Helping more
consumers and
businesses
fulfil
their ambitions
Annual Report & Accounts 2025
In this report
Financial highlights
Strategic Report
About us
1
2025 Highlights
2
Group at a glance
4
Chair’s statement
7
Chief Executive’s statement
9
Key Performance Indicators
13
Financial review
14
Business review
20
Market review
28
Principal risks and uncertainties
30
Viability and going concern
40
Managing our business responsibly
42
Engaging with our stakeholders
42
Environmental, Social and
Governance strategy
45
Climate-related financial disclosures
54
Non-financial and sustainability
information statement
66
Corporate Governance
Governance at a glance
68
Chair’s introduction
70
Board leadership
72
Governance framework
75
Corporate Governance report
76
Nomination Committee report
83
Audit Committee report
86
Risk Committee report
93
Directors’ Remuneration Report
97
Proposed Directors’
Remuneration Policy
116
Directors’ report
128
Directors’ responsibility statement
134
Independent Auditor’s report to the
members of Secure Trust Bank PLC
135
Financial Statements
Consolidated statement of
comprehensive income
146
Consolidated and Company statement
of financial position
147
Consolidated and Company statement
of changes in equity
148
Consolidated statement of cash flows
149
Company statement of cash flows
150
Notes to the consolidated
financial statements
151
Five-year summary (unaudited)
195
Appendix to the Annual Report
(unaudited)
196
Other Information
Glossary
200
Corporate contacts and advisers
202
Pages 1 to 67 form the Strategic Report. It includes our marketreview, strategy, financial review
and a business review for each of the lines of business. Pages 128 to 133 form the Directors’ report.
All key performance indicators are presented on a continuing basis, unless otherwise stated.
Further information on discontinued operations is included in Note 10 to the Financial Statements.
Adjusted metrics exclude exceptional items. Further information on exceptional items are included
in Note 8 to the Financial Statements.
Cost income ratio
45.2%
2024: 47.4%
Customer lending
£3.3bn
2024: £3.1bn
New business
£2.1bn
2024: £1.8bn
Customer deposits
£3.5bn
2024: £3.2 billion
Continuing profit before tax
£59.3m
2024: £59.4m
Return on average equity
14.3%
2024: 14.6%
Total profit before tax
£27.5m
2024: £29.2m
Common Equity Tier 1 ratio
12.9%
2024: 12.3%
About us
We are an award-winning
UK specialist lender,
providing savings accounts
and lending services to
1.5 million customers.
Our purpose is to help more consumers
and businesses fulfil their ambitions
and our vision is to be the most trusted
specialist lender in the UK.
We have been helping consumers
and businesses fulfil their ambitions
for over 70 years.
Find out more about
us on our website:
securetrustbank.com
Secure Trust Bank PLC Annual Report & Accounts 2025
1
Strategic Report
Corporate Governance
Financial Statements
Other Information
Retail Finance
Over 475k
customers registered with
the Retail Finance V12 app
Find out more about Retail Finance
on pages 20 and 21.
Real Estate Finance
£1.5bn
loans and advances to customers
Find out more about Real Estate
Finance on pages 22 and 23.
2025 highlights
Our progress
in 2025
In 2025, we moved forward in our mission
to help consumers and businesses turn
ambition into reality. We streamlined
the business, made significant strategic
decisions, and remained committed to
serving our customers.
Secure Trust Bank PLC Annual Report & Accounts 2025
2
Strategic Report
Corporate Governance
Financial Statements
Other Information
Customer deposits
£3.5bn
supporting lending growth
in our continuing businesses
Find out more about Savings
on page 27.
2025 highlights
continued
Digital-first approach
Over 99%
of Savings customers banking online, and new
mobile app will enhance customer experience
Find out more about Savings
on page 27.
Commercial Finance
172%
new business volume growth
Find out more about Commercial
Finance on pages 24 and 25.
Secure Trust Bank PLC Annual Report & Accounts 2025
3
Strategic Report
Corporate Governance
Financial Statements
Other Information
Our strengths
Specialist
Expert
Diverse
Ambitious
Our vision
To be the most
trusted specialist
lender in the UK
Our purpose
To help more
consumers and
businesses fulfil
their ambitions
Group at a glance
Our strategy
In 2025 we undertook a strategic review to ensure the Group is positioned for long-term, sustainable
growth. This work assessed our markets, capabilities and operating model, and informs a refreshed set
of strategic priorities to be introduced in 2026.
Please see our 2025 investor presentation at
www.securetrustbank.com/investor-relations
Our values
Customer
Focused
Risk
Aware
Future
Orientated
Teamwork
Ownership
Performance
Driven
Our 2025 strategic priorities
Optimising for growth
Simplify
Focus on core business units and use technology to deliver
efficiency and better operational processes
Enhance customer experience
Improve the customer journey to increase retention and attract
new customers to gain market share
Leverage networks
Take advantage of our strong partnerships with introducers
to drive growth
Enabled by technology
Take advantage of recent investments within our technology
platforms to automate processes and streamline and enhance
customer experience for our business partners via integration and for
our end customers through self-service
Secure Trust Bank PLC Annual Report & Accounts 2025
4
Strategic Report
Corporate Governance
Financial Statements
Other Information
Group at a glance
continued
Our business model
Our strengths
1. Specialist
Focus on attractive returns
in our continuing markets
2. Expert
Strong market expertise,
relationships and
digital capabilities
3. Diverse
Diverse portfolios in
consumer and
business lending
4. Ambitious
Clear opportunities for
growth and strategy for
long-term value creation
Underpinned by
our values
How we do it
2025 in numbers
£3.8 billion total funding
£3,510m
Wholesale
funding
Deposits from
customers
£200m
Tier 2
debt
£90m
£3.3 billion continuing
£0.4 billion discontinued
Retail
Finance
£1,467m
Real Estate
Finance
£1,467m
Commercial
Finance
£362m
Vehicle
Finance*
£391m
Customers
Shareholders
and investors
Employees
Business
partners
Regulators
Communities
and society
Delivering value for stakeholders
Note:
*
Secure Trust Bank ceased new lending in Vehicle Finance in July 2025 and completed the sale of the Consumer Vehicle Finance business in February 2026.
Vehicle Finance*
We provided quick and easy
used car finance options at the
point of purchase
Retail Finance
We provide quick and easy finance
options at the point of purchase.
We earn interest and
fee income
Refer to pages 20 and 21.
Real Estate Finance
We lend money against residential
properties to professional landlords
and property developers.
Commercial Finance
Supporting the growth of UK
businesses by providing flexible,
asset-based financing solutions
We earn interest and
fee income
Refer to pages 22 to 25.
What we do
Consumer Finance
Business Finance
Wholesale funding
and investors
We utilise our balance sheet to raise
secured wholesale funds.
We raise and retain capital to
support the growth of our
balance sheet.
We pay interest to investors
and dividends to shareholders
Refer to page 17.
Savings
We offer a full range of customer
savings products including
Access Accounts, Fixed Term
Bonds and ISAs.
We pay interest to
our customers
Refer to page 27.
Loans and advances to customers
Refer to page 26.
