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Secure Trust Bank to reinvest debt management portfolio proceeds following Intrum sale
Secure Trust Bank has sold its portfolio of loans from its subsidiary debt managers to Intrum UK Finance.
The gross value of the portfolio as at 30 September 2021 was £84.7m and the value of the consideration was £94m.
The bank said the sale would generate a profit before tax net benefit when accounting for market exit costs.
This is expected to release around £72m of risk weighted assets which will be reinvested into Secure Trust Bank’s remaining specialist lending business and other corporate purposes.
The bank exited the residential mortgage market in July last year to focus on its specialist lending business.
In its results for 2021, it doubled its new business lending to real estate finance borrowers from £189.5m to £376.1m.
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Revenues also rose by 1.5 per cent to £54.8m as the loan book mix moved towards investment loans and away from higher margin development loans. It attributed its performance to its “refined strategy” to become the “most trusted specialist lender in the UK”.