Secure Trust Bank Regulatory News (STB)

PRESS RELEASE

Secure Trust Bank PLC

LEI: 213800CXIBLC2TMIGI76

15 January 2020

For immediate release

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 2019 scheduled for 26 March 2020.

STB has continued to progress its strategic plan with strong control over the cost of risk and continued investment in the motor platform. The Group has delivered further revenue and loan book growth in the second half. This is despite the flat lining of GDP growth last autumn which dampened demand for consumer and house building finance across the sector. STB is pleased with its performance against this backdrop and the full year results are expected to be in line with management's and the market's expectations.

The Group has not compromised its lending or pricing disciplines to drive balance sheet growth and will continue to be selective in respect of new lending. 

In December 2019 the BoE announced an increase in the countercyclical capital buffer from 1% of risk weighted assets to 2%, with effect from December 2020 and its intention to consult on offsetting this increase via reductions in variable Pillar 2A add ons, to ensure the levels of capital in the system stay broadly unchanged.

The Group is looking ahead to 2020 with cautious optimism. The PMI survey results published in early January indicate a positive reaction to the General Election result. This is consistent with a recovery in UK equity prices and increased market interest in residential and some classes of commercial property assets. 

The Group enters 2020 with strong new business pipelines, healthy capital and liquidity positions and remains well placed to pursue its strategic priorities and envisages no material change for its guidance for 2020. 

Enquiries:

Secure Trust Bank PLC

Paul Lynam, Chief Executive Officer

Neeraj Kapur, Chief Financial Officer

Mark Stevens, Company Secretary

Tel: 0121 693 9100

Stifel Nicolaus Europe Limited (Joint Broker)

Stewart Wallace

Tel: 020 7710 7600 

Canaccord Genuity Limited (Joint Broker)

David Tyrrell

Tel: 020 7523 8000

Tulchan Communications

Tom Murray/Sheebani Chothani

Tel: 020 7353 4200

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, Debt Management and Consumer Mortgages divisions

As at 30 June 2019 the Group's loans and advances to customers totalled £2,278.3 million, customer deposits totalled £2,001.5 million 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.