London · Delayed Price · Currency is GBP · Price in GBX Secure Trust Bank Earnings Call Transcripts
Fiscal Year 2025
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Delivered 14.3% ROAE and 6.2% income growth in 2025, driven by strong lending and operational efficiency. Exited Vehicle Finance, improved capital ratios, and set new targets of 16%+ ROAE and 10% annual lending growth, with a £10m share buyback announced.
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Delivered 36.3% year-over-year growth in adjusted profit before tax, with strong lending and deposit growth, improved cost efficiency, and a strategic pivot away from Vehicle Finance. CET1 ratio remains robust, and further cost reductions and growth in core businesses are expected.
Fiscal Year 2024
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Net lending grew 8.8% to £3.6bn, with strong deposit growth and improved cost efficiency. Statutory profit was impacted by exceptional items, but underlying business performance was robust, and the group remains confident in achieving its £4bn net loan book and 14%-16% ROAE targets.
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Revised summary: Commercial Finance has achieved strong growth, increasing lending by 65% since 2020 and becoming a top five ABL provider outside major banks. Leveraging a scalable, relationship-driven model and robust risk management, it focuses on private equity-backed clients, driving recurring income and supporting continued growth.
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Lending and deposit growth continued, with strong consumer lending offset by higher Vehicle Finance impairments. Cost efficiency improved, Project Fusion savings target was raised, and capital remains robust. Outlook is positive as interest rates fall and credit demand is set to rise.
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Net lending and deposits have grown strongly, with a focus on operational efficiency and a clear path to mid-teens returns. Real estate finance emphasizes residential investment, robust risk management, and ESG integration, while planning to cautiously expand development lending as market conditions improve.