Further progress towards £4 billion loan book and cost income targets

Secure Trust Bank PLC (‘STB’ or the ‘Group’), a leading specialist lender, is pleased to announce its interim results for the six months to 30 June 2024. STB continued to build momentum, delivered solid income growth, managed costs effectively and delivered a significant increase of 12.4% in adjusted profit before tax pre impairments¹.

STB has continued to grow its loan book towards the £4 billion target, the level at which it expects to deliver an adjusted² return on average equity of 14-16%. Our net loan book growth was 3.2%, to £3.4 billion (FY 2023: £3.3 Billion).

Financial Highlights³

Loan book growth of 3.2% (8.3% on HY 2023)
Total profit before tax increased by 14.0% to £17.1 million (HY 2023: £15.0 million)
Adjusted² profit before tax pre impairments up 12.4% to £45.2 million (HY 2023: £40.2 million)
Adjusted² profit before tax of £17.1 million (HY 2023: £17.4 million)
Net Interest Margin (‘NIM’) at 5.3% (HY 2023: 5.4%), with a period end exit rate of 5.4%
Adjusted² cost income ratio improved by 220 bps to 53.7% (HY 2023: 55.9%)
Annualised cost saving target increased from £5 million to £8 million¹ by year-end 2025
Tangible book value per share increased 3.1% to £18.36 per share (FY 2023: £17.80)

David McCreadie, Chief Executive, said:

“Secure Trust Bank continues to make progress towards its medium-term targets and strategic priorities. In the first half, we have delivered solid loan book growth and managed cost increases through our cost optimisation programme, Project Fusion. Today we are upgrading our cost savings target¹ for Project Fusion from £5 million to £8 million.

The business has delivered a double digit increase in our adjusted² profit before tax pre impairments. We have continued to grow our loan book towards the £4 billion target, the level at which we expect to deliver an adjusted²return on average equity of 14-16%. As such, we remain confident in achieving our medium-term targets.”

Footnotes:

1. £4.4 million cost savings relative to operating expenses for the 12 months ended December 2021. The remainder of £3.6 million savings (of the £8 million) will be relative to annualised operating expenses for the six months ending 30 June 2024.
2. Adjusted metrics exclude exceptional items of £nil (HY 2023: £0.9 million). Details can be found in Note 5 to the Interim Financial Statements.
3. Performance metrics presented relate to continuing operations unless otherwise stated. For further details see the Appendix to the 2024 Interim Report.

This announcement together with the associated investors’ presentation are available on: www.securetrustbank.com/results-reports/results-reports-presentations

LEI: 213800CXIBLC2TMIGI76

View source version on businesswire.com: https://www.businesswire.com/news/home/20240814530151/en/

Camarco
Ed Gascoigne-Pees, Geoffrey Pelham-Lane
securetrustbank@camarco.co.uk
+44(0)7591760844

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