Secure Trust Bank on track to meet full-year guidance

(Sharecast News) - Secure Trust Bank said it remained on track to meet its full-year 2026 guidance after continuing lending balances grew in the first quarter, supported by Retail Finance and Business Finance.

The London-listed specialist lender said continuing net lending increased 1.5% quarter-on-quarter to £3.35bn in the three months ended 31 March, and was 6.6% higher than a year earlier.

Deposits fell 10.3% during the quarter to £3.15bn and were down 6.6% year-on-year, reflecting a lower funding requirement after the sale of the Consumer Vehicle Finance business was completed in February.

Secure Trust said Retail Finance was broadly stable in the quarter and grew 7.3% year-on-year, driven by a strong performance in Furniture.

Business Finance grew 3.0% quarter-on-quarter and 6.1% year-on-year, supported by growth from its new Bridging product.

The company said new product initiatives had gained traction during the quarter, with key roles now recruited and operational readiness, including technology development, progressing well.

Lending had started across the new products, with a growing pipeline building momentum to support the group's growth ambitions.

Secure Trust reiterated its 2026 guidance for net lending growth of 8% to 10%, a risk-adjusted margin improvement of around 10 basis points, a cost-income ratio of around 47%, and a common equity tier 1 ratio of around 13.5%.

It also maintained its progressive dividend policy and said it intended to launch a £10m share buyback, subject to regulatory approval.

The group said it remained on track to initiate the buyback programme, with an application for regulatory permission submitted and pending approval.

It also reiterated medium-term targets of around 10% annual net lending growth and return on average equity above 16%.

Chief executive Ian Corfield said the group had made "good progress" against the strategic priorities set out in March.

"Growth in our lending divisions and momentum in newer product propositions reflect our continued focus on disciplined execution to deliver higher returns," he said.

"Whilst mindful of the instability caused by current macroeconomic events, we remain on track for the full year and confident of our medium-term prospects."

Secure Trust said its interim results for the six months ending 30 June would be released on 13 August.

At 1018 BST, shares in Secure Trust Bank were up 2.72% at 1,286p.

Reporting by Josh White for Sharecast.com.

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