Secure Trust Bank Regulatory News (STB)

PRESS RELEASE

Secure Trust Bank PLC

LEI: 213800CXIBLC2TMIGI76

21 October 2021

For embargoed release at 07.00 am

SECURE TRUST BANK PLC

Q3 2021 Trading Update

Strong new business lending, now above pre-pandemic levels

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018. 

Secure Trust Bank PLC and its subsidiaries ("Secure Trust Bank", "STB" or the "Group") provide a trading update about the third quarter ended 30 September 2021.

Highlights

New Business

Total new business lending increased by 20.2% in the quarter and 59.3% compared to Q3 2020, continuing the strong recovery and exceeding the pre-pandemic levels of Q1 2020 by over 20%. Business Finance grew by 121% in the quarter as the strong pipeline begins to convert. Consumer Finance maintained the levels achieved in Q2 2021 with Vehicle Finance recording its largest ever month of new business and growing 15% in the quarter.

Net Lending - Core*

The core net loan book grew by 3.3% in the quarter and 7.0% compared to Q3 2020. The Q3 2021 growth reflects growth in Consumer businesses of 3.0% and Business Finance of 3.6%, underlining the ongoing positive momentum across the Group.

Deposits

Customer deposits were 1.3% higher at the end of the quarter to support the growth in the loan book.

Capital Markets Day

STB has scheduled a Capital Markets Day for Wednesday, 3 November 2021, for analysts and institutional investors at which more detail will be shared on its purpose and strategy, its businesses and markets, and its long-term growth ambitions.

David McCreadie, Chief Executive Officer:

"I am delighted with both our operational and financial performance during this period. The Group experienced improved trading activity during the third quarter and new business lending grew very strongly as a result. We have delivered growth in both consumer and business finance and are well positioned to continue to build on this momentum. The Group continues to trade in line with the revised guidance provided in the 12 July 2021 trading update. Our proven agility to navigate economic uncertainties while targeting attractive niche lending sectors provides further confidence in the future."

* Core excludes the Asset Finance and Consumer Mortgages loan books which were 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 69 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 Motor 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.