Secure Trust Bank Regulatory News (STB)

PRESS RELEASE

For immediate release

Date: 18 October 2012

Secure Trust Bank PLC

Update on third quarter trading

Secure Trust Bank PLC ("STB") traded well during the quarter ending 30 September 2012. Demand for lending and deposit products remained strong. Cycle finance in particular has seen positive new business levels undoubtedly as a consequence of the Olympics. The bank continues to enjoy favourable funding conditions. Indeed the most recent deposit raising was successfully concluded after raising over £36 million in the first 8 days in August.

STB is progressing an application to be included within the Funding for Lending Scheme and is giving due consideration to the extent, if any, it accesses the discounted funding available, noting it remains highly liquid at this time. In its interim results statement on 26 July 2012 STB reported that, when it released the White Paper on 14 June 2012, the Government signalled that it recognised the competitive challenges facing smaller banks. STB is now engaged with the Government's Banking Reform Team and the Treasury to help them to understand better these issues.

In common with other banks, and as previously disclosed, STB is being inundated with entirely spurious claims originated by claims management companies (CMCs). The operational impact of having to respond to huge volumes of baseless claims is an unwelcome distraction.

In September 2012 STB became the first bank in the UK to be awarded the Customer Service Excellence Award. This award was introduced by the Cabinet Office in 2010 to replace the former Charter Mark. Then, in October 2012 STB was awarded a 4 star Fairbanking Mark for its current account. These positive achievements mark the culmination of 18 months of hard work to improve the way in which STB interacts with its customers and the quality of the range of services it provides.

Everyday Loans has been successfully integrated with the Group. A new branch has now opened in Middlesbrough and others will follow reflecting our growth plans for this business. The costs associated with opening new branches are relatively modest and they typically become profitable within 12 months.

STB continues to work on a diverse pipeline of organic and external business opportunities as it progresses its growth strategy.

-ENDS-

Enquiries:

Henry Angest, Non Executive Chairman Tel: 020 7012 2400

Andrew Salmon, Non Executive Director

Paul Lynam, Chief Executive Tel: 0121 693 9100

Neeraj Kapur, Chief Finance Officer

David Marshall, Director of Communications Tel: 020 7012 2400

Canaccord Genuity Hawkpoint Limited (Nominated Adviser) Tel: 020 7665 4500

Lawrence Guthrie

Sunil Duggal

Canaccord Genuity Limited (Broker) Tel: 020 7523 8000

Roger Lambert

Lucy Tilley

Pelham Bell Pottinger Tel: 020 7861 3232

Ben Woodford

Dan de Belder