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 in H1 2024, with strong performance in consumer segments and improved cost efficiency. Elevated impairments in Vehicle Finance impacted profits, but collections are normalizing and cost savings targets have been raised. Confidence remains high for achieving medium-term growth and return targets.
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Net lending has grown significantly, with a clear path to £4bn and mid-teens return on equity. Real estate finance focuses on low-risk, relationship-led lending in residential and select commercial sectors, integrating ESG and maintaining strong risk controls. Growth is expected to continue, supported by a scalable model and robust capital.