Secure Trust Bank PLC Annual Report & Accounts 2025
5
Strategic Report
Corporate Governance
Financial Statements
Other Information
Group at a glance
continued
Our strategic progress against 2025 priorities
Enhance customer experience
1. Improved speed of credit decisions:
90% of Retail
Finance applications auto-decisioned in 6 seconds
(2024: 6 seconds)
2. Upgraded user experience through digital
applications:
New Savings app launched in December
streamlines the customer journey and enhances
digital capabilities
3. Sustained client satisfaction:
Internal surveys recorded
strong scores across Business Finance, and Retail Finance
and Savings Trustpilot score maintained at 4.8 stars
2
(2024: 4.8)
Leverage networks
1. Sustained strong growth in new business lending:
Supported by high levels of client retention and repeat
business in Business Finance, and depth of relationships
in Retail Finance
2. Breadth of partnerships:
Partnering with c.900
retailers across thousands of outlets to drive £1.5 billion
of net lending in Retail Finance
3. Increased market reach:
Strong network of partners
and retailers achieved 8.1% growth in Business Finance
and new business market share of 15.5%
3
in Retail Finance
Simplify
1. Streamlined Group:
Accelerated exit of Vehicle Finance
business has focused capital deployment on higher
returning businesses
2. Delivered cost efficiencies:
Project Fusion, our cost
optimisation programme has delivered c. £8 million
1
of
annualised savings
3. Workplace optimisation:
Consolidation of office
spaces, driving operational efficiencies and contributing
to our ESG strategy
Updating our strategic priorities for 2026 and beyond
Our refreshed strategic ambitions will position the Group for long-term, sustainable growth
Refer to Chief Executive’s statement from page 11.
Enabled by technology
Digital-first operating model:
Over 99% customers
registered for online banking in Savings and over 91%
opting for online account management in Retail Finance
New platforms and partners in Retail Finance:
Integration of additional platforms and partners has
enhanced the Group’s scalability and strengthened
key controls
Seamless customer experience:
Over 475,000
customers registered for the Retail Finance V12 app,
where they are able to access the full product
suite available
Notes:
1. £5.0 million cost savings relative to operating expenses for the 12 months ended December 2021.
The additional £3.0 million savings (of the total £8.0 million) are relative to annualised operating
expenses for the six months ending 30 June 2024.
2. Mark out of 5 based on star rating from 11,220 reviews (2024: 15,527).
3. Source: Finance & Leasing Association: New business values within retail store and online credit:
2025 15.5% (2024: 13.6%). FLA total and Retail Finance new business of £9,094.8m (2024: £9,476.6m)
and £1,407.0m (2024: £1,289.7m) respectively. As published at 31 December 2025.
Secure Trust Bank PLC Annual Report & Accounts 2025
6
Strategic Report
Corporate Governance
Financial Statements
Other Information
Chair’s statement
Strategic change to
strengthen our business
Note:
1. Adjusted metrics exclude exceptional items of
£24.1 million (2024: £9.9 million). Details can
be found in Note 8 to the Financial Statements.
It has been a year of change at Secure
Trust Bank, with the Board having
taken decisive action to strengthen
the business and to lay the foundations
for enhanced shareholder returns.
In June, we appointed a new Chief Executive
Officer (‘CEO’), Ian Corfield, to lead the Group
through the next phase of its growth strategy,
to accelerate the pace of change across the
Group and help drive improved performance.
The Board is pleased with the progress he has
made since his appointment.
In July, we made the difficult decision to
cease lending in our Vehicle Finance business,
which had been loss making, and with additional
recent operational challenges and increased
loan impairments, was materially impacting
our Group performance. In December,
we announced the sale of the Consumer
Vehicle Finance business, which completed in
February 2026. This was an important strategic
milestone and will help to accelerate further
our strategic progress by releasing capital to
invest in our higher returning business areas.
I would like to take this opportunity to thank all
of our Vehicle Finance colleagues, who helped
grow the business despite the increasingly
challenging operating environment, and to
wish them all the very best for the future.
We have refreshed our strategy and simplified
our medium-term targets ensuring the business
is focused on delivering growth and driving
improved returns for our shareholders.
Under our revised strategy we will deploy
capital, with discipline, into our three higher
returning business units; Retail Finance,
Commercial Finance and Real Estate Finance,
supported by funding through our Savings
business. We are focused on developing
adjacent products where we have expertise,
can add value to our customers and business
partners, and leverage technology to ensure
our services can be delivered effectively and
efficiently. We will continue to have a rigorous
approach to cost management, as we right-size
the business following the sale of Consumer
Vehicle Finance, and further improve our
cost income ratio.
We are confident that the strategic decisions
taken will support the sustainable growth of
our business, deliver improved performance
and increased return on equity.
Business performance
Adjusted
1
total profit before tax for the year
ended 31 December 2025 increased by 32.0%
to £51.6 million (2024: £39.1 million). This was
strong year-on-year growth, however, it was
below our expectations for the year with
performance once again impacted by the
volatility in impairments within our legacy
Vehicle Finance business.
Total statutory profit before tax decreased
slightly to £27.5 million (2024: £29.2 million).
Statutory profit was negatively impacted by
exceptional costs incurred due to the decision
to cease lending within our Vehicle Finance
business and the additional provision
booked following the publication of the
FCA’s consultation on the proposed redress
scheme for motor finance commissions.
Whilst we appreciate the additional certainty
the FCA’s redress scheme will bring, we believe
the proposed scheme is not aligned with the
Supreme Court judgment in Johnson v
FirstRand. If implemented in the form
proposed, we believe the scheme will result
in redress also being paid to customers who
received competitive finance and were not
harmed and will unfairly impact lenders,
“We are confident that the strategic decisions
taken will support the sustainable growth of our
business, deliver improved performance and
increased return on equity.”
Jim Brown
Chair
Secure Trust Bank PLC Annual Report & Accounts 2025
7
Strategic Report
Corporate Governance
Financial Statements
Other Information
particularly those providing near prime
financing through specialist brokers operating
competitive panels of lenders. We provided a
robust response (supported by analysis of our
data) to the consultation, including setting out
how customers who received competitive
finance were not harmed.
Capital and shareholder returns
On a total basis, adjusted
1
return on average
equity was 10.4% (2024: 8.0%); however, if the
legacy Vehicle Finance business is excluded,
the adjusted
1
return on average equity for the
continuing business was 14.3% (2024: 15.0%).
The returns generated by the continuing
business, and the plans to increase these
further, are positive indicators for the
Group’s ability to deliver a return on average
equity of over 16% in line with our revised
medium-term targets.
We have a strong capital position, which has
increased during 2025 and, as at 31 December
2025, the Group’s Common Equity Tier 1 ratio
was 12.9% (2024: 12.3%). This ratio includes
the additional provision booked for the
estimated redress and costs associated with
the FCA’s redress scheme for historic motor
finance commissions.
It is pleasing to see the progress being made
across the business, starting to be reflected in
the Company’s share price, which increased by
244% over the course of 2025. However, the
share price as at 31 December 2025 was
£12.45, which is still materially below the
Group’s tangible book value of £19.73.
In accordance with the Group’s progressive
dividend policy, the Board has proposed a final
dividend payment of 23.7 pence per share
(2024: 22.5 pence per share), which if approved
by shareholders at the Company’s 2026 Annual
General Meeting, will be paid on 21 May 2026
to those shareholders on the register on
24 April 2026.
Governance
There have been several changes to the Board
this year. David McCreadie, our former CEO,
retired in August 2025 and I would like to thank
David on behalf of the Board, employees and
all stakeholders for the progress he drove
during his tenure as CEO. He oversaw material
increases in our lending balances and helped
simplify and refocus the Group, providing us
with a strong platform for growth.
Our Senior Independent Director and Chair
of the Audit Committee, Ann Berresford,
who had served on the Board for nine years,
stepped down as a Non-Executive Director
on 30 December 2025.
Ann was appointed to the Board in November
2016 and as Audit Committee Chair in
September 2017, and has overseen significant
change across the organisation and enhanced
the operation of the Audit Committee. In her
role as Senior Independent Director, she led the
recruitment for the Chair role, which concluded
in 2024. I would like to extend our thanks and
best wishes to Ann.
Steve Colsell was appointed to the Board
on 12 June 2025 and was appointed Chair
of the Audit Committee with effect from
30 December 2025. Steve brings extensive
financial and accounting experience,
particularly within financial services,
and is already making a strong contribution
to the Board.
