16 May 2024

SECURE TRUST BANK PLC

Q1 2024 Trading Update

Positive start to 2024 and economic outlook improving

Secure Trust Bank PLC ("Secure Trust Bank", "STB" or the "Group"), a leading specialist lender, is pleased to announce its trading update for the first quarter ended 31 March 2024, with further growth in net lending balances, good progress on Project Fusion cost savings and trading in line with management expectations.

Highlights

Net lending

The net loan book grew by 1.7% in the quarter and 11.9% compared to Q1 2023. Encouraging growth of 3.8% was achieved by Real Estate Finance in the quarter. Commercial Finance balances declined in the period reflecting the challenging market environment.  Balances in Vehicle Finance grew by 1.6% and in Retail Finance by 1.4%.

Deposits

Customer deposits grew by 1.7% in the quarter to support our lending objectives. Deposit balances were 14.8% higher compared to Q1 2023.

David McCreadie, Chief Executive Officer, said:

"The Group continued to grow net lending in the quarter and is trading in line with management expectations. I am pleased that the positive momentum from last year has continued and that we have taken another step towards our £4 billion net lending ambition.

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We have seen improved lending quality in Retail Finance and continued to enhance our collections processes in Vehicle Finance. We have identified further opportunities to streamline our operations and generate additional cost efficiencies.  

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With the UK economy returning to growth and the likelihood of interest rate reductions improving, we remain confident in delivering on our plans for the full year and our medium term targets."

Enquiries:

Secure Trust Bank PLC

David McCreadie, Chief Executive Officer

Rachel Lawrence, Chief Financial Officer

Phil Clark, Investor Relations

Tel: 0121 693 9100

Investec Bank plc (Joint Broker)

Bruce Garrow

David Anderson

Maria Gomez de Olea

Tel: +44 (0) 20 7597 5970

Shore Capital Stockbrokers (Joint Broker)

Mark Percy (Corporate Advisory)

Guy Wiehahn (Corporate Broking)

Tel: +44 (0)20 7408 4090

Camarco

Ed Gascoigne-Pees, Geoffrey Pelham-Lane, Sean Palmer

[email protected]

Tel: 07591 760844

The person responsible for the release of this announcement on behalf of STB is Lisa Daniels, Company Secretary.

Forward looking statements

This announcement contains forward-looking statements about the business, strategy and plans of STB and its current objectives, targets and expectations relating to its future financial condition and performance. Statements that are not historical facts, including statements about STB's 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. STB'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 economic and business conditions, risks from failure of clients, customers and counterparties, market related risks including interest rate risk, risks regarding market conditions outside STB's control, expected credit losses in certain scenarios involving forward looking data, operational risks, legal, regulatory, or governmental developments, and other factors. The forward-looking statements contained in this announcement are made as of the date of this announcement, and (except as required by law or regulation) STB undertakes no obligation to update any of its forward-looking statements.

About STB

Secure Trust Bank is an established, well‐funded and capitalised UK retail bank with a 71 year trading track record. Secure Trust Bank operates principally from its head office in Solihull, West Midlands, and had 868 employees (full‐ time equivalent) as at 31 December 2023. The Group's diversified lending portfolio currently focuses on two sectors:

(i)            Business Finance through its Real Estate Finance and Commercial Finance divisions; and

(ii)           Consumer Finance through its Vehicle Finance and Retail Finance divisions.

Secure Trust Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Secure Trust Bank PLC, Yorke House, Arleston Way, Solihull, B90 4LH.

LEI: 213800CXIBLC2TMIGI76