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Secure Trust Bank Annual Profit Rises Despite Strategic Repositioning

22nd Mar 2018 13:26

LONDON (Alliance News) - Secure Trust Bank PLC on Thursday reported a 29% rise in pretax profit for 2017 on the back of increased customer numbers, growth in loan book and a jump in deposits.

The bank's pretax profit from continuing operations rose to GBP25.3 million in 2017 from GBP19.4 million in the year ago period. Interest, fee and commission income from continuing operations increased to GBP157.3 million from GBP135.1 million.

Annual adjusted pretax profit rose 14.7% to GBP31.3 million from GBP27.3 million, in line with market expectations.

"This profit growth was achieved notwithstanding the very significant strategic repositioning of the bank's balance sheet away from higher margin and higher risk, consumer unsecured and sub-prime motor lending and a substantial investment in launching a new mortgage division and a new deposit IT platform," Chief Executive Paul Lynam said.

The retail banking firm has continued reshaping its business model, via organic growth, diversification and M&A activity.

Customer deposits increased to 28.8% during the year to GBP1.48 billion from GBP1.15 billion a year ago. Total customer numbers increased by 33.2% to 989,528. Overall loan book increased to GBP1.59 billion from GBP1.26 billion.

The company's common equity tier 1 ratio for the period was 16.5% in 2017 compared to 18.0% last year.

"The refocusing of the group's lending activities has materially reduced our exposure to higher risk consumer credit, enabling us to allocate more capital to lower risk lending. I am confident that the benefits of this strategic repositioning will become increasingly visible as 2018 progresses, not least as we started this year with our largest ever pipeline of new business opportunities," Lynam said.

Secure Trust Bank declared a final dividend declared of 61 pence per share, up from 58p, giving a total payout of 79p, up from 75p a year ago.

Shares in Secure Trust was 3.2% up at 1,710.00 pence per share on Thursday afternoon.


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