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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 launched a non-standard mortgage business.

Stock data

Market cap.£319.2m
Last close1,727.50p
High / Low (52 weeks)2085.0p / 1512.5p
Stock market listingLN
Forecast net debt (m)N/A
Forecast gearing ratio (%)N/A
TeamFinancials
SectorFinancials

Price performance

%1m3m12m
Actual(3)(9.7)(1.3)
Relative *(2)(9.4)(4.3)

* % 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 15.3 N/A
2017A 129.5 N/A 27.0 116.4 14.8 N/A
2018E 152.9 N/A 34.9 154.8 11.2 N/A
2019E 174.0 N/A 44.4 191.7 9.0 N/A

Last updated on 23/08/2018

Investment summary

H118 results show Secure Trust Bank (STB) is making good progress in shifting its loan mix into lower risk segments and where pricing is more attractive. Despite being in a transition phase, STB delivered strong momentum in loans (22% YoY) and PBT (+38%). Concerns regarding these asset mix changes and the transition drag on earnings have probably contributed to recent share price weakness and the current valuation suggests there is room for rerating as STB continues to deliver successfully on its strategy.

Last updated on 15/08/2018

Industry outlook

Looking ahead, STB sees good potential for profitable growth in business, retail, motor and consumer mortgage lending while retaining a cautious approach to credit risk. Following the period of adjustment in 2017 STB is well placed to generate attractive earnings growth. STB will continue to monitor opportunities for inorganic growth and the recently agreed takeover of Virgin Money by CYBG illustrates the potential for consolidation among small and mid-sized lenders. H118 results for STB are due to be announced 8 August.

Last updated on 27/07/2018

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