Secure Trust Bank Regulatory News (STB)

PRESS RELEASE

Secure Trust Bank PLC

LEI: 213800CXIBLC2TMIGI76

12 July 2021

Embargoed release 07.00am

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

Trading Update

Further to the Company's trading update of 12 May 2021, the positive trends experienced in the first quarter have continued into the second quarter. There is sufficient evidence of a recovery that STB's IFRS 9 impairment provisions in the current financial year are expected to be significantly lower than the preceding year. As a result, the Board now expects profit before taxation for the full year ending 31 December 2021 to be materially ahead of current market expectations(1) and to be above the top end of the range of those expectations.

The Board remains cautious on the near to medium term UK economic outlook and will maintain a prudent provisioning policy, in case economic conditions worsen in the second half. The benefit arising from reduced provisioning levels is expected to be less marked in the financial year ending 31 December 2022, given the increasing lending activity and the IFRS 9 provisioning required on new lending.

The Group will announce its interim results for the six months ended 30 June 2021 on 5 August 2021.

Note (1) The Board considers current market expectations for the financial year ending 31 December 2021 are an average profit before tax of circa £29.5m within a range from circa £26.4m to £36.8m.

‐ENDS-

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)

Emma Gabriel

Tel: 020 7523 8000

About STB:

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 1,003 employees (full‐ time equivalent) as at 31 December 2020. 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, Debt Management and Consumer Mortgages divisions.

As at 31 December 2020 the Group's loans and advances to customers totalled £2,358.9 million, customer deposits totalled £1,992.5 million and the Group's total customer base was well over 1.5 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.

Further information:

This announcement (including any information referred to in this announcement) contains statements which are, or may be deemed to be, "forward-looking statements". Forward-looking statements are prospective in nature and are not based on historical facts, but rather on current

expectations and projections of STB about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. STB cannot give assurance that such expectations will prove to be correct. You are cautioned not to place any reliance on these forward-looking statements. Other than in accordance with its legal or regulatory obligations, STB expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.