16th Jan 2019 09:55
LONDON (Alliance News) - Secure Trust Bank PLC said Wednesday it traded "strongly" in the fourth quarter and expects its 2018 results to be in line with both management and market expectations.
The retail and commercial bank said its customer numbers in Retail Finance, Motor Finance, Mortgages and SME lending balances increased in 2018.
STB's customer lending balances now exceeds GBP2 billion, the first time the bank has exceeded the "important milestone".
The bank said: "Given the heightened economic and political uncertainty the group continues to be selective in respect of new lending activities. The strategic repositioning of the group towards lower risk lending across a focused group of attractive market segments continued to drive profit growth and improve the credit quality of new customer loan originations."
STB said its legacy subprime motor portfolio has been run-down to "immaterial levels". The shift in portfolio mix has lead to a "significant" reduction in impairments for the lender. STB said it is "progressing" its plans to offer a wider range of motor finance products in the prime end of the market.
STB added: "The group's 2018 interim results noted lenders were increasingly competing on price and risk appetite to drive new residential mortgage business volumes and that Secure Trust Bank was tempering the growth of this part of the business."
STB said its proposal to stop all new mortgage lending is not expected to have a material impact on 2018 and 2019 earnings.
The lender said it entered 2019 with "positive business momentum, robust capital positions and very strong liquidity". Secure Trust Bank believes the short duration nature of its portfolio means it can react quickly to "both opportunities and threats".
Secure Trust Bank is expected to announce in 2018 results on March 28.
Shares in Secure Trust Bank were up 2.6% Wednesday at 1,212.85 pence each.
Related Shares:
Secure Trust