Secure Trust Bank PLC Trading Update (3160U)
October 15 2014 - 2:00AM
UK Regulatory
TIDMSTB TIDMARBB
RNS Number : 3160U
Secure Trust Bank PLC
15 October 2014
FOR IMMEDIATE RELEASE
15 October 2014
Secure Trust Bank PLC
2014 Third Quarter Trading Update
Secure Trust Bank PLC ("STB" or "Secure Trust Bank") traded
strongly during the quarter ending 30 September 2014. Total
customer lending balances across the STB Group now exceed GBP500
million for the first time.
The bank continues to enjoy the favourable conditions in the
retail deposits market. It has raised additional two, four and
seven year fixed rate deposits which enable it to match broadly the
new lending activities and to mitigate the potential impact of
interest rates rising faster than the market expects.
Demand for consumer lending, especially in Cycle and Motor
Finance, remained healthy and overall new lending business volumes
are materially higher than for the same period in 2013. The bank's
retail finance division successfully launched its Season Ticket
finance offering and will seek to build on this initial success in
2015.
Secure Trust Bank has made significant progress with the
development of its plans for SME lending. The Real Estate Finance
team, which is staffed by highly experienced bankers with proven
property lending expertise, has built up a significant pipeline of
good quality new business opportunities. A number of these have
been drawn down during the quarter. The lending is mainly short
term development financing with prudent loan to value levels. In
light of the successes achieved so far, and the future potential,
the bank has accelerated its recruitment plans to augment the
existing credit risk and relationship management teams.
Secure Trust Bank Commercial Services, the invoice finance
division of the bank, was launched as planned on 1(st) September
after a year in development. New business is already being written
and interest in our entry to the market has exceeded expectations
resulting in further new business opportunities. As a result Secure
Trust Bank Commercial Services has brought forward its recruitment
plans for additional risk and business development staff and is
pleased to note that it is attracting high calibre recruits.
The STB Group's total new lending volumes written during Q3 2014
are over 87% higher than in the same period last year. The loan
book has performed in line with the trends reported in the first
six months of 2014. Impairment levels remain below the level
expected when the loans were originated.
Secure Trust Bank PLC continues to work on a range of organic
and external business opportunities.
As a result of the growth in lending balances coupled with
continuing lower levels of impairments and firm operational cost
control Secure Trust Bank PLC anticipates full year results to be
at or above the upper end of market expectations. With the UK
economy continuing to recover, inflation remaining subdued,
employment levels rising and consumers and businesses feeling more
confident Secure Trust Bank believes it is well positioned to
sustain its positive progress over the coming period.
Enquiries:
Secure Trust Bank PLC
Henry Angest, Non-Executive Chairman Tel: 020 7012 2400
Andrew Salmon, Non-Executive Director
Paul Lynam, Chief Executive Officer Tel: 0121 693 9100
Neeraj Kapur, Chief Financial Officer
David Marshall, Director of Communications Tel: 020 7012 2400
Canaccord Genuity Limited (Nominated
Adviser)
Lawrence Guthrie Tel: 020 7665 4500
Sunil Duggal
Canaccord Genuity Limited (Broker)
Roger Lambert Tel: 020 7523 8000
Lucy Tilley
Oriel Securities Limited (Broker)
Robin Mann Tel: 020 7710 7600
Gareth Hunt
Bell Pottinger (Financial
PR) Tel: 020 3772 2563
Ben Woodford
Dan de Belder
This information is provided by RNS
The company news service from the London Stock Exchange
END
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