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.£323.3m
Last close1,750.00p
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 *5.7(12.6)(29)

* % Relative to local index

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Company news

Secure Trust Bank plc (STB)

Thu, 03 Nov 2011 08:07:22 GMT

Arbuthnot sells down majority stake in Secure Trust Bank

Fri, 27 May 2016 15:33:53 GMT

Secure Trust raises red flag over unsecured personal loans market

Fri, 13 Jan 2017 08:38:52 GMT

DIRECTOR DEALINGS: Secure Trust Bank CEO Buys Shares As Profit Grows

Wed, 23 Aug 2017 12:56:15 GMT

The Monday interview: Paul Lynam, Secure Trust Bank

Sun, 14 Oct 2012 16:12:38 GMT

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 15.3 N/A
2016A 118.2 N/A 32.9 137.7 12.7 N/A
2017E 136.5 N/A 30.7 132.8 13.2 N/A
2018E 161.7 N/A 40.5 174.2 10.0 N/A

Last updated on 29/08/2017

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

In its H117 results, STB reported continued strong growth of over 30% in its loan book compared with the same period last year (to £1.5bn). The adoption of a more risk-averse lending positioning, including the withdrawal from higher-risk unsecured lending and sub-prime motor finance, has trimmed interest yields from 11.7% for H116 to 10.1%. This and an increase in impairments, partly reflecting performance of sub-prime motor loans, resulted in a 10% reduction in underlying pre-tax profit (to £14.5m) compared with the prior year period. However, the loan book is now positioned to be more resilient in the face of a potential worsening of credit conditions and the capital position remains strong (CET1 15.3%) to exploit organic and inorganic opportunities.

Last updated on 06/09/2017

Industry outlook

While lower asset yields from new, less risky, business and maintained impairments from the back book pinch near-term returns, the potential growth of over 30% in FY18 and FY19 earnings is an indicator of gains to come on the back of a higher-quality, more diverse and resilient loan book. Shareholders are likely to be reassured by the discipline the group is showing in deploying its significant excess capital.

Last updated on 06/09/2017

Key management

Henry Angest , Chairman
Paul Lynam, CEO
Neeraj Kapur, FD

Company address

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