Secure Trust Bank PLC 3rd Quarter 2018 Trading Update (1011E)
17 Octubre 2018 - 01:00AM
UK Regulatory
TIDMSTB
RNS Number : 1011E
Secure Trust Bank PLC
17 October 2018
PRESS RELEASE
Secure Trust Bank PLC
LEI: 213800CXIBLC2TMIGI76
17 October 2018
For immediate release
SECURE TRUST BANK PLC
Q3 2018 Trading Update
Secure Trust Bank and its subsidiaries ("Secure Trust Bank",
"STB" or the "Group") provide a trading update in relation to the
third quarter ended 30 September 2018.
The business has traded strongly during the third quarter
consistent with the trends highlighted by the Group in respect of
the first half of 2018. The overall results for the period are in
line with management expectations and the Group remains comfortable
with its previous guidance in respect of the outlook for the full
year.
Given the heightened economic and political uncertainty arising
from the ongoing Brexit negotiations the Group continues to be
selective in respect of new lending activities. The associated
strategic repositioning of the Group towards lower risk lending in
attractive market segments continues to drive profit growth,
improve the credit quality of new customer loan originations and
reduce impairment charges under IFRS9. The investment made in
collections during 2017 is being leveraged this year with positive
results.
STB continues to diversify and expand its capital base to
support its growth, while taking into account increases in
regulatory capital buffers and potential headwinds from political
and economic uncertainty. As previously disclosed, the Group has in
the last three months issued a total of GBP50,000,000 6.75% Fixed
Rate Reset Callable Subordinated Notes due 2028. These qualify as
Tier 2 regulatory capital. The Notes will help to reduce the
Group's weighted average cost of capital and increase the Group's
total regulatory capital ratio to 16.5% on a proforma basis as at
30 June 2018.
The Group has taken a lease on new London premises at 67 Lombard
Street in the heart of the City and will be moving out of its
current offices in Arbuthnot House on Wilson Street within six
months. The Board do not anticipate any material increase in
property costs with the larger office space.
On 28(th) September 2018, the Citizens Advice Bureau issued a
"Super Complaint" to the Competition and Markets Authority, arguing
that customers across many utility and financial products are being
penalised for their loyalty. The Financial Conduct Authority's
(FCA) 'Price discrimination in the cash savings market' paper
published in July 2018 noted that millions of passive savers are
paid very little interest on their legacy deposit accounts. STB has
a long standing culture of treating customers fairly, for example
paying attractive interest rates to savers and does not expect to
face any threat from this super complaint or the FCA's ongoing
reviews. The Group is supportive of regulatory changes that serve
to create a level competitive playing field which should ultimately
result in better outcomes and more choice for consumers and
businesses alike.
Enquiries:
Secure Trust Bank PLC
Paul Lynam, Chief Executive Officer
Neeraj Kapur, Chief Financial Officer
Tel: 0121 693 9100
Stifel Nicolaus Europe Limited (Joint Broker)
Robin Mann
Gareth Hunt
Tel: 020 7710 7600
Canaccord Genuity Limited (Joint Broker)
Sunil Duggal
Tel: 020 7523 8000
About the Company:
Secure Trust Bank is an established, well--funded and
capitalised UK retail bank with a 66 year trading track record.
Secure Trust Bank operates principally from its head office in
Solihull, West Midlands, and had 831 employees as at 30 June 2018.
The Group's diversified lending portfolio currently focuses on
three sectors:
(i) Business Finance through its Real Estate Finance, Asset
Finance and Commercial Finance divisions
(ii) Consumer Finance through its Motor Finance and Retail Finance divisions and
(iii) Consumer Mortgages.
As at 30 June 2018 the Group's loans and advances to customers
totalled GBP1,839.0 million, customer deposits totalled GBP1,645
million and the Group's total customer base was over 1 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.
www.securetrustbank.com
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END
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