You are here: Home - News -

Secure Trust Bank exits resi market with £54.6m loan book sale

by:
  • 23/07/2021
  • 0
Secure Trust Bank exits resi market with £54.6m loan book sale
Secure Trust Bank (STB) has finalised its exit from residential mortgages with the sale of its loan book.

 

The portfolio will be acquired for £54.6m by financing vehicle Jacqali Designated Activity Company.

The purchase price took account of the net book value of £77.7m as of 31 December 2020. The portfolio contributed £1.95m, including allocated costs, to profit before tax in 2020 on an unaudited basis.

The buyer was “a financing vehicle established by a global financial institution,” with the  “purchaser’s  obligation to pay backed by the institution,” STB’s statement said.

The sale was in line with a strategy to focus on specialist lending segments offering higher yields, and capital released will be invested into the business.

STB said in January 2019 that it would withdraw from residential lending, citing competition and pressure on the housing market, and stopped taking new mortgage applications a month later.

It has continued lending in the commercial, development and real estate finance spaces. 

David McCreadie (pictured), chief executive at STB, said: “The disposal is in line with STB’s strategy of maximising value, simplifying the group and focusing on the areas of the business that have the strongest prospects for delivering sustainable and profitable medium to long-term growth.  

“The proceeds will be used to strengthen STB’s capital position, provide additional financial flexibility to deliver its growth strategy, and ultimately enhance returns for shareholders.” 

The sale is subject to agreement.

There are 0 Comment(s)

Leave a Reply

You may also be interested in