Secure Trust Bank’s new lending jumps 30 per cent in Q4

Compared to the previous quarter, lending volumes were flat as its business finance division recorded a 13.6 per cent drop in lending. This was still almost triple the level of lending it completed the year before. 

Its consumer finance department saw total lending volumes of £400m which was 7.1 per cent higher than the previous quarter. Compared to 2022, this was a 2.3 per cent uplift. 

In Q4, the lender’s net lending rose by 3.2 per cent quarter-on-quarter and 13.6 per cent year-on-year to £3.3bn. 

The lender said this was bringing the business closer to its £4bn target. 

Secure Trust Bank said all divisions of the business reported growth during the period, with a 3.1 per cent uptick across its real estate business and a 3.2 per cent rise in consumer lending. On an annual basis, this represented increases of 13.6 per cent and 18.4 per cent respectively. 

The lender said its net interest margin was in line with H1 2023 and it was trading in line with market expectations “with a significant increase to year-on-year underlying profits before tax and impairments.” 

David McCreadie, chief executive of Secure Trust Bank, said: “We have delivered another strong underlying performance in 2023 with excellent progress made in growing our net lending balances and delivering cost efficiency improvements. We have been operating in a challenging economic environment for a prolonged period. Our business model has proven to be resilient, and we have continued to make significant progress in delivering our strategic plans.  

“I am cautiously optimistic that inflation will continue to fall and that stable lower interest rates will follow leading to a less volatile trading environment. We remain focused on delivering positive outcomes for all of our customers and delivering products and services that meet their needs.” 

Directorate change at Secure Trust Bank

Secure Trust Bank also announced the appointment of Jim Brown as non-executive director. He will take up the post in March, subject to regulatory approval, following the retirement of chairman and non-executive director Lord Forsyth. 

Brown is currently chief executive of Sainsbury’s Bank and has worked in the banking sector for many years, including a decade at RBS where he was most recently CEO future at Williams and Glyn Bank. 

Lord Forsyth said: “Following a comprehensive recruitment process conducted by the nomination committee and led by the senior independent director, I am delighted that we have found such an experienced candidate to succeed me as chairman. Jim is a banking professional and brings with him a strong track record in large-scale executive roles.” 

Brown said “I am honoured to be appointed as chairman of Secure Trust Bank, subject to regulatory approval. I would like to thank Lord Forsyth for his contribution over the past 10 years, and I look forward to working with the board, David and Rachel and the management team.” 

McCreadie added: “I am delighted to welcome Jim to Secure Trust Bank and look forward to working with him. I would also like to extend my gratitude to Lord Forsyth for his leadership and for the major contribution he has made to the development of our company over the last 10 years.”