TIDMSTB
RNS Number : 2558G
Secure Trust Bank PLC
23 July 2021
PRESS RELEASE
Secure Trust Bank PLC
LEI: 213800CXIBLC2TMIGI76
23 July 2021
For embargoed release at 07.00am
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
Sale of Mortgage Portfolio
The Board of Secure Trust Bank PLC ('STB') announces that STB
has agreed to sell a portfolio of Mortgage loans to Jacqali
Designated Activity Company, a financing vehicle established by a
global financial institution. This sale represents STB's full exit
from the residential mortgage market, which STB withdrew from in
2019.
The consideration for the sale is estimated at GBP54.6 million,
subject to reconciliation, payable in cash on completion. The cash
purchase consideration for the portfolio was calculated based on an
agreed price (including a premium to net book value) for the
portfolio as at 31 December 2020, adjusted for cash receipts STB
received from the portfolio during the period from then up to the
date of completion. The obligation of the purchaser to pay the
consideration is backed by the global financial institution.
The net book value of the portfolio as at 31 December 2020 was
GBP77.7 million. The portfolio contributed GBP1.95 million
including allocated costs to STB's profit before tax in FY2020, on
an unaudited basis.
The sale is in line with STB's strategy to focus on specialist
lending segments offering higher yields. The capital released is
intended to be reinvested into STB's remaining businesses and for
other general corporate purposes.
The sale and purchase agreement contains warranties and
indemnities, as well as a purchase price reconciliation mechanism,
which are each customary for a transaction of this nature.
David McCreadie, Chief Executive Officer, commented:
"The disposal is in line with STB's strategy of maximising
value, simplifying the Group and focusing on the areas of the
business that have the strongest prospects for delivering
sustainable and profitable medium to long-term growth. The proceeds
will be used to strengthen STB's capital position, provide
additional financial flexibility to deliver its growth strategy,
and ultimately enhance returns for shareholders."
The sale constitutes a class 2 transaction for STB for the
purposes of the Financial Conduct Authority's Listing Rules (the
"Listing Rules"), and this announcement is made in accordance with
STB's disclosure obligations pursuant to Chapter 10 of the Listing
Rules.
-- ENDS-
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)
Emma Gabriel
Tel: 020 7523 8000
About STB:
STB is an established, well--funded and capitalised UK retail
bank with a 69 year trading track record. STB operates principally
from its head office in Solihull, West Midlands, and had 1,003
employees (full--time equivalent) as at 31 December 2020. 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 Motor Finance, Retail Finance
and Debt Management divisions
As at 31 December 2020 the Group's loans and advances to
customers totalled GBP2,358.9 million, customer deposits totalled
GBP1,992.5 million and the Group's total customer base was well
over 1.5 million.
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.
Further information:
This announcement (including any information referred to in this
announcement) contains statements which are, or may be deemed to
be, "forward-looking statements". Forward-looking statements are
prospective in nature and are not based on historical facts, but
rather on current
expectations and projections of STB about future events, and are
therefore subject to risks and uncertainties which could cause
actual results to differ materially from the future results
expressed or implied by the forward-looking statements. STB cannot
give assurance that such expectations will prove to be correct. You
are cautioned not to place any reliance on these forward-looking
statements. Other than in accordance with its legal or regulatory
obligations, STB expressly disclaims any intention or obligation,
to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
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END
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