Secure Trust Bank (STB)

Business description

Secure Trust Bank is a well-established specialist bank, addressing niche markets within consumer and commercial banking. It has recently launched a non-standard mortgage business.

Stock data

Market cap.£379.7m
Last close2,055.00p
High / Low (52 weeks)2455.0p / 1512.5p
Stock market listingLN
Forecast net debt (m)N/A
Forecast gearing ratio (%)N/A
TeamFinancials
SectorFinancials

Price performance

%1m3m12m
Actual20.014.8(10.7)
Relative *12.719.4(14.3)

* % Relative to local index

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Company news

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2016A 107.0 N/A 27.3 113.0 18.2 N/A
2017A 129.5 N/A 27.0 116.4 17.7 N/A
2018E 160.5 N/A 37.0 160.7 12.8 N/A
2019E 181.4 N/A 47.0 202.5 10.1 N/A

Last updated on 12/04/2018

Latest research

Investment summary

FY17 was a further year of change for Secure Trust Bank (STB) as management completed the shift away from unsecured consumer loans and reduced the risk profile in motor finance. This restricted near-term profits but the pace of loan book growth has remained strong and looks set to feed into substantial earnings growth as the cost of risk subsides, more than offsetting the lower returns earned on lower risk lending. The shares have begun to respond to this prospect following the results, but the valuation suggests further upside.

Last updated on 12/04/2018

Industry outlook

Looking ahead, STB sees good potential for profitable growth in business, retail, motor and consumer mortgage lending. The new deposit platform completed in 2017 will help support this growth, providing greater flexibility and containing funding costs. New management has been brought in to motor finance tasked with developing in the prime and near-prime segments. Following the period of adjustment in 2017 STB is well placed to generate attractive earnings growth.

Last updated on 06/04/2018

Key management

Paul Lynam, CEO
Neeraj Kapur, FD

Company address

One Arleston Way
Shirley
Solihull, West Midlands
B90 4LH
United Kingdom
0121 693 9100
View website