24th Dec 2025 13:52
(Alliance News) - Secure Trust Bank PLC on Wednesday said it has agreed to sell its Consumer Vehicle Finance business to private equity funds for just under GBP460 million, some of which the lender said it will return to shareholders.
Secure Trust is a Solihull, England-based business and consumer lender. The sale of its vehicle finance arm comes amid requirements to provide customer redress for undisclosed commission payments.
Secure Trust back in October raised its provision for redress to GBP21 million, saying a consultation paper published by the UK Financial Conduct Authority meant the impact was likely to be "towards the extreme end" of previously expected outcomes. In July, Secure Trust had said it would stop new lending in its Vehicle Finance business and run-off the remaining portfolio of loans.
On Wednesday, it said it agreed to sell that portfolio and associated assets to funds managed by LCM Partners Ltd, a London-based alternative investment fund manager. The sale price of GBP458.6 million represents a slight premium to the portfolio's book value of GBP442.5 million on September 30.
Secure Trust said the disposal will generate a small net gain on sale after costs and will be completed in the first quarter of 2026.
The lender said the sale of the vehicle finance arm is expected to increase its common equity tier 1 ratio to 14.8% from 12.8%.
"The group is reviewing its capital allocation strategy, including considering the opportunity for (subject to regulatory approval) share buy backs," Secure Trust said.
It said it will provide a trading update for 2025 early in 2026 and an update on strategic plans in the first quarter.
"This transaction is a significant step forward in delivering on our strategic priorities, focusing capital and energy on core business areas and improving our returns for shareholders," Chief Executive Officer Ian Corfield said.
Secure Trust Bank shares closed up 1.9% to 1,095.00 pence in Wednesday's half-day session in London.
By Tom Waite, Alliance News editor
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