In August, Victoria Mitchell was appointed
our designated Non-Executive Director for
employee engagement, taking over from
Paul Myers. We were also delighted to
appoint Julie Hopes, who joined the Board in
October 2024, as our new Senior Independent
Director and Deputy Chair with effect from
30 December 2025.
There have been some changes to our
Executive Committee during the year
(further information on which can be found
on page 12). I would like to thank all former
colleagues for their contribution to Secure
Trust Bank and wish all those commencing
new roles every success.
Outlook
The macroeconomic outlook remains
uncertain with muted growth across the
UK and significant geopolitical uncertainty.
We will need to remain agile to adapt to market
conditions and continue to focus on delivering
good outcomes for our customers, in the
specialist areas we operate.
The strategic changes we have implemented
during the year position us well to drive
improved performance and accelerate our
growth and returns for the benefit of our
shareholders and other stakeholders.
Across the Group we look forward with
optimism and renewed energy.
I would like to thank our customers, business
partners and shareholders for their continued
support and all of our employees who have
worked tirelessly to deliver for our customers
and the business.
Jim Brown
Chair
11 March 2026
Chair’s statement
continued
Common Equity Tier 1 ratio
12.9%
2024: 12.3%
Adjusted
1
return on average equity
10.4%
2024: 8.0%
Note:
1. Adjusted metrics exclude exceptional items of £24.1 million, all relating to Vehicle Finance
(2024: £9.9 million, of which £8.4 million relating to Vehicle Finance). Details can be found
in Note 8 to the Financial Statements.
Secure Trust Bank PLC Annual Report & Accounts 2025
8
Strategic Report
Corporate Governance
Financial Statements
Other Information
“The progress made positions us for stronger
financial performance and enhanced long-term
value creation.”
Ian Corfield
Chief Executive
Strategic actions taken to provide
foundations for higher sustainable returns
Chief Executive’s statement
Our 2025 results reflect a year of
decisive strategic execution to improve
financial performance. While there
have been challenges, I believe the
actions taken in 2025 to refresh the
leadership team, streamline the Group
to operate as one business and to
deploy resources into higher returning
business units will position us to
deliver higher returns and enhanced
long-term value creation.
I was delighted to join Secure Trust Bank
as Chief Executive Officer at the mid-year.
During my first six months I have observed the
many strengths of the Group: deep specialist
credit and financial expertise, strong partner
relationships and flexible platforms. Above all,
I have been struck by the commitment of my
new colleagues to do the right thing for the
business and our customers. I am pleased
with the way they have managed a period
of significant change with resilience. With a
renewed focus on in-office collaboration,
I look forward to further progress in 2026
and beyond.
We have grown our continuing businesses,
with net lending growth of 8.1% to £3.3 billion
(2024: £3.1 billion). Our capital position has
strengthened with a significant improvement
in the Common Equity Tier 1 (‘CET 1’) ratio of
60 bps in the year to 12.9% (2024: 12.3%).
Customer deposits grew in line with the loan
book during the year, supporting robust lending.
These results signal that, despite the need
to guide the market to a lower profit number
during the year, the Group has solid foundations
for the next phase of its development.
Strategic pivot
In July, we made the decision to stop new
lending in our Vehicle Finance business.
In December, we announced the sale of
the Consumer Vehicle Finance business,
which completed as planned on 25 February
2026. The decision to stop new lending was
made following a Groupwide strategic review
in the first half of the year and reflects the
historical financial performance, as well as the
medium-term outlook, of the Vehicle Finance
business. The sale means the Group can now
accelerate its strategic plans. Exiting the
Vehicle Finance business will unlock capital
to reinvest into higher returning opportunities,
supporting long-term growth ambitions and
enable consideration of enhanced shareholder
distributions.
As a result of the first half strategic review,
we identified an optimised model for the
Group to significantly improve shareholder
returns over the medium-term. We have
profitable organic growth opportunities
across our Retail Finance and Business
Finance businesses which have an established
track record of value creation. We are also
well placed to leverage the operational
improvements and will be disciplined in
our approach to investment for growth.
All key performance indicators are
presented on a continuing basis,
unless otherwise stated.
Secure Trust Bank PLC Annual Report & Accounts 2025
9
Strategic Report
Corporate Governance
Financial Statements
Other Information
Financial results – continuing business
The Group delivered a robust set of financial
results in 2025. Notably, we delivered profit
before tax of £59.3 million (2024: £59.4 million),
with stable net interest margin (‘NIM’) of 4.7%
(2024: 4.7%), reflecting strong pricing discipline
in a falling rate environment.
Our cost income ratio improved by 220 bps
to 45.2% (2024: 47.4%) reflecting continued
income growth and disciplined cost
management following the success of our
cost optimisation programme, Project Fusion.
The Group’s operating expenses included
non-recurring costs relating to changes in
senior leadership, with the underlying cost
base stable year-on-year, despite inflationary
pressures. We will maintain our focused
approach to cost management, and optimise
the cost base as we enter into the next phase
of our strategic ambitions.
Growth across our continuing businesses
was driven by continued strong levels of new
business written across all markets, whilst
navigating a year of modest economic growth.
Loans and advances to customers
£3.3bn
2024: £3.1bn
Increased lending balances were supported
by an 8.2% increase in customer deposits to
£3.5 billion (2024: £3.2 billion), where our
product mix remained focused on fixed-term
offerings. We raised c. £1.8 billion of new
deposits in the year, and over 97% of deposits
(by value) are protected by the Financial
Services Compensation Scheme.
The Group was capital accretive in 2025, and
at the end of the period the Group’s CET 1 ratio
increased to 12.9% (2024: 12.3%). This remains
comfortably above the regulatory requirements
and supports the Group’s growth ambitions.
The sale of the Consumer Vehicle Finance
business further strengthens this position, and
improves our CET 1 ratio on a proforma basis
by 180 bps to 14.7%, enabling reinvestment
into our continuing businesses.
Cost of risk increased to 1.0% (2024: 0.8%).
This was driven by impairment charges related
to a few specific cases in Business Finance and
a normalisation of impairment charges in Retail
Finance, following one-off model benefits
in 2024.
Total profit before tax was £27.5 million
(2024: £29.2 million), impacted by the
additional £16.4 million provision relating to
motor finance commissions redress provisions.
The Group also recognised £5.0 million of
exceptional costs relating to the decision to
exit Vehicle Finance.
Total adjusted¹ return on average equity
(‘ROAE’) was 10.4% (2024: 8.0%). Excluding
Vehicle Finance, adjusted
1
ROAE was 14.3%
(2024: 15.0%). These measures indicate that
the right decisions have been implemented to
set the Group on a stronger trajectory for
higher returns.
We made solid progress against the
medium-term targets set in 2023, increasing
net lending, improving cost income ratio, and
maintaining stable NIM, while preserving
robust capital ratios. However, market
conditions have required a reset of strategic
ambitions. Vehicle Finance continued to weigh
on NIM and ROAE, and although our decision
to exit this business will initially reduce lending
balances and NIM, it will improve both the cost
income ratio and ROAE over time. Given these
changes, it is the right time to establish new
medium-term targets focused on higher
returning growth. Looking ahead, we are
targeting c.10% annual growth in our
continuing businesses and an ROAE of more
than 16% in the medium-term. Whilst we
acknowledge risk adjusted margins, pricing
for capital requirements, and effective cost
management are important to delivering
high returns we do not intend to set individual
targets for these measures and will balance
these drivers to deliver against the target ROAE.
Capital and funding
As previously announced, we repaid our Term
Funding Scheme with additional incentives for
SMEs (‘TFSME’) funding in the first half of 2025
ahead of contractual maturity. The Group
continued to make use of sale and repurchase
agreements as part of its funding strategy,
ending the period with an outstanding balance
of £200.0 million (2024: £125.0 million).
