Secure Trust Bank Regulatory News (STB)

PRESS RELEASE

Secure Trust Bank PLC

LEI: 213800CXIBLC2TMIGI76

14 January 2022

For embargoed release at 07.00 am

SECURE TRUST BANK PLC

Pre Close Trading Update

Record level of new business lending in the quarter

Secure Trust Bank PLC and its subsidiaries ("Secure Trust Bank", "STB", or the "Group") today issues a pre close trading update(1) ahead of its annual results announcements for the year ended 31 December 2021 scheduled for 24 March 2022.

New Business Lending

Total new business lending increased by 27.9% in the fourth quarter, to a record £471.1m, which was 51.5% (£160.1m) higher than Q4 2020.

Record levels of new lending were achieved in each of Real Estate Finance, Vehicle Finance and Retail Finance. In Real Estate Finance the performance followed strong demand for the Group's green loan products. The performance of the Consumer Businesses was driven by strong pre-Christmas trading in Retail Finance and the continued benefit of expansion into broader market segments in Vehicle Finance.

Core Net Loan Book (2)

The core net loan book grew strongly in the fourth quarter and by double digits compared to Q4 2020. Growth in the quarter was higher than the run-rate required to achieve the Group's medium term lending book growth target of a 15%+ compounded annual growth rate (CAGR).

David McCreadie, Chief Executive Officer:

"I am delighted that we delivered a strong increase in net lending during the final quarter of 2021 with the run-rate of net loan book growth ahead of our recently announced medium term target of 15%+ CAGR.

We achieved record levels of new business across a number of our businesses and, as set out at our recent Capital Markets Day, are demonstrating that we have considerable potential to scale further in the years ahead in attractive, specialist lending markets. Growth opportunities include the recently launched Personal Contract Purchase product in Vehicle Finance and our planned launch into Digital Buy Now Pay Later, accelerated by the acquisition of AppToPay announced in November 2021.

While we remain mindful of the continued impacts of the pandemic on the macroeconomic environment, our performance has heightened our confidence in delivering our growth ambitions as we continue our journey to become the most trusted specialist lender in the UK.

I would like to thank all of our colleagues for their continued commitment in helping our customers and supporting each other during 2021."

(1) The Q4 2021 information in this announcement is unaudited.

(2) Core excludes the Asset Finance and Consumer Mortgages loan books which were each disposed of in July 2021.

Enquiries:

Secure Trust Bank PLC

David McCreadie, Chief Executive Officer

Rachel Lawrence, Chief Financial Officer

Tel: 0121 693 9100

Stifel Nicolaus Europe Limited (Joint Broker)

Robin Mann

Gareth Hunt

Stewart Wallace

Tel: 020 7710 7600

Canaccord Genuity Limited (Joint Broker)

Andrew Potts

Tel: 020 7523 8000

Forward looking statements

This document contains forward looking statements about the business, strategy and plans of STB and its current objectives, targets and expectations relating to its future financial condition and performance. Statements that are not historical facts, including statements about STB's 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. STB'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 STB's control, the COVID-19 pandemic, expected credit losses in certain scenarios involving forward looking data, 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 of this document, and (except as required by law or regulation) STB 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 70-year trading track record. Secure Trust Bank operates principally from its head office in Solihull, West Midlands, and had 940 employees (full‐ time equivalent) as at 30 June 2021. The Group's diversified lending portfolio currently focuses on two sectors:

(i) Business Finance through its Real Estate Finance and Commercial Finance divisions,

(ii) Consumer Finance through its Vehicle Finance, Retail Finance and Debt Management divisions.

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.