Secure Trust Bank Regulatory News (STB)

PRESS RELEASE

For Immediate release

14 January 2016

SECURE TRUST BANK PLC

PRE-CLOSE TRADING UPDATE

Secure Trust Bank PLC ("STB" or the "Group") today issues a pre-close trading update ahead of its annual results announcement for the year ended 31 December 2015 scheduled for 17 March 2016.

In addition to announcing the conditional sale of its subsidiary, Everyday Loans Holdings Limited ("ELG"), to Non Standard Finance PLC ("NSF"), the Group has traded well during the final quarter with demand for lending remaining positive across all portfolios. The total customer loan book grew by over 70% during 2015 and closed the year in excess of £1billon.

As a result of this carefully managed growth, STB anticipates its full year results will be in line with market expectations, allowing for one off costs relating to the ELG transaction which are not contingent on the transaction completing.

Consumer lending balances have grown in line with management's strategy to focus more on Retail and Motor Finance than on personal unsecured loans. All three portfolios have grown with overall new consumer lending business volumes materially higher than for 2014.

The development of the Group's SME lending activities has continued throughout 2015. The Group has seen strong demand for its Asset Finance, Invoice Finance and Real Estate Finance offerings from a wide variety of business customers. The market dynamics of this sector remain positive, with the Finance and Leasing Association announcing that gross lending to businesses in the twelve months to November 2015 grew by 9.6%, with lending to SMEs growing at a faster rate than for larger corporates.

The Group's total new lending volumes written during 2015 are over 65% higher than the prior year. The Group's capital and funding levels remain strong and will be considerably strengthened upon the completion of the ELG divestment. This should increase the equity base of the Group by circa £115m. On 6 January 2016, as scheduled, NSF shareholders approved their proposed acquisition of ELG. The transaction remains subject to regulatory approval with completion expected in the first quarter of 2016.

STB continues to work on a range of organic and external business opportunities.

The UK economy continues to grow as reflected in record high levels of employment and healthy demand for finance from consumers and businesses. The successful completion of the ELG transaction will significantly increase the capital base of the bank which will both support the strong ongoing organic growth of the loan book whilst broadening the range of strategic options available to the Group. Against this background STB believes it is well positioned to sustain its positive progress over the coming period.

-ENDS-

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