RNS Number : 8179A
Secure Trust Bank PLC
25 January 2024


Secure Trust Bank PLC


25 January 2024

For immediate release



Pre-Close Trading Update

Net loan book grows 13.6%


Secure Trust Bank PLC ("Secure Trust Bank", "STB" or the "Group"), a leading specialist lender, is pleased to announce its pre close trading update for the fourth quarter ended 31 December 2023. The Group continues to trade in line with management expectations, with a significant increase to year-on-year underlying profits before tax and impairments. 




·      Net lending grew by 13.6% in the year to £3.3bn, a significant step towards our £4bn ambition as presented at our November 2023 Capital Markets Day. 

·      All four specialist lending businesses delivered record levels of new lending in 2023. Net interest margin was in line with H1 2023. 

·      The strong loan book growth led to an improvement in the cost income ratio. 

·      We remain on track to deliver £5m in total annualised savings from our cost optimisation programme in 2024.


Q4 2023

Q3 2023


Q4 2022


Net lending






New business lending













Net lending

The customer loan book grew by 3.2% in the quarter and 13.6% compared to Q4 2022. All business areas recorded growth in the fourth quarter, notably with Real Estate Finance growing by 3.1% following a flat third quarter and by 11.5% compared to Q4 2022. Consumer Lending grew by 3.2% in the quarter and by 18.4% compared to Q4 2022.


New business

Total new business lending was broadly flat in the quarter and increased 30.3% compared to Q4 2022.  Business Finance saw a 13.6% reduction on Q3 2023, following a very strong third quarter for Commercial Finance, but still 287% growth on Q4 2022.  Consumer Finance recorded new business lending volumes of £0.4bn in the quarter which reflects a 7.1% increase on Q3 2023 and a 2.3% increase on Q4 2022.



The Group has continued to attract deposits from a price competitive market. Customer deposits were 5.5% higher at the end of the quarter and 14.0% higher than Q4 2022.


Regulatory initiatives - Vehicle Finance


We note the FCA's recent announcement about discretionary motor finance commissions. We operated some discretionary commission arrangements until 2017.  From 2014 to 2017, a mid-single digit proportion of our new vehicle finance loans included such arrangements. The FCA plans to set out its next steps in Q3 2024, when the implications for the industry should become clearer. We will provide further information to the market on these developments as appropriate.


Separately, during H2 2023 we engaged in formal discussions with the FCA about our collections processes, procedures and policies in Vehicle Finance. This follows the FCA's review of Borrowers in Financial Difficulty (BiFD) across the industry. We have engaged external support to assist us with this review and, where necessary, are enhancing our approach. We currently expect the review to conclude by the end of H1 2024.

David McCreadie, Chief Executive Officer, said:


"We have delivered another strong underlying performance in 2023 with excellent progress made in growing our net lending balances and delivering cost efficiency improvements.  We have been operating in a challenging economic environment for a prolonged period. Our business model has proven to be resilient, and we have continued to make significant progress in delivering our strategic plans.


"I am cautiously optimistic that inflation will continue to fall and that stable lower interest rates will follow leading to a less volatile trading environment. We remain focused on delivering positive outcomes for all of our customers and delivering products and services that meet their needs."



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)

Bruce Garrow

David Anderson

Maria Gomez de Olea

Tel: +44 (0) 20 7597 5970


Shore Capital Stockbrokers (Joint Broker)

Mark Percy / Angus Murphy (Corporate Advisory)

Guy Wiehahn (Corporate Broking)

Tel: +44 (0)20 7408 4090


Ed Gascoigne-Pees, Geoffrey Pelham-Lane, Sean Palmer


Tel: 07591 760844


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 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 71 year trading track record. Secure Trust Bank operates principally from its head office in Solihull, West Midlands, and had 868 employees (full‐ time equivalent) as at 31 December 2023. 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.


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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