Secure Trust Bank Regulatory News (STB)

PRESS RELEASE

Secure Trust Bank PLC

LEI: 213800CXIBLC2TMIGI76

16 October 2019

For immediate release

SECURE TRUST BANK PLC

Q3 2019 Trading Update

Secure Trust Bank PLC and its subsidiaries ("Secure Trust Bank", "STB" or the "Group") provide a trading update in relation to the third quarter ended 30 September 2019.

The Group has traded well during the third quarter with business trends consistent with those highlighted in the interim report. The overall results for the period are in line with management expectations.

Whilst demand for the Group's lending products remained healthy, the Group saw a general slowing in demand in September. This appears consistent with the recent economic data and is considered by the Group to be a function of consumers and businesses becoming more cautious ahead of the 31st October 2019 Brexit date. Given the strong performance over the first three quarters of 2019, the Group remains comfortable with its guidance in respect of the outlook for the full year, although political developments in the coming weeks could impact the UK economy and the Group's results in the final quarter. The Group remains well capitalised and funded.

The introduction of ISAs to the deposit product offering has also introduced further diversity into the deposit base at a lower cost to non ISA deposit products.

On 15 October 2019 the Financial Conduct Authority (FCA) announced plans to ban the way in which some car retailers, and other brokers in the motor finance sector, receive commission. The Group has reviewed the consultation paper issued by the FCA in this respect and does not expect any negative impact on the Group's motor finance business arising from the FCA's planned changes.

The Group considers that its lending portfolio is appropriately positioned for current economic conditions and the short duration nature of the asset portfolio means that the Group can react quickly to both market opportunities and threats. The Group remains selective in respect of new lending activities which are biased towards shorter duration lower risk lending in attractive market segments. This continues to drive profit growth and improve the credit quality of new customer loan originations.

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)

David Tyrell

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 67 year trading track record. Secure

Trust Bank operates principally from its head office in Solihull, West Midlands, and had 956 employees (full‐ time

equivalent) as at 30 June 2019. 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 and Debt Management divisions

As at 30 June 2019 the Group's loans and advances to customers totalled £2,278.3 million, customer deposits totalled

£2,001.5million and the Group's total customer base was well over 1.4 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.