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Investment Case

Secure Trust Bank is a simplified specialist lender delivering disciplined growth, improving returns, with a strong capital base.

With a disciplined strategy and transparent medium-term  ambitions, Secure Trust Bank is positioned to deliver sustainable and attractive returns. We believe STB offers a strong value creation proposition for investors. 

Why Secure Trust Bank?

* Subject to regulatory approval

1. Secure Trust Bank operates in large, investable, scale markets

We are expanding in markets where we have a strong track record, with deep customer relationships and plenty of product driven headroom.

2. Operating leverage to support 35-40% cost income ratio

Investment in simplification, building on the efficiencies already delivered, will see us deliver cost income ratio in line with market leading peers.

3. Clear trajectory to higher returns

We are on trajectory to deliver above 16% ROAE driven by c.10% annualised balance sheet growth.

4. Operating at reduced cost of risk

As a specialist lending, we have pricing power in our markets to provide attractive risk adjusted margins. The exit from Vehicle Finance has meaningfully reduced volatility in impairments and improved the overall quality of the loan book.

5. STB is well capitalised and intends to launch a share buyback programme

The sale of Vehicle Finance has increased out capital position, and we intend to take the opportunity to buy back shares when value accretive. With STB currently trading at a significant discount to book value, our buyback will deliver powerful returns back to shareholders. 

We have two lending divisions in Retail and Business Finance. Our medium-term targets are to deliver c.10% growth in these large addressable markets, and will only do so at high returns, to deliver over 16% return on average equity in the medium term. This is supported by stable funding through our retail deposits franchise.

There is a clear roadmap to achieving our ROAE target that brings together product expansion driven growth, RAM, and RWA stability and high operating leverage.