Secure Trust Bank PLC AGM Voting Results and Trading Update (0796E)
May 03 2017 - 8:57AM
UK Regulatory
TIDMSTB
RNS Number : 0796E
Secure Trust Bank PLC
03 May 2017
03 May 2017
SECURE TRUST BANK PLC
2017 Annual General Meeting Voting Results and Trading Update
2017
At the Annual General Meeting of Secure Trust Bank PLC (the
"Bank" or "STB") to be held today at 3.00 p.m. the Chairman, Lord
Forsyth, will provide the following update on trading in the first
quarter of the year.
"There has been no material change to the underlying performance
of the business in the first quarter of 2017 and earnings were in
line with management's expectations.
The Bank retains a cautious stance with respect to new lending
given the economic environment, the inflation forecasts and what it
regards as excessively aggressive competition in some markets.
Since the Bank's last disclosures the regulators have announced
they are reviewing some of these competitive dynamics. The Bank
welcomes this development.
STB has continued to reorient its consumer lending. It no longer
originates unsecured personal loans, has ceased originating new
subprime motor finance lending and is now concentrating on
originating higher volumes of lower risk lower margin motor finance
business. The proportion of new lending written in this category
during Q1 2017 was over 30% higher than in Q4 2016. This shift is
expected to improve the overall motor portfolio quality as it works
through to the back book. Our retail finance business, V12, has
traded strongly during the first quarter and remains focused on
shorter duration prime lending.
The debt collection business, Debt Managers (Services) Ltd
("DMS"), has seen operating profit more than double in the first
quarter of this year compared to the same period last year
therefore the Bank has decided to bring forward planned investment
in people and IT to strengthen its competitive position.
The Bank's SME lending activities have traded well in the
period. A number of higher Loan to Gross Development Value (LTGDV)
prime Central London residential property development loans have
been satisfactorily repaid, in some cases earlier than planned, at
the Bank's request. These early redemptions have a short term
income impact and remove the Bank's related risk exposure should
the Central London prime residential market continue to weaken.
They have been replaced with lower margin and modestly leveraged
residential investment lending. Overall Real Estate Finance and
Invoice Finance lending balances have risen in the period. The Bank
retains a cautious stance towards asset finance given the very
aggressive competitive forces at play in this market.
The recent improvement in the share price of Non-Standard
Finance plc has allowed the Bank to sell, at a profit, all the
23,529,412 NSF shares issued to the Bank in connection with the
sale of the Everyday Loans Group.
With very strong capital and funding positions the Board
believes that the Bank is well positioned to navigate the current
economic environment whilst seeking to take advantage of any
attractive opportunities that may arise. The Board continues to see
potential to grow the Bank's lending portfolio in line with its
ambition and has a clear growth strategy and a pipeline of organic
and external new business opportunities."
-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)
Andrew Buchanan
Sunil Duggal
Tel: 020 7523 8000
Bell Pottinger
Dan de Belder
Molly Stewart
Tel: 020 3772 2500
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 64 year trading track record. Secure Trust
Bank operates principally from its head office in Solihull, West
Midlands, and had 735 employees (full-time equivalent) as at 31
December 2016. The Group's diversified lending portfolio currently
focuses on three sectors (i) Business Finance through its Asset
Finance, Commercial Finance and Real Estate Finance Divisions (ii)
Consumer Finance through its Motor Finance and Retail Finance
Divisions (iii) Mortgages through its intermediary dedicated
Mortgage Division.
As at 31 December 2016 the Group's loans and advances to
customers totalled GBP1,321.0 million, customer deposits totalled
GBP1,151.8 million and the Group's total customer base exceeded
750,000.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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