(Sharecast News) - Specialist lender Secure Trust Bank reported a positive first quarter in a trading update on Thursday, with growth in net lending balances and progress in cost-saving initiatives under Project Fusion.
The London-listed firm said its results for the period matched management expectations.
During the quarter, its net loan book increased 1.7%, up 11.9% year over year.
Real estate finance showed robust growth, with a 3.8% increase in the quarter.
However, commercial finance balances declined due to a challenging market environment.
Vehicle finance and retail finance balances rose 1.6% and 1.4%, respectively.
Customer deposits also grew 1.7% during the quarter, supporting the bank's lending activities.
Compared to the first three months of 2023, deposit balances saw a significant increase of 14.8%.
"The group continued to grow net lending in the quarter and is trading in line with management expectations," said chief executive officer David McCreadie.
"I am pleased that the positive momentum from last year has continued and that we have taken another step towards our £4bn net lending ambition.
"We have seen improved lending quality in retail finance and continued to enhance our collections processes in vehicle finance."
McCreadie said the company had identified other opportunities to streamline operations and generate additional cost efficiencies.
"With the UK economy returning to growth and the likelihood of interest rate reductions improving, we remain confident in delivering on our plans for the full year and our medium term targets."
At 1428 BST, shares in Secure Trust Bank were up 5% at 734.97p.
Reporting by Josh White for Sharecast.com.
Secure Trust (STB)