The PRA is to introduce the Basel 3.1 standards
in January 2027. At the same time, it will
implement the Strong and Simple capital
regime for Small Domestic Deposit Taker
(‘SDDT’) firms, providing an alternative to
smaller banks to the full Basel 3.1 standards.
The Group has been approved as an SDDT,
and is making good progress in its preparations
for transfer to the new regime. The Group has
factored the anticipated requirements from
the Basel 3.1 and SDDT regimes into its capital
management; these transitions are not
expected to materially impact the Group.
Chief Executive’s statement
continued
Note:
1. Adjusted metrics exclude exceptional items of £24.1 million, all relating to Vehicle Finance
(2024: £9.9 million, of which £8.4 million relating to Vehicle Finance). Details can be found
in Note 8 to the Financial Statements.
Return on average equity
14.3%
2024: 14.6%
Secure Trust Bank PLC Annual Report & Accounts 2025
10
Strategic Report
Corporate Governance
Financial Statements
Other Information
Chief Executive’s statement
continued
Strategic priorities
In 2023 we established four strategic priorities
to guide the Group: simplify, leverage networks,
enhance customer experience and enabled by
technology. These priorities underpinned the
medium-term targets for the Group first
established in 2021. During 2025, we continued
to make good progress against these.
Our commitment to simplification was most
clearly demonstrated by the sale of our
Consumer Vehicle Finance business, allowing
capital deployment to be focused in higher
performing businesses. Project Fusion, our
cost optimisation programme, has concluded,
delivering total annualised savings of
c.£8 million¹ through changes to our
organisational design, streamlining legacy
operational processes and simplifying the
Group. These efficiencies support the next
phase of our growth ambitions. Across the
Group, we have streamlined operations,
including the consolidation of our office
footprint which has generated cost savings
and contributed to our climate commitments.
Our customers are at the core of what we do,
and we continue to use our digital platforms to
enhance customer experience. In December, we
launched our upgraded Savings app, providing a
more streamlined journey and additional
capabilities for self-service. High-quality client
interactions remain core to our relationship-led
model in Business Finance, as evidenced by the
consistently strong customer satisfaction
scores in our internal surveys.
Leveraging our networks remains central to
our business model. The depth of relationships
we hold with retailers and other business
partners, and customers across our markets
enable growth. Our relationships with
approximately 900 retail partners supported
£1.5 billion (2024: £1.4 billion) of net lending
across a diverse range of retailers, both in
sector and size. This supported an increase
in Retail Finance’s market share of new
business to 15.5%² (2024: 13.6%). In Business
Finance, high levels of repeat business and
client retention reflect the strength of our
regional footprint and the relationships we
build with local advisory teams to deliver
bespoke solutions.
Technology has been a key enabler of our
strategic objectives. The Retail Finance app
has surpassed 475,000 registrations, offering
a seamless customer experience and direct
access to our full product suite. Integration of
new platforms and partners has enhanced the
Group’s scalability and strengthened key
controls. We have made continued progress
in our digital-first approach, with over 99% of
customers registered for online banking for
Savings and over 91% opting for online account
management in Retail Finance. This provides
customers with greater control and a more
efficient journey, enhancing their overall
customer experience.
Regulatory and legal interventions
In October 2025, the FCA released a
consultation paper on an industry-wide
compensation scheme relating to motor
finance commissions.
New strategic priorities launched
for 2026 and beyond
Our Investor Update event will outline our refreshed strategic ambitions:
New medium-term targets:
c.10%
Annual growth in continuing businesses
>16%
Return on Average Equity
Product
expansion
Driving growth through
diversification of
product offering
Capital
discipline
Capital allocation
decisions informed by
business credit expertise
and date insights
Effective
digital solutions
Scalable, flexible
technology enables
efficiencies, widens
distribution and
enhances customer
journey
Notes:
1. £5.0 million cost savings relative to operating expenses for the 12 months ended December 2021.
The additional £3.0 million savings (of the £8.0 million) are relative to annualised operating expenses
for the six months ending 30 June 2024.
2. Source: Finance & Leasing Association (‘FLA’): New business values within retail store and online credit:
2025: 15.5% (2024: 13.6%). FLA total and Retail Finance new business of £9,094.8m (2024: £9,476.6m)
and £1,407.0m (2024: £1,289.7m) respectively. As published at 31 December 2025.
Secure Trust Bank PLC Annual Report & Accounts 2025
11
Strategic Report
Corporate Governance
Financial Statements
Other Information
Chief Executive’s statement
continued
The FCA is now working through an extensive
range of responses to the consultation and
has indicated it will publish redress scheme
rules by the end of March 2026. The current
proposed redress scheme is towards the
extreme end of outcomes previously expected,
however, these proposals are subject to
consultation and therefore remain uncertain.
As a result of the FCA proposals, the Group
increased its provision for motor finance
consumer redress and related costs by
£16.4 million. As at 31 December 2025 we held
a provision of £21.5 million (2024: £6.4 million.
See Note 31 to the Financial Statements
for further information).
To calculate the provision, we updated our
range of probability-weighted scenarios,
including a high probability of the FCA scheme
being implemented as proposed. If the FCA
scheme was implemented entirely in its current
form, the Group would expect to increase the
provision for redress by a further £6 million.
Following the FCA’s review of Borrowers
in Financial Difficulty (‘BiFD’) in 2023, we
identified that it was appropriate to pay
£2.2 million to customers where we could have
supported them better due to their individual
circumstances. We have now completed this
programme of work. During 2025 we have
recognised an additional £2.1 million
(2024: £1.5 million) charge, as an exceptional
item, which largely relates to costs to manage
and conclude the programme (See Note 8 to
the Financial Statements).
As a result of the BiFD review, we had an
elevated stock of defaulted Vehicle Finance
loans at the end of 2024. During the year,
we agreed several debt sales, which reduced
the level of defaulted balances, and entered
into a forward flow arrangement for newly
terminated accounts.
Environmental, Social
and Governance (‘ESG’)
Following a period of organisational
transformation, we are reviewing our ESG
strategy to ensure it aligns fully with our
renewed strategic ambitions.
Our employees have worked hard to make
2025 an exceptional year for fundraising.
The Group raised over £126,000 for important
causes in the year (2024: £99,800) supporting
our partners at Birmingham Children’s Hospital,
T
^
y Hafan, Mind, Go Beyond and Bone
Cancer Research.
Building on our 2024 achievement of reducing
direct CO
2
emissions by 50% ahead of schedule,
we implemented further reductions in 2025,
through energy efficiency initiatives, further
reducing our office footprint, and accelerating
our paper-to-digital transition via enhanced
self-service journeys in Retail Finance
and Savings.
I am proud that we appear on the 2025 lists
for Great Place to Work
®
, including accolades
for UK Best Workplaces™ and UK Best
Workplaces for Women™. However, 2025 was
also a year of significant transition. The strategic
decision to exit Vehicle Finance and then sell
the Consumer Vehicle Finance business
resulted in many roles being made redundant.
With increased clarity on the timing of the
forthcoming changes, the Group is committed
to supporting all those who have been
impacted. As a result, our employee
engagement Trust Index score fell to 64%
(2024: 74%) and we are taking actions to
rebuild trust and engagement in 2026.
I acknowledge the significant impact strategic
decisions have had on all colleagues as we have
navigated this period and thank all employees
for their hard work and resilience.
Executive Committee and
Senior Leadership
During the second half of 2025, there were
several changes to what had been a relatively
long-standing Executive team. Katie Docherty,
former Chief Operating Officer (‘COO’), left
the Group after four years. I was pleased to
welcome Jim Appleby, who has extensive
experience in UK and international financial
service operations, as COO.
Chris Harper, Chief Risk Officer (‘CRO’), also
left the Group after nearly five years of service.
Uwe Seedorf has joined as Interim CRO,
bringing a wealth of experience in risk
leadership, including in his previous role as
CRO at Allied Irish Bank UK.
