12th Mar 2026 14:29
(Alliance News) - Secure Trust Bank PLC on Thursday announced a profit fall despite rising net interest income in 2025.
The West Midlands, England-based financial institution also announced it is waiting regulatory approval to start a GBP10 million buyback programme, finance by surplus capital, that it expects to complete this year.
Secure Trust maintained the same 4.7% net interest margin as in 2024, but a net lending balance increasing by 8.1% to GBP3.30 billion from GBP3.05 billion boosted net interest income to GBP372.0 million, up 1.6% from GBP366.0 million a year ago. The bank also saw customer deposits increase by 8.2% in a year to 3.50 billion from GBP3.2 billion.
Statutory pretax profit instead decreased by 5.8% to GBP29.2 million from GBP27.5 million year-on-year, impacted by the discontinuation of the Vehicle Finance business in July, and increased provisions for motor finance consumer redress standing at GBP21.5 million at the end of 2025.
The Vehicle Finance business was then sold on February 25.
On an adjusted basis, pretax profit grew 32% year-on-year to GBP51.6 million from GBP39.1 million.
Secure Trust said it is making "strong progress" against its strategic priorities, having delivered approximately GBP8.0 million in annualised cost savings and reaching a 15.5% market share with its Retail Finance operations. As such, it set a medium-term target of a 10% annual growth in net lending, and of reaching a return on average equity above 16%. It was 14.3% in 2025.
The bank raised its final dividend to 23.7p from 22.5p per share last year, brining the total dividend for the year to 35.5 pence per share, up 5.0% from 2024's 33.8 pence.
In its outlook, Secure Trust Chief Executive Officer said the company "will grow in large investable scale markets, where there are product drive opportunities that leverage our proven capabilities...We have a clear trajectory to higher returns, delivered at a reduced cost of risk".
Secure Trust shares were down 0.7% to 1,400.00 pence each on Thursday afternoon in London.
By Martin Miraglia, Alliance News reporter
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.
Related Shares:
Secure Trust