Secure Trust Bank - Edison Group

Overview
Price performance
Financials
Research
Thematics

Secure Trust Bank (STB) is a well-established specialist bank addressing niche markets within consumer and business lending.

Latest Insights

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Financials |
Update

06.02.24

Secure Trust Bank — FY23 underlying PBT broadly maintained

Financials |
Update

21.11.23

Secure Trust Bank — V12 Retail Finance to support refreshed targets

Financials |
Update

04.09.23

Secure Trust Bank — One-off impairment masks underlying PBT beat

Financials |
Flash note

19.05.23

Secure Trust Bank — Positioned for strong growth in FY23

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Sector

Financials

Equity Analyst

Key Management

David McCreadie

CEO
Phil Clark

Investor relations
Rachel Lawrence

CFO

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	(53.2)	(55.9)	(40.0)
Relative	(51.5)	(54.8)	(44.5)
52 week high/low	894.0p/384.0p

Financials

Secure Trust Bank’s (STB’s) Q423 trading update showcased a robust performance with net loans of £3.3bn, up 13.6% y-o-y. The bank reaffirmed that it is on track to deliver £5m in annualised cost savings in FY24 through its ongoing cost optimisation programme. Despite rising deposit costs, STB’s net interest margin (NIM) remained flat with H123 at 5.4%. STB’s disclosure of modest exposure to discretionary commissions in motor finance lending should be a relief to investors, as the ongoing Financial Conduct Authority (FCA) investigation has been an uncertainty overhanging the sector. Our underlying continuing PBT estimates fell by 2% on marginally lower NIM expectations. Meanwhile, we have reduced our continuing PBT estimate by 7% to £41.7m as we have included a £2.3m exceptional cost related to the FCA’s Borrowers in Financial Difficulty industry-wide review. Our FY24 estimates are unchanged.

Y/E Dec	Revenue (£m)	EBITDA (£m)	PBT (£m)	EPS (p)	P/E (x)	P/CF (x)
2021A	148.9	N/A	55.9	239.4	1.6	N/A
2022A	169.6	N/A	39.0	174.7	2.2	N/A
2023E	186.5	N/A	41.7	154.9	2.5	N/A
2024E	221.8	N/A	55.0	211.4	1.8	N/A

Flash note

Financials

14.03.22

Secure Trust Bank — Selling debt purchase loan book

Flash note

Financials

14.01.22

Secure Trust Bank — Pre-close shows loan growth ahead of forecasts

Update

Financials

30.11.21

Secure Trust Bank — New tech and lower impairments

Flash note

Financials

09.11.21

Secure Trust Bank — Capital markets day optimism

Flash note

Financials

21.10.21

Secure Trust Bank — Momentum building in Q3

Update

Financials

11.08.21

Secure Trust Bank — Good news as flagged

Flash note

Financials

26.07.21

Secure Trust Bank — Drawing the line under mortgages exit

Flash note

Financials

14.07.21

Secure Trust Bank — Upbeat pre-close interims update

Flash note

Financials

17.05.21

Secure Trust Bank — Benign Q1 trading update

Outlook

Financials

09.04.21

Secure Trust Bank — Solid FY20, ready for growth

Update

Financials

22.01.21

Secure Trust Bank — Reassuring pre-close

Flash note

Financials

06.01.21

Secure Trust Bank — CEO change in seamless transition

Update

Financials

28.10.20

Secure Trust Bank — Upbeat update

Outlook

Financials

25.08.20

Secure Trust Bank — Resilient numbers

Update

Financials

14.05.20

Secure Trust Bank — Caution after a fine 2019

Flash note

Financials

27.03.20

Secure Trust Bank — Guidance and final 2019 dividend suspended

Update

Financials

15.01.20

Secure Trust Bank — Positive pre-close

Update

Financials

17.10.19

Secure Trust Bank — A reassuring trading update

Update

Financials

09.08.19

Secure Trust Bank — Momentum maintained

Update

Financials

21.05.19

Secure Trust Bank — Upbeat trading update

Update

Financials

01.04.19

Secure Trust Bank — Positive and ready for growth

Update

Financials

18.01.19

Secure Trust Bank — Reassuring update

Update

Financials

18.10.18

Secure Trust Bank — Positive trading update

Update

Financials

15.08.18

Secure Trust Bank — Tangible evidence of repositioning

Update

Financials

12.04.18

Secure Trust Bank — Asset growth set to flow through to earnings

Update

Financials

23.01.18

Secure Trust Bank — Controlled growth

Update

Financials

29.08.17

Secure Trust Bank — Progressing with a prudent approach

Outlook

Financials

31.03.17

Secure Trust Bank — Ready for the next stage

Update

Financials

19.01.17

Secure Trust Bank — Update 19 January 2017

Update

Financials

08.11.16

Secure Trust Bank — Update 8 November 2016

Update

Financials

02.08.16

Secure Trust Bank — Update 2 August 2016

Review

Financials

16.06.16

Secure Trust Bank — Update 16 June 2016

Outlook

Financials

26.04.16

Secure Trust Bank — Update 26 April 2016