Following the departure of Anne Mckenning,
Vicki Baker joined the Group as Chief People
Officer in February 2026. With over 20 years’
experience in HR, transformation and strategy,
Vicki brings valuable commercial insight and a
strong people-first approach.
Finally, I was pleased that Rajat Mehta joined
the Group as Savings Director, taking over from
Julian Hartley, former Managing Director of
Vehicle Finance and Savings, who left the Group
in 2025. With over 20 years of leadership
experience in retail banking, savings strategy
and digital innovation, Rajat’s expertise in
delivering innovative solutions and driving
growth will be invaluable.
I would like to thank Anne, Katie, Chris and
Julian for their contribution and dedication
to the success of the Group over several years.
I am confident that the new additions to the
Executive Committee and senior leadership
mean we have the right leadership team in
place to support delivery of the next phase
of the Group’s growth.
Outlook
Despite signs of improving confidence
across our markets, we recognise that
recent developments in global conflict bring
heightened uncertainty, particularly their
potential effects on inflation and interest
rates. However, with a clear strategy, strong
foundations, and a long term outlook, we
remain well positioned to navigate these
challenges and deliver sustained value for
customers and shareholders. The conclusion
of regulatory interventions into the motor
finance sector would also provide much
needed certainty in 2026.
I am confident that the strategic decisions we
have taken should enable the Group to begin
building a track record as a sustainable high
returning business. The Board and I believe
that Secure Trust Bank is positioned for value
creation and enhanced shareholder returns.
Ian Corfield
Chief Executive
11 March 2026
Secure Trust Bank PLC Annual Report & Accounts 2025
12
Strategic Report
Corporate Governance
Financial Statements
Other Information
Key performance indicators
The following key performance indicators are the primary measures used by management to assess the performance of the Group.
Certain key performance indicators represent
alternative performance measures that are
not defined or specified under International
Financial Reporting Standards (‘IFRS’).
Definitions of the financial key performance
indicators, their calculation and an explanation
of the reasons for their use can be found in the
Appendix to the Annual Report on pages 196
to 199.
All key performance indicators are presented
on a continuing basis, unless otherwise stated.
Further information on discontinued operations
are included in Note 10 to the Financial
Statements. Further explanation of the financial
key performance indicators is discussed in the
narrative of the Financial review on pages 14 to
19. Further explanation of the non-financial key
performance indicators is provided in the
Managing our business responsibly (pages 45
to 53) and Climate-related financial disclosures
(pages 54 to 65) sections.
The Directors’ Remuneration report, starting
on page 97, sets out how executive pay is
linked to the assessment of key financial
and non-financial performance indicators.
Financial
Non-financial
Why we measure this
Shows the growth in the Group’s lending
balances, which generate income
Why we measure this
Indicator of customer satisfaction with
the Group’s products and services
Why we measure this
Measures the Group’s ability to generate
profit from the equity available to it
Why we measure this
Indicator of employee engagement
and satisfaction
Why we measure this
Shows the interest margin earned on the
Group’s lending balances, net of funding costs
Why we measure this
Indicator of the Group’s impact
on the environment
Loans and advances to customers
(£bn)
202
3
202
4
202
5
2.8
3.1
3.3
Customer Trustpilot ratings
(Stars)
1
202
3
202
4
202
5
4.8
4.8
4.8
Employee survey trust index score
(%)
202
3
202
4
202
5
83.0
74.0
64.0
Net interest margin
(%)
202
3
202
4
202
5
4.6
4.7
4.7
Environmental intensity indicator
2
202
3
202
4
202
5
2.0
1.5
1.2
Common Equity Tier 1 (‘CET 1’) ratio
(%)
202
3
202
4
202
5
12.7
12.3
12.9
Cost of risk
(%)
202
3
202
4
202
5
1.1
0.8
1.0
Why we measure this
The CET 1 ratio demonstrates
the Group’s capital strength
Why we measure this
Measures how efficiently the Group uses its
cost base to produce income
Why we measure this
Measures how effectively the Group manages
the credit risk of its lending portfolios
Return on average equity
(%)
202
3
202
4
202
5
10.0
10.6
14.6
15.0
14.3
14.3
Adjusted figures exclude exceptional items.
For further information see Note 8 to the
Financial Statements.
Cost to income ratio
(%)
202
3
202
4
202
5
51.5
46.4
45.2
45.2
47.4
52.8
Notes:
1. Mark out of 5 based on star rating from 11,220
reviews (2024: 15,527, 2023: 4,776).
2. Total Scope 1, 2 and certain Scope 3 emissions per
£million Group operating income. See page 60 for
further details.
Secure Trust Bank PLC Annual Report & Accounts 2025
13
Strategic Report
Corporate Governance
Financial Statements
Other Information
Financial review
2025
2024
Continuing
£million
Discontinued
£million
Total
Group
£million
Continuing
£million
Discontinued
£million
Total
Group
£million
Interest income
301.8
70.2
372.0
296.8
69.2
366.0
Interest expense
(150.7)
(22.7)
(173.4)
(159.5)
(21.6)
(181.1)
Net interest income
151.1
47.5
198.6
137.3
47.6
184.9
Net fee and
commission income
14.1
0.8
14.9
18.2
0.8
19.0
Operating income
165.2
48.3
213.5
155.5
48.4
203.9
Impairment charge
(31.4)
(26.6)
(58.0)
(23.2)
(38.7)
(61.9)
Other gains/(losses)
0.1
0.1
0.2
(0.4)
0.1
(0.3)
Fair value gains on
financial instruments
0.1
–
0.1
1.2
–
1.2
Operating expenses
(74.7)
(29.5)
(104.2)
(72.2)
(31.6)
(103.8)
Profit/(loss) before
income tax before
exceptional items
59.3
(7.7)
51.6
60.9
(21.8)
39.1
Exceptional items
–
(24.1)
(24.1)
(1.5)
(8.4)
(9.9)
Profit/(loss) before
income tax
59.3
(31.8)
27.5
59.4
(30.2)
29.2
Income tax (expense)/
credit
(14.7)
4.8
(9.9)
(16.0)
6.5
(9.5)
Profit/(loss) for the
year
44.6
(27.0)
17.6
43.4
(23.7)
19.7
Basic earnings per
ordinary share
238.8
(144.5)
94.2
227.7
(124.3)
103.4
Basic earnings per
ordinary share –
adjusted
238.8
(31.1)
207.7
233.5
(83.4)
150.1
Income statement
“With the exit of Vehicle Finance delivered,
foundations are clear for enhanced and stable
financial performance.”
Rachel Lawrence ACMA
Chief Financial Officer
Secure Trust Bank PLC Annual Report & Accounts 2025
14
Strategic Report
Corporate Governance
Financial Statements
Other Information
Certain key performance indicators and performance metrics represent alternative
performance measures that are not defined or specified under International Financial
Reporting Standards (‘IFRS’). Definitions of these alternative performance measures,
their calculation and an explanation of the reasons for their use can be found in the
Appendix to the Annual Report on pages 196 to 199.
All key performance indicators are presented on a continuing basis, unless otherwise stated.
Adjusted metrics exclude exceptional items. Further information on exceptional items are
included on page 16 and discontinued operations are included in Note 10 to the
Financial Statements.
The Directors’ Remuneration report, starting on page 97, sets out how executive pay is linked
to the assessment of key financial and non-financial performance metrics.
The Group achieved a continuing
profit before tax of £59.3 million
(2024: £59.4 million), maintaining a
net interest margin (‘NIM’) of 4.7%
(2024: 4.7%) with growth in lending
balances of 8.1% to £3,295.8 million
(2024: £3,050.2 million). 2025 saw
a further improvement in effective
cost management, achieving an
adjusted cost income ratio of 45.2%
(2024: 46.4%). Cost of risk increased
to 1.0% (2024: 0.8%), with the Group
being impacted by three specific
cases within Business Finance.
