Secure Trust Bank Regulatory News (STB)

Secure Trust Bank PLC

17 January 2018

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 2017 scheduled for 22 March 2018.

Trading in the final period of the year has been in line with management's expectations and as a result the full year results are expected to be in line with market expectations.

The Group continued to reposition its lending portfolios away from higher risk consumer lending during the final quarter of 2017, culminating in the profitable sale of the residual unsecured personal loan book in the final quarter (as announced on 21 December 2017). Overall customer numbers and the associated Retail Finance, Motor Finance, Mortgages and SME lending balances have continued to grow, in a carefully controlled manner, during the period.

The Group has also made further progress during the period with its preparation for the implementation of IFRS9 as the regulatory and transitionary treatments have been clarified. The Group will provide further guidance on IFRS9 implementation in due course.

The changes to the capital regulations that have now been announced by the Basel Committee on Banking Supervision are welcomed by the Group and once fully implemented should go a long way to levelling the regulatory capital playing field especially in the owner occupied residential mortgage market, which is the largest of the UK lending markets.

Following a year of very significant transition and new proposition development, STB enters 2018 well placed to pursue its strategic priorities through developing its business model organically and pursuing M&A opportunities.

Enquiries:

Secure Trust Bank PLC

Paul Lynam, Chief Executive Officer

Neeraj Kapur, Chief Financial Officer

Alan Karter, Company Secretary

Tel: 0121 693 9100

About the Company:

Secure Trust Bank is an established, well‐funded and capitalised UK retail bank with a 65 year trading track record. Secure

Trust Bank operates principally from its head office in Solihull, West Midlands, and had 743 employees (full‐ time equivalent) as at 30 June 2017. The Group's diversified lending portfolio currently focuses on three sectors (i) Business Finance through its Real Estate Finance, Asset Finance and Commercial Finance divisions, (ii) Consumer Finance through its Motor Finance and Retail Finance divisions and (iii) Consumer Mortgages.

As at 30 June 2017 the Group's loans and advances to customers totalled £1,509.6 million, customer deposits totalled £1,325.8 million and the Group's total customer base exceeded 800,000.