Edison Investment Research - SECURE TRUST BANK PLC (STB) Secure Trust Bank - Benign Q1 trading update

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Edison Investment Research

Pedro Fonseca

Secure Trust Bank - Benign Q1 trading update

Secure Trust Bank (STB) announced in its Q120 trading update that new business lending rose 7.1% year-on-year and 2.4% quarter-on-quarter to £318.5m. Loan balances declined by 6.6% and 1.0% respectively, with lending still affected by the COVID pandemic lockdown. The loan balances of the Business Finance and Consumer Finance divisions were ‘static’, but the run-off of the closed Asset Finance and Consumer Mortgage books led to the 1% decline. Management viewed credit performance as ‘benign’. STB is seeing a phased return to pre-pandemic lending criteria in the Motor Finance division. We continue to forecast a 5% year-on-year increase in group loans by the end of FY21. Client deposits fell 8.2% year-on-year and 3.8% quarter-on-quarter in Q121, but STB said it was able to further reduce its cost of funding.

17/05/2021 2 EN

Underlying

SECURE TRUST BANK PLC

Secure Trust Bank is involved in banking and financial services. Co.'s segments are: real estate finance, which include residential and commercial investment and development loans; asset finance, which include loans to small and medium sized enterprises; commercial finance, which include invoice discounting and invoice factoring; personal lending, which include unsecured consumer loans; motor finance, which include hire purchase agreements; retail finance, which include point of sale unsecured finance; and residential mortgages, which is for the self-employed, contract workers. As of Dec 31 2017, Co. had total assets of £1.89 billion and total customers deposits of £1.48 billion.

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GB00B6TKHP66 London Stock Exchange United Kingdom

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Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Analysts

Pedro Fonseca

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Secure Trust Bank - Benign Q1 trading update

Secure Trust Bank: 5 directors

Secure Trust Bank - FY23 underlying PBT broadly maintained

Secure Trust Bank - V12 Retail Finance to support refreshed targets

Manx Financial Group - Termination of coverage

musicMagpie - Termination of coverage

Topps Tiles - Accelerating growth through Q125

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