RNS Number : 3783M
Secure Trust Bank PLC
21 January 2021
Secure Trust Bank PLC
21 January 2021
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 (MAR)
SECURE TRUST BANK PLC
Pre Close Trading Update
Secure Trust Bank PLC and its subsidiaries ("Secure Trust Bank",
"STB" or the "Group") today issues a pre close trading update ahead
of its annual results announcement for year ended 31 December 2020
scheduled for 25 March 2021.
The strong rebound in demand for the Group's lending products
since the easing of initial lockdown restrictions continued during
the fourth quarter. The introduction of new restrictions during the
end of December 2020 and into 2021 have impacted the demand in the
As at 11 January 2021, the Group's compiled Full Year 2020
consensus was GBP7.6m Statutory PBT, ranging from GBP5.6m to
GBP9.7m. As the Group has made further positive progress since the
Q3 trading update in October, the Group expects that the full
financial year 2020 results will be materially ahead of the upper
end of consensus profit before tax.
As has been the case since the start of the crisis, colleagues
across the Group continued to support their customers, business
partners and each other during the most trying of circumstances.
This remains our priority.
The Group delivered a strong financial and operating performance
in the fourth quarter.
-- The loan book has remained resilient, increasing slightly on
the previous quarter whilst maintaining pricing and underwriting
discipline. Overall, the Group's loan book is performing in line
with management's expectations.
-- New business volumes continued to increase during the
quarter, driven by Real Estate Finance and Commercial Finance as we
continued to support our existing SME customers. Retail Finance
experienced strong demand pre-Christmas, however early 2021 demand
has been muted by the new restrictions. As expected, Motor Finance
volumes were and continue to be impacted by the new lockdown
restrictions, although we continue to see an attractive long-term
opportunity in this market.
-- Repayment holidays in Motor Finance peaked mid--summer at
19.3% of the customer base. As at 31 December, only 1.2% of Motor
Finance customers had an active repayment holiday. Repayment
holidays in Retail Finance peaked at 2.6% of the customer base. As
at 31 December, only 0.3% of Retail Finance customers had an active
-- Capital and Liquidity positions remain strong with profitable
trading and the continuation of the strategy of replacing maturing
higher priced term deposits with materially lower cost
While the Board continues to be encouraged by current trading,
it recognises that the impact of Covid-19 on the UK economy
generates potential uncertainty in the near term. The Group will be
better placed to comment on financial year 2021 outlook when it
publishes its financial year 2020 results.
David McCreadie, Chief Executive Officer:
"The Group has continued to perform well in a challenging and
uncertain environment. This has been made possible by the hard work
and commitment of our colleagues and I would like to thank every
one of them for that.
As we manage the ongoing impacts of the crisis, including the
introduction of tougher restrictions on all of us, I am confident
in our ability to provide continued support to our customers.
Our business diversification has proven to be a strength
throughout 2020. While the environment remains uncertain, we
continue to believe that the changing competitive landscape and
lower funding costs will present opportunities for STB to grow and
flourish in attractive niches over the long-term. I look forward to
updating our shareholders on our future strategic priorities at our
full-year results in March."
Secure Trust Bank PLC
David McCreadie, Chief Executive Officer
Rachel Lawrence, Chief Financial Officer
Tel: 0121 693 9100
Stifel Nicolaus Europe Limited (Joint Broker)
Tel: 020 7710 7600
Canaccord Genuity Limited (Joint Broker)
Tel: 020 7523 8000
Forward looking statements
This document contains forward looking statements with respect
to the business, strategy and plans of Secure Trust Bank PLC
("Secure Trust Bank", "STB" or the "Group") and its current goals
and expectations relating to its future financial condition and
performance. Statements that are not historical facts, including
statements about Secure Trust Bank or management's beliefs and
expectations, are forward looking statements. By their nature,
forward looking statements involve risk and uncertainty because
they relate to events and depend on circumstances that will occur
in the future. Secure Trust Bank's actual future results may differ
materially from the results expressed or implied in these forward
looking statements as a result of a variety of factors. These
include UK domestic and global economic and business conditions,
risks concerning borrower credit quality, market related risks
including interest rate risk, inherent risks regarding market
conditions and similar contingencies outside Secure Trust Bank's
control, any adverse experience in inherent operational risks, any
unexpected developments in regulation or regulatory and other
factors. The forward looking statements contained in this document
are made as of the date hereof, and Secure Trust Bank undertakes no
obligation to update any of its forward looking statements.
About the Company:
Secure Trust Bank is an established, well--funded and
capitalised UK retail bank with a 68 year trading track record.
Secure Trust Bank operates principally from its head office in
Solihull, West Midlands, and had 972 employees (full-- time
equivalent) as at 30 June 2020. The Group's diversified lending
portfolio currently focuses on two sectors:
(i) Business Finance through its Real Estate Finance, Asset
Finance and Commercial Finance divisions,
(ii) Consumer Finance through its Motor Finance, Retail Finance,
Debt Collection and Consumer Mortgages divisions
As at 30 June 2020 the Group's loans and advances to customers
totalled GBP2,377.5 million, customer deposits totalled GBP1,999.2
million and the Group's total customer base was well over 1.6
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.
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(END) Dow Jones Newswires
January 21, 2021 02:00 ET (07:00 GMT)