Common Equity Tier 1 (‘CET 1’)
ratio at the end the year increased
to 12.9% (2024: 12.3%).
Adjusted return on average equity decreased
from 15.0% in 2024 to 14.3% in the year.
Return on average equity decreased
from 14.6% in 2024 to 14.3% in the year.
Adjusted earnings per share (‘EPS’) increased
to 238.8 pence per share (2024: 233.5 pence
per share). EPS increased to 238.8 pence
per share (2024: 227.7 pence per share).
Detailed disclosures of EPS are shown
in Note 11 to the Financial Statements.
The components of the Group’s profit
are analysed in more detail in the
following sections.
Total adjusted profit before tax increased by
32.0% to £51.6 million (2024: £39.1 million).
Total profit before tax decreased by £1.7 million
to £27.5 million (2024: £29.2 million), being
most significantly impacted by an exceptional
item relating to an additional charge for the
motor finance compensation scheme
of £16.4 million (2024: £6.9 million)
(see Note 31 to the Financial Statements
for further information).
Continuing operations
Operating income
The Group’s operating income increased by
6.2% to £165.2 million (2024: £155.5 million).
Net interest income on the Group’s lending
assets continues to be the largest component
of operating income. This increased by 10.1%
to £151.1 million (2024: £137.3 million), driven
by a growth in average lending balances of 9.5%
to £3,184.3 million (2024: £2,908.4 million).
The Group’s net interest margin was
maintained at 4.7% (2024: 4.7%) by actively
managing the reduction in gross yields in light
of the reductions in the Bank of England Base
Rate and lower cost of funds.
Other income, which relates to net fee
and commission income, reduced by 22.5%
to £14.1 million (2024: £18.2 million) due to
lower one-off termination fees within
Commercial Finance.
Impairment charge
Impairment charges increased by £8.2 million
year on year resulting in the cost of risk for
increasing to 1.0% (2024: 0.8%), which included
the impact of higher impairments on a few
specific cases within Business Finance.
The impairment charge within Retail Finance
of £19.2 million, was £5.9 million higher
than the prior year (2024: £13.3 million),
however, 2024 included the impact of IFRS
9 model enhancements.
Financial review
continued
Selected key performance indicators and performance
metrics: (Continuing)
2025
%
2024
%
Percentage
point
movement
Net interest margin
4.7
4.7
–
Net revenue margin
5.2
5.3
(0.1)
Yield
9.5
10.2
(0.7)
Cost of funds
4.7
5.5
(0.8)
Adjusted cost to income ratio
45.2
46.4
(1.2)
Statutory cost to income ratio
45.2
47.4
(2.2)
Cost of risk
1.0
0.8
0.2
Adjusted return on average equity
14.3
15.0
(0.7)
Return on average equity
14.3
14.6
(0.3)
Common Equity Tier 1 ratio
12.9
12.3
0.6
Total capital ratio
15.2
14.6
0.6
Secure Trust Bank PLC Annual Report & Accounts 2025
15
Strategic Report
Corporate Governance
Financial Statements
Other Information
During the year, the Group refreshed
macroeconomic inputs to its IFRS 9 Expected
Credit Loss (‘ECL’) models, incorporating its
external economic adviser’s latest UK economic
outlook. The forecast economic assumptions
within each IFRS 9 scenario, and the weightings
applied, are set out in more detail in Note 17 to
the Financial Statements. The overall impact of
the updates to macroeconomic inputs in 2025
was an additional impairment charge of
£1.0 million (2024: £1.2 million release).
The Group has applied Expert Credit
Judgements (‘ECJs’) overlays totalling
£1.6 million (2024: £5.7 million underlay),
where management believes the IFRS
9 modelled output is not accurately reflecting
current risks in the loan portfolios. The most
significant underlay of £2.7 million relates
primarily to specific Commercial Finance
cases, where the model does not reflect the
full value of the security held. During 2025,
the 2024 ECJ underlay relating to the Vehicle
Finance lending portfolios LGD stage 1 and 2
recovery assumptions were incorporated into
the IFRS 9 model (2024: £4.5 million).
Financial review
continued
Fair value gains on financial instruments
The Group has highly effective hedge
accounting relationships, and, as a result,
did not recognise a hedging ineffectiveness
gain or loss in 2025 (2024: £0.1 million gain)
and £0.5 million loss (2024: £0.6 million gain)
relating to hedge accounting inception and
amortisation adjustments (see Note 5 to the
Financial Statements). The Group recognised
a gain of £0.6 million (2024: £0.5 million gain)
relating to interest rate swaps being entered
into ahead of hedge accounting becoming
available, which will reverse to the income
statement over the remaining life of the swaps.
Operating expenses
The cost base increased by £2.5 million to
£74.7 million (2024: £72.2 million), having been
impacted by the changes in senior leadership
and increases in employers national insurance.
The adjusted cost to income ratio improved
by 120 basis points to 45.2% (2024: 46.4%).
Statutory cost income ratio was 45.2%
(2024: 47.4%).
Exceptional items
Following an organisational redesign
in 2024, £1.5 million was incurred for
restructuring costs.
Discontinued operations
At the year-end, the Vehicle Finance
business was classified as discontinued.
Further information on the performance of the
business can be found in the Business Review
on page 26. Details of exceptional items
relating to this activity are described below.
Exceptional items
The Group recognised charges for exceptional
items of £24.1 million during the year, which
all related to the Vehicle Finance business
(2024: £9.9 million, of which £8.4 million
related to the Vehicle Finance business).
In respect of the FCA’s consultation on the
motor finance redress scheme, a further
charge of £16.4 million was recognised in the
second half of the year as a consequence of
the publication of the FCA’s consultation paper.
(2024: £6.9 million). Further information can be
found in Note 31 to the Financial Statements.
Following the decision to exit the Vehicle
Finance market in July, an organisation and
business restructure was undertaken incurring
a charge of £5.0 million, which included
redundancy costs and the write-down of
associated assets.
Further costs of £2.1 million, (2024: £1.5 million)
were recognised in relation to the FCA’s review
of Borrower’s in Financial Difficulty across the
industry in 2023. These primarily related to
costs to complete the programme of work.
In respect of the sale of the Consumer Vehicle
Finance book announced in December 2025,
£0.6 million of transaction costs were
recognised, with the remainder of costs
to be recognised in 2026.
Further details on all Exceptional items are
included in Note 8 to the Financial Statements.
Taxation
The effective tax rate was 24.8% (2024: 26.9%),
which was broadly in line with the
statutory rate.
Distributions to shareholders
The Board recommended the payment of a
final dividend for 2025 of 23.7 pence per share,
which together with the interim dividend of
11.8 pence per share, represents a total
dividend for the year of 35.5 pence per share
(2024: 33.8 pence per share). This is in line with
the Group’s progressive dividend policy.
Secure Trust Bank PLC Annual Report & Accounts 2025
16
Strategic Report
Corporate Governance
Financial Statements
Other Information
Financial review
continued
1
2
4
2024: £3,608.5m
3
£1,466.5m
£1,466.9m
£362.4m
£3,686.6m
Retail Finance
1
Real Estate Finance
2
Commercial Finance
3
£3,686.6m
Total
Continuing businesses
£3,295.8m
Vehicle Finance
£390.8m
4
Loans and advances to customers
£2,526.2m
Total
1
2
4
3
Retail Finance
£1,407.0m
1
Real Estate Finance
£451.0m
2
Commercial Finance
£287.5m
£2,145.5m
3
Vehicle Finance
£380.7m
4
2024: £2,331.9m
£2,526.2m
Continuing businesses
New business volumes
Summarised balance sheet
Assets
2025
£million
2024
£million
Cash and Bank of England reserve account
528.1
445.0
Loans and advances to banks and debt securities
37.8
24.0
Loans and advances to customers
3,295.8
3,050.2
Loans and advances to customers – Discontinued
1
390.8
558.3
Fair value adjustment for portfolio hedged risk
7.3
(6.8)
Derivative financial instruments
0.2
14.3
Other assets
56.0
31.7
4,316.0
4,116.7
Liabilities
Due to banks
205.9
365.8
Deposits from customers
3,509.6
3,244.9
Fair value adjustment for portfolio hedged risk
4.7
(3.4)
Derivative financial instruments
0.1
10.0
Tier 2 subordinated liabilities
93.5
93.3
Other liabilities
127.9
45.6
3,941.7
3,756.2
Note:
1.
