Shore Capital Stockbrokers (Joint Broker)

Mark Percy / Sophie Collins (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

 

 

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 72 year trading track record. Secure Trust Bank operates
principally from its head office in Solihull, West Midlands, and had 904
employees (full‐ time equivalent) as at 31 December 2024. 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.

 

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  TSTPKQBDFBKDDPD