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.£328.4m
Last close1,777.50p
High / Low (52 weeks)2455.0p / 1625.0p
Stock market listingLN
Forecast net debt (m)N/A
Forecast gearing ratio (%)N/A

Price performance

Relative *(4.4)(6)(28.7)

* % 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)
2015A 92.1 N/A 26.7 114.3 15.6 N/A
2016A 118.2 N/A 32.9 137.7 12.9 N/A
2017E 136.5 N/A 30.7 132.8 13.4 N/A
2018E 161.7 N/A 40.5 174.2 10.2 N/A

Last updated on 04/12/2017

Latest research

Progressing with a prudent approach

Update | Financials | 25/08/2017

Ready for the next stage

Outlook | Financials | 31/03/2017

Seeking profitable growth

Update | Financials | 19/01/2017

On the Main Market and on track

Update | Financials | 08/11/2016

Poised to benefit from uncertain times

Update | Financials | 02/08/2016

A strategically flexible bank

Review | Financials | 16/06/2016

Growing into its capital

Outlook | Financials | 26/04/2016

Paying back on SME investment

Update | Financials | 31/07/2015

Taking the opportunity

Outlook | Financials | 25/03/2015

Daily comment

Institutional Comment | Financials | 19/03/2015

Firing on all cylinders

Update | Financials | 21/01/2015

Daily comment

Institutional Comment | Financials | 20/10/2014

Investment summary

STB’s Q3 trading update confirmed that the business is trading in line with expectations. The group is maintaining its move away from higher-risk consumer unsecured and subprime motor products and is also continuing to reduce its exposure to large prime central London housebuilding. The bank has launched a new partnership arrangement for V12 Retail Finance whereby borrowing applications that do not meet STB’s criteria are referred to another lender, prospectively generating incremental fee income and strengthening the retailer relationship. STB also reported that its new deposit platform is in place, enhancing efficiency, flexibility of product offering and risk controls.

Last updated on 13/12/2017

Industry outlook

While lower asset yields from new, less risky, business and maintained impairments from the back book are pinching near-term returns, the potential growth of over 30% in FY18 and FY19 earnings is an indicator of gains to come from a higher-quality loan book. Shareholders are likely to be reassured by the discipline the group is showing in deploying its significant excess capital. Following the private equity purchase of Shawbrook and agreed offer for Aldermore from FirstRand, further consolidation is possible. STB’s share price remains modestly rated on a price to book of c 1.4x.

Last updated on 13/12/2017

Key management

Paul Lynam, CEO
Neeraj Kapur, FD

Company address

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