Vehicle Finance portfolio classified as ‘Held for Sale’ in 2025, and ‘Loans and Advances to Customers’
in 2024.
New business
2025 was another strong year for new
business with new lending for continuing
businesses of £2,145.5 million, up 20.6%
year on year (2024: £1,779.0 million).
Business Finance increased by 50.9% to
£738.5 million (2024: £489.3 million)
with strong growth in both divisions.
Retail Finance was 9.1% higher at
£1,407.0 million (2024: £1,289.7 million)
as the business continued to grow its
retail distribution network and develop
its strategic relationships.
Customer lending and deposits
Net lending from continuing operations
grew by 8.1% to £3,295.8 million
(2024: £3,050.2 million) with Retail Finance
up by 8.0%, Real Estate Finance by 9.4%
and Commercial Finance by 3.2%.
Further analysis of loans and advances to
customers, including a breakdown of the
arrears profile of the Group’s loan books,
is provided in Note 17 to the
Financial Statements.
Customer deposits include Fixed-term
bonds, ISAs, Notice and Access accounts.
Customer deposits increased by 8.2% to
£3,509.6 million (2024: £3,244.9 million)
in order to fund the growth in lending.
This growth in deposits has come from ISAs.
Investments and wholesale funding
The Bank of England Term Funding Scheme
with additional incentives for SMEs (‘TFSME’)
facility was fully paid off during 2025
(2024: £230.0 million) and the Group
increased its drawings under sale and
repurchase agreements to £201.2 million
at 31 December 2025 (2024: £125.7 million).
Total funding ratio of 113.3% increased
slightly from 31 December 2024 (112.4%).
Tier 2 subordinated liabilities
In the current and prior year Tier 2 subordinated
liabilities comprise £90.0 million of 10.5-year
13.0% Fixed-Rate Callable Subordinated Notes,
which qualify as Tier 2 capital.
Secure Trust Bank PLC Annual Report & Accounts 2025
17
Strategic Report
Corporate Governance
Financial Statements
Other Information
Financial review
continued
Capital
Management of capital
Our capital management policy is focused on optimising shareholder value over the long term.
Capital is allocated to achieve targeted risk adjusted returns whilst ensuring appropriate
surpluses are held above the minimum regulatory requirements.
Key factors influencing the management of capital include:
•
The level of buffers and the capital requirement set by the Prudential Regulation
Authority (‘PRA’);
•
Estimated credit losses calculated using IFRS 9 methodology and the applicable transitional rules;
•
New business volumes; and
•
The product mix of new business.
Capital resources
Capital resources increased over the period from £415.7 million to £428.4 million. CET 1 capital
increased by £13.4 million, primarily driven by a total profit for the period of £17.6 million, offset by
the 2025 final dividend of £4.4 million.
Capital
2025
£million
2024
£million
CET 1 capital, excluding IFRS 9 transitional adjustment
364.8
351.3
IFRS 9 transitional adjustment
–
0.1
CET 1 capital
364.8
351.4
Tier 2 capital
1
63.6
64.3
Total capital
428.4
415.7
Total risk exposure
2,827.5
2,855.7
Note:
1.
Tier 2 capital, which is solely subordinated debt net of unamortised issue costs, is capped at 25% of total
Pillar 1 and Pillar 2A requirements.
Capital ratios
2025
%
2024
%
CET 1 capital ratio
12.9
12.3
Total capital ratio
15.2
14.6
CET 1 capital ratio
(excluding IFRS 9 transitional adjustment)
12.9
12.3
Total capital ratio
(excluding IFRS 9 transitional adjustment)
15.2
14.6
Leverage ratio
9.4
9.5
Capital requirements
The Total Capital Requirement, set by the PRA, includes both the calculated requirement derived
using the standardised approach and the additional capital derived in conjunction with the Internal
Capital Adequacy Assessment Process (‘ICAAP’). In addition, capital is held to cover generic buffers
set at a macroeconomic level by the PRA.
2025
£million
2024
£million
Total Capital Requirement
254.5
257.0
Capital conservation buffer
70.7
71.4
Countercyclical buffer
56.6
57.1
Total
381.8
385.5
The total risk exposure decreased from £2,855.7 million to £2,827.5 million, as a consequence of
a change in the balance sheet mix at the end of the year, which included the impact of the Vehicle
Finance loan book being in run-off.
Secure Trust Bank PLC Annual Report & Accounts 2025
18
Strategic Report
Corporate Governance
Financial Statements
Other Information
Financial review
continued
Liquidity
Management of liquidity
The Group uses a number of measures to manage liquidity risk. These include:
•
The Overall Liquidity Adequacy Requirement (‘OLAR’), which is the Board’s view of the
Group’s liquidity needs, as set out in the Board-approved Internal Liquidity Adequacy
Assessment Process (‘ILAAP’);
•
The Liquidity Coverage Ratio (‘LCR’), which is a regulatory measure that assesses
net 30-day cash outflows as a proportion of High Quality Liquid Assets (‘HQLA’);
•
Total funding ratio, as defined in the Appendix to the Annual Report; and
•
‘HQLA’ are held in the Bank of England Reserve Account and gilts. For LCR purposes,
the HQLA excludes gilts that are pledged as collateral.
The Group was above the LCR minimum threshold (100%) throughout the year, with the
Group’s average LCR being 190.4% (2024: 219.6%) based on a rolling 12-month-end average.
Liquid assets
We continued to hold significant surplus liquidity over the minimum requirements throughout
2025, managing liquidity by holding HQLA and utilising funding (predominantly from retail
funding) to support lending. Total liquid assets increased to £560.8 million (2024: £469.0 million).
This includes the receipt of a deposit of £45.8 million as part of the sale of the Consumer Vehicle
Finance business.
The Group has drawn £201.2 million under sale and repurchase agreements (2024: £125.0 million).
The Group maintains access to the Bank of England’s Sterling Monetary Framework, including
a reserves account. Amounts drawn under the TFSME scheme were repaid during the year.
The Group has no liquid asset exposures outside the United Kingdom and no amounts that
are either past due or impaired.
Liquid assets
2025
£million
2024
£million
Aaa–Aa3
529.1
445.0
A1–A2
31.7
24.0
Total
560.8
469.0
We continue to attract customer deposits to support balance sheet growth. The composition of
customer deposits is shown in the table below:
Customer deposits
2025
%
2024
%
Fixed term bonds
43
47
ISAs
34
26
Access accounts
22
25
Notice accounts
1
2
Total
100
100
Secure Trust Bank PLC Annual Report & Accounts 2025
19
Strategic Report
Corporate Governance
Financial Statements
Other Information
Business review
Consumer Finance
Retail Finance
We provide quick and
easy finance options at
the point of purchase.
What we do
• We provide a market-leading online
e-commerce service to retailers, providing
unsecured, interest-free and interest-bearing
prime lending products to UK customers to
facilitate the purchase of a wide range of
consumer products, including furniture,
jewellery, dental, leisure items and football
season tickets. These retailers include a large
number of household names.
• Products are available to purchase in store or
online, using our market-leading origination
platform, which provides fast decision
making, with 90% of applications agreed
in an average of six seconds.
• The customer proposition and the integrated
platform support the growth of UK retailers
and the real economy.
