Secure Trust Bank Regulatory News (STB)

PRESS RELEASE

15th May 2019

SECURE TRUST BANK PLC

2019 Annual General Meeting Trading Update

In advance of the Annual General Meeting of Secure Trust Bank PLC (the 'Bank' or 'STB' or 'Group') to be held at 3.00 pm today the Board of STB provides the following update on trading in the first four months of the year.

The Group has made a strong start to the year with earnings slightly ahead of management's expectations for the first four months. The Group entered 2019 with positive business momentum, healthy capital positions and very strong liquidity. The trading performance in the first four months of the year has given the Board further confidence in meeting the Group's full year targets notwithstanding continued political and economic uncertainty. The Group's lending portfolio remains appropriately positioned for current economic conditions and the short duration nature of the asset portfolio means the Group can react quickly to both market opportunities and threats.

The SME businesses have continued to grow notwithstanding some transactions having been deferred by customers as they await clarity on Brexit. There has been no discernible change in the behaviour of the Bank's consumer customers who are benefitting from low inflation, record employment and rising earnings.

Credit quality trends have been stable with the benefits of the strategic repositioning of the balance sheet continuing to come through. The short term economic outlook has improved but remains uncertain. As a result the Bank will continue to adopt a cautious stance in respect of its credit risk appetite.

The Group has been presented with additional opportunities to successfully deploy its capital and funding in the first four months of 2019 as a result of a number of non-bank lenders citing difficulties in obtaining or renewing credit lines. The resulting curtailment, and in some cases ceasing, of new business by these lenders has helped support record levels of monthly new business volumes in Motor Finance and Retail Finance in April. The new business in Retail Finance has been driven, to an extent, by a substantial increase in football and rugby season ticket finance.

Capital and funding have remained strong. The Bank launched its first ever cash ISA savings products to coincide with the new tax year in April and the demand from the customers targeted is encouraging. The Bank will continue to leverage the investment in the new deposit platform launched in 2017 to broaden the pools of deposit liquidity it can target whilst proactively managing net interest margins.

The Board considers that the continued unwinding of the Funding for Lending and Term Funding Schemes will see more non-bank lenders facing challenges in terms of access to funding and its cost. This could present further opportunities for the Group including potentially for M&A. Market dynamics are being carefully monitored and the Group continues to consider a range of inorganic opportunities. The Group will continue to be disciplined in its approach to opportunities, whether organic or inorganic, prioritising the creation of sustainable, long-term shareholder value.

-ENDS-

Enquiries:

Secure Trust Bank PLC

Paul Lynam, Chief Executive Officer

Neeraj Kapur, Chief Financial Officer

Tel: 0121 693 9100

Stifel Nicolaus Europe Limited, trading as KBW (Joint Broker)

Robin Mann

Gareth Hunt

Stewart Wallace

Tel: 020 7710 7600

Canaccord Genuity Limited (Joint Broker)

Sunil Duggal

David Tyrrell

Tel: 020 7523 8000

Tulchan Communications

Suniti Chauhan

Sheebani Chothani

Tel: 020 7353 4200

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" 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 862 employees (full‐ time

equivalent) as at 31 December 2018. 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 and Retail Finance divisions

As at 31 December 2018 the Group's loans and advances to customers totalled £2,028.9 million, customer deposits totalled

£1,847.7million and the Group's total customer base was well over 1 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.