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Our Investment Case

Large addressable markets with significant growth potential

The market size in our 4 specialist businesses:

£10 billion

Retail Finance

£21 billion

Vehicle Finance

£2 trillion

Real Estate Finance

£21 billion

Commercial Finance

Our Savings business operates in a market worth over £1.5 trillion
c. £4bn Net lending
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Stable Cost of risk
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Improved Cost of funds underpins Group NIM
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c. 5% Annual cost inflation
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ROAE 14% - 16%
  • Only 5% growth in loans and advances to customers now required to achieve £4bn net lending target
  • NIM at 5.4% in H1 2025 reflects lower cost of funds
  • Significant improvement in Cost Income ratio delivered – H1 2025 ratio of 49.1% and moving towards target of 44%-46%
  • Priority objective to deliver a 14%-16% Return on Average Equity against a £4bn net loan book
  • Strategic pivot away from Vehicle Finance will enable further allocation of capital to our higher-performing specialist lending businesses
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Driving CIR improvements through simplification

  • Project Fusion, our cost efficiency programme is targeting £8 million of cost savings by YE 2025 and we are targeting a cost-income ratio of 44-46% with a lending book at £4 billion.
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Market share gains through improved customer experience and leveraging networks

  • STB achieves high scores across a range of review platforms and customer surveys. Through sustaining and improving our customer experience, we gain market share.
  • With strong networks of retailers, professional services firms, introducers, car retailers and others, we increase our reach into our specialist markets, introducing new products and driving growth.
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Scalable and agile technology platforms that underpin growth and efficiency

  • Our IT platform has seen significant investment over the last few years, ensuring scalability to support our growth.
  • Our IT platform is an essential part of our digitization strategy and operational process efficiency that support Project Fusion.
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Well established track record of prudent credit underwriting

  • As a specialist lending, we have pricing power in our markets to provide attractive Risk adjusted margins.
  • Each of our businesses has deep experience in credit underwriting, reflecting low levels of bad debt and falling cost of risk.
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Trading at material discount to Tangible NAV

  • Our share price is at a material discount to our current TNAV of £19.37 per share.