TIDMSTB
RNS Number : 3015L
Secure Trust Bank PLC
12 May 2022
PRESS RELEASE
Secure Trust Bank PLC
LEI: 213800CXIBLC2TMIGI76
12 May 2022
For immediate release
SECURE TRUST BANK PLC
Q1 2022 Trading Update
Growth momentum continues
This announcement contains Inside Information
Secure Trust Bank PLC and its subsidiaries ("Secure Trust Bank",
"STB" or the "Group") provide a trading update for the first
quarter ended 31 March 2022.
Highlights
Q1'22 Q4'21 Change Q1'21 Change
New Business Lending GBP488.2m GBP471.1m 3.6% GBP318.5m 53.3%
------------- ------------- ------- ------------ -------
Loans GBP2,645.1m GBP2,531.9m 4.5% GBP2,334.7m 13.3%
------------- ------------- ------- ------------ -------
Core Loans (1) GBP2,569.3m GBP2,451.0m 4.8% GBP2,157.9m 19.1%
------------- ------------- ------- ------------ -------
Deposits GBP2,190.1m GBP2,103.2m 4.1% GBP1,917.4m 14.2%
------------- ------------- ------- ------------ -------
New Business
Total new business lending increased by 3.6% in the quarter and
53.3% compared to Q1 2021 demonstrating continued momentum
post-pandemic. Record new business volumes have been delivered for
successive quarters in both the Vehicle Finance and Retail Finance
businesses.
Core Loan Book
The core loan book has grown by 4.8% in the quarter and 19.1%
compared to Q1 2021. Strong growth in the quarter was achieved in
Commercial Finance of 17.7% and Vehicle Finance of 11.9%. Retail
Finance grew at 4.5% in the quarter and Real Estate Finance was
broadly flat. The first quarter growth has been driven by the
strong New Business levels.
Deposits
Customer deposits were 4.1% higher at the end of the quarter, in
line with loan book growth. The Group's strong liquidity position
reflects a pre-funding approach for the lending pipeline.
David McCreadie, Chief Executive Officer:
"We remain mindful of the impact that the current high levels of
inflation will have on household finances and the macro-economic
uncertainty caused by geopolitical events. We are committed to
supporting our existing customers and continuing to manage our
businesses prudently with a selective approach to lending.
Our new business lending has continued to grow quarter on
quarter maintaining the momentum built during the second half of
2021. Our core lending balances grew 19.1% compared to Q1 2021 and
we remain on track to deliver against our medium-term growth
targets.
During the first quarter, the Group announced the agreement to
sell its debt management loan portfolio and its exit from the debt
purchase market. We have taken action to simplify the Group in
order to focus on our specialist lending businesses with the
strongest prospects for delivering sustainable and profitable
medium to long term growth. We are pleased with our performance in
capturing growth opportunities across our businesses during the
first quarter."
(1) - Core Loans excludes the Asset Finance and Consumer
Mortgages loan books sold in July 2021 and the sale of the debt
management loan portfolio announced in March 2022
Enquiries:
Secure Trust Bank PLC
David McCreadie, Chief Executive Officer
Rachel Lawrence, Chief Financial Officer
Tel: 0121 693 9100
Stifel Nicolaus Europe Limited (Joint Broker)
Robin Mann
Gareth Hunt
Stewart Wallace
Tel: 020 7710 7600
Canaccord Genuity Limited (Joint Broker)
Andrew Potts
Tel: 020 7523 8000
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 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 STB's control, the COVID-19 pandemic,
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
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 the Company
Secure Trust Bank is an established, well--funded and
capitalised UK retail bank with a 70 year trading track record.
Secure Trust Bank operates principally from its head office in
Solihull, West Midlands, and had an average of 973 employees
(full-- time equivalent) during 2021. 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.
As at 31 December 2021 the Group's loans and advances to
customers totalled GBP2,531.9 million (66.6% of which is secured on
assets and property), customer deposits totalled GBP2,103.2 million
and the Group's total customer base was over 1.5 million customers.
As these figures are as at 31 December 2021, they include 212
employees, GBP79.6 million in loans and advances to customers, and
approximately GBP0.6 million customers which relate to Debt
Managers (Services) Ltd (DMS). As announced, DMS agreed to sell its
loan portfolio and expects, in the second half of 2022, to migrate
its customers and transfer its employees to the purchaser of the
portfolio.
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.
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END
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