Secure Trust Bank’s new business lending rises 86 per cent YOY to £1.1bn

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  • 04/08/2022
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Secure Trust Bank’s new business lending rises 86 per cent YOY to £1.1bn
Specialist lender Secure Trust Bank’s new business lending volumes for the first half of the year surged to £1.1bn, a 86 per cent rise compared to the same period last year.

According to its interim results for the six months ending 30 June 2022, its core net lending book grew 12.2 per cent.

Within its consumer finance division, its core net lending balance increased to £1.2bn, up from £1bn at the end of last year.

The lender said this is due to a record £743.4m of new business lending in the first six months of year. This is up from £431.5m in the same period last year.

In its business finance segment core net lending balances came to £1.5bn, up from £1.4 bn at the end of last year.

This was attributed to new business lending nearly doubling year-on-year to £171.7m.

The lender also reported a core impairment charge of £17.9m, up from £400,000 credit in the same period last year. This was due to a higher cost of risk and growth in new business.

The lender said it had delivered a statutory profit before tax of £24.7m, which is lower than £30.7m in the same period last year.

This was attributed to normalised impairment levels and accelerated lending growth.

The lender added that it had completed the sale of its Debt Managers loan portfolio, with an initial profit of £8.1m, and completed the acquisition of AppToPay.

Looking forward, the group said it “firmly embedded” its strategy of focusing on “core markets” where it has “depth of expertise and opportunity to grow”, adding that it was determined to become the UK’s “most trusted specialist lender”.

It said: “We continue to invest in new products and consider strategic acquisitions to complement our four core businesses. We are conscious of the economic headwinds impacting our customers.

“We will continue to support them as we did through the pandemic and will ensure the group continues to operate within risk appetite, lending responsibly during these challenging times. Our diversified and resilient business model, agility and strong capital and liquidity positions make us well placed to both weather uncertain market conditions and deliver sustainable long-term growth.”

The lender said it was “well positioned to capitalise on the opportunity to build on its strong foundations in its attractive, specialist lending markets and to deliver its medium-term targets”.

 

A good performance

David McCreadie, Secure Trust Bank’s chief executive, said he was pleased with its “operational performance” during the first six months of the year.

He continued that the group has grown its lending balances beyond pre-pandemic levels in core businesses and had achieved record new business volumes.

“We have completed the simplification of the group, delivered strong income growth and become more efficient. We are committed to navigating our businesses carefully through these uncertain times and will continue to be flexible in how we react during this period of economic uncertainty. Our new purpose – to help consumers and businesses fulfil their ambitions – will guide us and we remain committed to supporting our customers and business partners,” McCreadie added.

He said the firm had “significant growth potential in our attractive markets” and will “capture opportunities with our usual focus on disciplined risk management”.

McCreadie said: “We are well placed to realise our ambitions and have shown resilience through the challenges of the last few years. We will also continue to consider potential M&A opportunities which can complement our core markets. We remain confident about the future despite near term uncertainties.”

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