TIDMSTB
RNS Number : 2587E
Secure Trust Bank PLC
27 October 2022
PRESS RELEASE
Secure Trust Bank PLC
LEI: 213800CXIBLC2TMIGI76
27 October 2022
For embargoed release at 07.00 am
SECURE TRUST BANK PLC
Q3 2022 Trading Update
Prudent management of lending growth
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No. 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018.
Secure Trust Bank PLC ("Secure Trust Bank", "STB" or the
"Group"), a leading specialist lender, is pleased to announce its
trading update for the third quarter ended 30 September 2022.
Positive momentum has continued in Q3 with management taking
pre-emptive prudent action to slow lending growth and focus on
operational efficiency. Credit criteria have been proactively
tightened further to reflect macroeconomic uncertainty and
management of the overall risk profile of the lending book. The
Group continues to trade in line with management's
expectations.
Highlights
Q3'22 Q3'21 Change Q2'22 Change
Net Lending - Core* GBP2,813.4m GBP2,315.0m 21.5% GBP2,751.2m 2.3%
------------- ------------- ------- ------------ --------
Deposits GBP2,349.2m GBP1,964.9m 19.6% GBP2,290.9m 2.5%
------------- ------------- ------- ------------ --------
New business lending* GBP502.1m GBP368.4m 36.6% GBP633.9m (20.8)%
------------- ------------- ------- ------------ --------
Net Lending - Core*
The Core net loan book grew by 21.5% compared to Q3 2021 and
2.3% compared to Q2 2022. The Q3 2022 quarter-on-quarter growth was
predominately delivered in Consumer businesses of 6.4%, with
Business Finance reducing by 1.2%. Growth slowed in the quarter
following actions to tighten credit criteria and reduce new
business levels.
Deposits
Customer deposits were 2.5% higher at the end of the quarter
compared to Q2 2022 to support the growth in the loan book. The
Group continues to focus on the management of funding costs in a
steep rising rate environment and preservation of Net Interest
Margin which remained flat in Q3 2022 compared with HY22 at
5.7%.
New Business lending*
Total new business lending grew significantly year-on-year with
market share gains across our Consumer businesses reflecting a
recovery from COVID. As expected, new business lending decreased in
the quarter by 20.8% compared to Q2 2022 reflecting the continued
proactive tightening of credit criteria given the current
macroeconomic environment.
David McCreadie, Chief Executive Officer:
"We have continued to support our customers and business
partners during this period of market uncertainty and are pleased
with our operational performance, progress on our strategic targets
and further improvements in operational efficiency. Against a
backdrop of rising inflation and interest rates we have taken
decisions to slow the growth rate of lending. We will continue to
adopt a flexible approach to loan book growth across our
diversified portfolio and a prudent approach to risk management.
Our track record of navigating economic uncertainties gives us
confidence in managing through this challenging period and being
well positioned to take advantage of growth opportunities when the
economic backdrop improves. Secure Trust Bank remains well
positioned to capitalise on its strong foundations in its Core
specialist lending markets and to deliver its medium-term
targets."
*Following the simplification of our lending activities, 'Core'
excludes the Asset Finance and Consumer Mortgages loan books which
were disposed of in July 2021 and the Debt Managers (Services) loan
portfolio disposed of in May 2022.
Enquiries:
Secure Trust Bank PLC
David McCreadie, Chief Executive Officer
Rachel Lawrence, Chief Financial Officer
Phil Clark, Investor Relations
Tel: 0121 693 9100
Stifel Nicolaus Europe Limited (Joint Broker)
Robin Mann
Stewart Wallace
Tel: 020 7710 7600
Canaccord Genuity Limited (Joint Broker)
Emma Gabriel
Tel: 020 7523 8309
Forward looking statements
This document 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 document
are made as of the date of this document, 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 931 employees (full-- time
equivalent) as at 30 June 2022. 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, One Arleston Way, Solihull, B90 4LH.
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END
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