2025 performance
• New business lending increased 9.1%
(2024: 8.8%), contributing to record lending
balances. Retail Finance continued to hold a
strong market position, with market share of
new business at 15.5%
1
(2024: 13.6%).
• Growth was focused in high-quality sectors
such as furniture, and we continued to serve
a diverse retailer mix across sectors and sizes.
• Improved net interest margin to 6.9%
(2024: 6.8%) reflects disciplined pricing in a
competitive environment. Risk adjusted
margin fell to 5.8% (2024: 6.0%) reflecting
the benefit of model enhancements in 2024.
• The portfolio remained focused on
interest-free lending, which accounted
for 86.1% of balances (2024: 86.7%).
•
Over 475,000 mobile app registrations,
enabling greater self-service and access
to our full product and retailer offering.
• We anticipate further growth with both
new and existing retailers in 2026, with
a focus on expansion within the Home
improvement sector.
2025 Mobile app registrations
Over 475k
Launched December 2024
Note:
1. Source: Finance & Leasing Association (‘FLA’): New business values within retail store and online credit: 2025: 15.5% (2024: 13.6%).
FLA total and Retail Finance new business of £9,094.8m (2024: £9,476.6m) and £1,407.0m (2024: £1,289.7m). As published at 31 December 2025.
“Another strong year
for the V12 business,
with a notable uplift in
lending balances and
profit before tax.”
Andrew Phillips
Managing Director,
Retail Finance
Net interest margin
(%)
202
3
202
4
202
5
6.4
6.8
6.9
Risk adjusted margin
(%)
202
3
202
4
202
5
5.3
6.0
5.8
Performance history
New business
(£m)
202
3
202
4
202
5
1,185.4
1,289.7
1,407.0
Loans and advances to customers
(£m)
202
3
202
4
202
5
1,223.2
1,357.8
1,466.5
Secure Trust Bank PLC Annual Report & Accounts 2025
20
Strategic Report
Corporate Governance
Financial Statements
Other Information
Driving sustainable
growth: V12 and mydentist
Our long-standing partnership has been built on a
deep understanding of the business and a shared
focus on supporting sustainable growth
V12’s technology plays a key role, with a simple-to-use platform
and strong reporting capabilities that make it easy for practice
teams to engage with patient finance.
Beyond performance, V12 has supported mydentist in staying
ahead of consumer duty and regulatory requirements through
open and honest dialogue, guidance towards useful resources,
and access to supportive conversations with internal experts.
This partnership approach ensures compliance is not just met,
but embedded into everyday decision-making
“By extending our partnership with V12, we
strengthen our commitment to accessible dental
healthcare, giving more patients the flexibility they
need when it comes to financing their treatments.”
Nick Marsden
Clinical Commercial Director
mydentist
Business review
continued
Secure Trust Bank PLC Annual Report & Accounts 2025
21
Strategic Report
Corporate Governance
Financial Statements
Other Information
Business review
continued
What we do
• We provide non-regulated first charge
secured lending to specialist real estate
markets, lending to professional landlords
to enable them to improve and grow their
portfolio and provide development
facilities to property developers and
SME housebuilders to help build new
homes for sale or letting.
• Due to our specialist relationship-led
business model, we offer through the cycle
tailored underwriting and cash flow led
debt structuring.
• Finance opportunities are sourced and
supported on a relationship basis directly
and via introducers and brokers.
2025 performance
• Record levels of new lending,
with £451.0 million of new business
written throughout the year, despite
a subdued market.
• The slight reduction in net revenue
margin reflects increased lending in
lower-risk residential investment, which
represents 92.4% of the book (2024: 88.1%).
The remainder comprises development,
commercial investment and bridging
exposures.
•
Impairment charges of £8.8 million
(2024: £4.0 million) due to the impact of
two cases. This largely relates to one
legacy development case which is now
materially resolved.
• The average loan-to-value remains low at
57.3% (2024: 56.0%), below our maximum
70% offering.
•
We enter 2026 with strong positive
momentum, with growth supported by
expansion into our new Bridging product,
which enables us to offer full lifecycle funding.
Business Finance
Real Estate Finance
We lend money against
residential properties to
professional landlords and
property developers.
2025 Real Estate Finance average
loan-to-value
57.3%
2024: 56.0%
Performance history
Loans and advances to customers
(£m)
202
3
202
4
202
5
1,243.8
1,341.4
1,466.9
Net revenue margin
(%)
202
3
202
4
202
5
2.6
2.6
2.4
New business
(£m)
202
3
202
4
202
5
434.0
383.5
451.0
Risk adjusted margin
(%)
202
3
202
4
202
5
2.2
2.3
1.8
“We have seen strong
levels of demand in
2025, and continue to
expand our product
suite to strengthen
our business for
value creation.”
Luke Jooste
Managing Director,
Business Finance
Secure Trust Bank PLC Annual Report & Accounts 2025
22
Strategic Report
Corporate Governance
Financial Statements
Other Information
Business review
continued
Strengthening partnership
through refinance facility
Real Estate Finance provided a £37 million loan
to refinance a portfolio of 12 apartment blocks
situated across England.
During the year, Real Estate Finance strengthened its
long-standing relationship with leading real estate investor
Castleforge through the completion of a £37 million refinancing
facility. The refinancing consolidates previous facilities provided
by the Group since 2019, supporting Castleforge’s acquisition,
refurbishment and value‑enhancement strategy. The facility
will support the portfolio’s business plan over the next
four years.
“This refinancing consolidates our existing
arrangements into a single, efficient package
and provides the flexibility needed to continue
enhancing the quality and value of the portfolio.”
Jayan Patel
Transaction Lead
Castleforge, Real Estate Investor
Secure Trust Bank PLC Annual Report & Accounts 2025
23
Strategic Report
Corporate Governance
Financial Statements
Other Information
Business Finance
Commercial Finance
Supporting the growth of
UK businesses by providing
flexible, asset-based
financing solutions
What we do
• We offer a full suite of asset-based lending
solutions to SMEs and some larger
corporates who need bespoke working
capital solutions for their business.
• We operate a high-touch relationship-led
model throughout the life of a facility, where
partners and clients have direct access to
decision‑makers.
•
Our lending remains predominantly against
receivables, releasing funds of up to 90%
of qualifying invoices under invoice
discounting facilities.
•
Business is sourced and supported directly
from clients via private equity houses and
professional introducers but is not reliant
on the broker market.
2025 performance
• New business more than doubled
year‑on‑year, and low client attrition saw
net lending balances rise to £362.4 million.
• Growth in spot lending balances in line
with average lending balances, reflecting
controlled and stable growth.
• Income from one-off termination fees
was lower than in 2024, reducing net
revenue margin and risk adjusted margin,
but contributes to a more stable and
higher‑quality earnings profile over time.
•
Cost of risk of 0.9% (2024: 1.7%), whilst
improved, reflects the impact of one specific
case within the business.
•
In 2026, we look forward to supporting
businesses across our core product suite,
whilst also expanding our offering to include
selective Speciality Finance (lending to
non‑bank lenders). This represents a natural
extension of our current proposition.
2025 Commercial Finance
utilisation rate
57.4%
2024: 60.9%
“Record levels of new
business lending in
Commercial Finance
reflect the continued
strength of our
product propositions.”
Luke Jooste
Managing Director,
Business Finance
Business review
continued
Performance history
Loans and advances to customers
(£m)
202
3
202
4
202
5
381.1
351.0
362.4
Net revenue margin
(%)
202
3
202
4
202
5
7.0
7.6
6.1
New business
(£m)
202
3
202
4
202
5
214.8
105.8
287.5
Risk adjusted margin
(%)
202
3
202
4
202
5
4.7
5.9
5.2
Secure Trust Bank PLC Annual Report & Accounts 2025
24
Strategic Report
Corporate Governance
Financial Statements
Other Information