Secure Trust Bank PLC 2017 Third Quarter Trading Update (8571T)
October 18 2017 - 1:00AM
UK Regulatory
TIDMSTB
RNS Number : 8571T
Secure Trust Bank PLC
18 October 2017
PRESS RELEASE
18 October 2017
For immediate release
SECURE TRUST BANK PLC
2017 Third Quarter Trading Update
Secure Trust Bank PLC and its subsidiaries ("Secure Trust Bank"
or the "Group") provide a trading update in relation to the third
quarter. As highlighted in the interim results, the Group's loan
book has continued to grow and the business has traded in line with
management expectations during the third quarter.
The Group believes Secure Trust Bank's continuing strategic
repositioning, with a move away from higher risk, consumer
unsecured and sub-prime motor products remains the correct course
of action and aligns with the UK's economic and regulatory
backdrop. Given the ongoing economic uncertainty and recent
cautious regulator commentary about certain consumer credit
sectors, the Group is continuing its cautious stance.
The Group's Business Finance operations continued to make
progress in Q3 with the Group's exposure to large prime central
London house building continuing to reduce.
The Group's Consumer Finance operations also performed as
expected. During the period the Group launched a new Retail Finance
proposition which supports the relationship between V12 Retail
Finance and retailers and provides consumers with an additional
source of finance. The new proposition has initially been launched
in conjunction with AO.COM. V12 will continue to receive credit
applications as before and accept those that meet the Group's
credit criteria. Simultaneously the remaining applications will be
presented to an additional lender whose risk criteria may differ to
those of the Group, resulting in an increase in the overall
percentage of applications for which finance is provided. This
benefits the retailer through increased sales. V12 benefits from an
improved relationship with the retailer without having to increase
its own risk profile whilst increasing non-risk income. The
additional lender benefits from the use of V12's technology and
relationships as a loan distribution channel.
The Group continues to shift the emphasis of its Motor business
to lower risk, lower margin lending and the run off portfolios in
unsecured personal lending and sub-prime motor have performed as
expected during the period.
The new deposit platform has been successfully implemented. This
was a major IT programme which, as previously highlighted, will
confer several benefits for the Group, enhancing the offering,
providing internet banking, improving efficiency and risk controls
while providing flexibility for future products. The Group
continues to see strong demand for its deposit products. A
standstill in raising deposits was in place ahead of the switchover
in order to facilitate a smooth transition. The Group has therefore
been more active than usual during the third quarter in the deposit
market in order to prefund lending activities in advance of the
switchover.
The Group has also made considerable progress during the period
with its preparations for the implementation of IFRS9. The Group's
continues to refine its IFRS9 models whilst seeking clarity about
proposed regulatory and transitionary treatments. The Group will
provide further guidance on IFRS9 implementation in due course.
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)
Andrew Buchanan
Sunil Duggal
Tel: 020 7523 8000
This information is provided by RNS
The company news service from the London Stock Exchange
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