Secure Trust Bank PLC Trading Statement (1455Z)
May 15 2019 - 8:46AM
UK Regulatory
TIDMSTB
RNS Number : 1455Z
Secure Trust Bank PLC
15 May 2019
PRESS RELEASE
15(th) May 2019
SECURE TRUST BANK PLC
2019 Annual General Meeting Trading Update
In advance of the Annual General Meeting of Secure Trust Bank
PLC (the 'Bank' or 'STB' or 'Group') to be held at 3.00 pm today
the Board of STB provides the following update on trading in the
first four months of the year.
The Group has made a strong start to the year with earnings
slightly ahead of management's expectations for the first four
months. The Group entered 2019 with positive business momentum,
healthy capital positions and very strong liquidity. The trading
performance in the first four months of the year has given the
Board further confidence in meeting the Group's full year targets
notwithstanding continued political and economic uncertainty. The
Group's lending portfolio remains appropriately positioned for
current economic conditions and the short duration nature of the
asset portfolio means the Group can react quickly to both market
opportunities and threats.
The SME businesses have continued to grow notwithstanding some
transactions having been deferred by customers as they await
clarity on Brexit. There has been no discernible change in the
behaviour of the Bank's consumer customers who are benefitting from
low inflation, record employment and rising earnings.
Credit quality trends have been stable with the benefits of the
strategic repositioning of the balance sheet continuing to come
through. The short term economic outlook has improved but remains
uncertain. As a result the Bank will continue to adopt a cautious
stance in respect of its credit risk appetite.
The Group has been presented with additional opportunities to
successfully deploy its capital and funding in the first four
months of 2019 as a result of a number of non-bank lenders citing
difficulties in obtaining or renewing credit lines. The resulting
curtailment, and in some cases ceasing, of new business by these
lenders has helped support record levels of monthly new business
volumes in Motor Finance and Retail Finance in April. The new
business in Retail Finance has been driven, to an extent, by a
substantial increase in football and rugby season ticket
finance.
Capital and funding have remained strong. The Bank launched its
first ever cash ISA savings products to coincide with the new tax
year in April and the demand from the customers targeted is
encouraging. The Bank will continue to leverage the investment in
the new deposit platform launched in 2017 to broaden the pools of
deposit liquidity it can target whilst proactively managing net
interest margins.
The Board considers that the continued unwinding of the Funding
for Lending and Term Funding Schemes will see more non-bank lenders
facing challenges in terms of access to funding and its cost. This
could present further opportunities for the Group including
potentially for M&A. Market dynamics are being carefully
monitored and the Group continues to consider a range of inorganic
opportunities. The Group will continue to be disciplined in its
approach to opportunities, whether organic or inorganic,
prioritising the creation of sustainable, long-term shareholder
value.
-ENDS-
Enquiries:
Secure Trust Bank PLC
Paul Lynam, Chief Executive Officer
Neeraj Kapur, Chief Financial Officer
Tel: 0121 693 9100
Stifel Nicolaus Europe Limited, trading as KBW (Joint
Broker)
Robin Mann
Gareth Hunt
Stewart Wallace
Tel: 020 7710 7600
Canaccord Genuity Limited (Joint Broker)
Sunil Duggal
David Tyrrell
Tel: 020 7523 8000
Tulchan Communications
Suniti Chauhan
Sheebani Chothani
Tel: 020 7353 4200
Forward looking statements
This document contains forward looking statements with respect
to the business, strategy and plans of Secure Trust Bank PLC
("Secure Trust Bank" or the "Group") and its current goals and
expectations relating to its future financial condition and
performance. Statements that are not historical facts, including
statements about Secure Trust Bank 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. Secure Trust Bank'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 Secure Trust Bank's
control, 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 hereof, and Secure Trust Bank 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 67 year trading track record.
Secure
Trust Bank operates principally from its head office in
Solihull, West Midlands, and had 862 employees (full-- time
equivalent) as at 31 December 2018. The Group's diversified
lending portfolio currently focuses on two sectors:
(i) Business Finance through its Real Estate Finance, Asset
Finance and Commercial Finance divisions,
(ii) Consumer Finance through its Motor Finance and Retail
Finance divisions
As at 31 December 2018 the Group's loans and advances to
customers totalled GBP2,028.9 million, customer deposits
totalled
GBP1,847.7million and the Group's total customer base was well
over 1 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.
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END
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