Secure Trust Bank PLC Trading Statement (1879N)
January 16 2019 - 02:00AM
UK Regulatory
TIDMSTB
RNS Number : 1879N
Secure Trust Bank PLC
16 January 2019
PRESS RELEASE
Secure Trust Bank PLC
LEI: 213800CXIBLC2TMIGI76
For immediate release
SECURE TRUST BANK PLC
Pre-Close Trading Update
Secure Trust Bank PLC ("STB" or the "Group") today issues a
pre--close trading update ahead of its annual results announcement
for the year ended 31 December 2018 scheduled for 28 March
2019.
The Group continued to trade strongly in the final period of
2018 and full year results for the year are expected to be in line
with management's and the market's expectations.
Customer numbers and the associated Retail Finance, Motor
Finance, Mortgages and SME lending balances have continued to grow,
in a carefully controlled manner, during the period with customer
lending balances exceeding GBP2 billion for the first time ever.
This is an important milestone.
Given the heightened economic and political uncertainty the
Group continues to be selective in respect of new lending
activities. The strategic repositioning of the Group towards lower
risk lending across a focused group of attractive market segments
continued to drive profit growth and improve the credit quality of
new customer loan originations. The legacy subprime motor portfolio
has, as expected, been run-down to immaterial levels and the
resulting shift in the portfolio mix has driven the expected
significant reduction in impairments. The Group is progressing
plans to offer a broader range of motor finance products in the
prime end of the market.
The Group's 2018 interim results noted lenders were increasingly
competing on price and risk appetite to drive new residential
mortgage business volumes and that Secure Trust Bank was tempering
the growth of this part of the business. During the second half of
2018 market pressures and competition intensified as evidenced by
increasing Loan to Value metrics and lower new net lending margins.
Having considered all of these factors, Secure Trust Bank is
proposing to cease origination of new residential mortgage business
until conditions become more favourable. Any changes in the
business that may arise from this proposal, following the
conclusion of the consultation period with the staff affected, are
not expected to have a material impact on 2018 and 2019
earnings.
The Group's lending portfolio is appropriately positioned for
the current conditions and the short duration nature of the asset
portfolio means the Group can react quickly to both opportunities
and threats.
The Group entered 2019 with positive business momentum, robust
capital positions and very strong liquidity and remains well placed
to pursue its strategic priorities.
Enquiries:
Secure Trust Bank PLC
Paul Lynam, Chief Executive Officer
Neeraj Kapur, Chief Financial Officer
Tel: 0121 693 9100
Stifel Nicolaus Europe Limited (Joint Broker)
Robin Mann
Gareth Hunt
Tel: 020 7710 7600
Canaccord Genuity Limited (Joint Broker)
Sunil Duggal
Tel: 020 7523 8000
About the Company:
Secure Trust Bank is an established, well--funded and
capitalised UK retail bank with a 66 year trading track record.
Secure Trust Bank operates principally from its head office in
Solihull, West Midlands, and had 831 employees as at 30 June 2018.
The Group's diversified lending portfolio currently focuses on
three sectors:
(i) Business Finance through its Real Estate Finance, Asset
Finance and Commercial Finance divisions
(ii) Consumer Finance through its Motor Finance and Retail Finance divisions and
(iii) Consumer Mortgages.
As at 30 June 2018 the Group's loans and advances to customers
totalled GBP1,839.0 million, customer deposits totalled GBP1,645
million and the Group's total customer base was over 1 million.
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, 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 or visit www.rns.com.
END
TSTFMGMMNKMGLZM
(END) Dow Jones Newswires
January 16, 2019 02:00 ET (07:00 GMT)
Secure Trust Bank (LSE:STB)
Historical Stock Chart
From Feb 2024 to Mar 2024
Secure Trust Bank (LSE:STB)
Historical Stock Chart
From Mar 2023 to Mar 2024