- Secure Trust Bank announced that profit before tax increased 11% to £13.9m in the six months to 30 June 2017.

The group continued its reshaping of the business model, with the growth of lower risk Real Estate Finance lending, cessation of non-prime unsecured personal lending and subprime motor finance, and the launch of STB Mortgages.

These results reflect this strategic repositioning with the run off books and investment in new business lines acting as a drag on earnings.

The benefits of this strategy are expected to be more visible in 2018 and beyond. The balance sheet has continued to grow, with lower risk assets replacing the legacy books that are being run off.


- Statutory profit before tax £13.9m (2016: £12.5m) up 11%

- Underlying profit before tax £14.5m (2016: £16.2m) down 10%

- Common equity tier 1 ratio of 15.3% (2016: 20.1%)

- Operating income £65.8m (2016: £57.3m) up 15%

- Basic earnings per share 60.6p (2016: 57.0p) up 6%

- Underlying earnings per share 63.3p (2016: 73.1p) down 13%

- Interim dividend of 18p per share (2016: 17p per share), to be paid in September 2017

- Total assets £1.67bn (2016: £1.35bn) up 24%


- Customer deposits increased to £1,325.8m (2016: £1,042.6m) up 27%

- Overall loan book increased to £1,509.6m (2016: £1,128.3m - continuing operations) up 34%

- Total customer numbers increased by 39% to 849,365

- Real Estate Finance lending balances up 50% year-on-year to £541.4m

- Invoice Finance business funded over £1bn of customer invoices since inception in 2014

- Short term retail finance lending balances increased by 45% year on year

- Mortgage product launched in March 2017

- Continuing high levels of customer satisfaction as measured by FEEFO

Chairman Lord Forsyth said: "2016 was a transformational year with record levels of profits from ongoing trading and the sale of our branch based sub prime lending subsidiary Everyday Loans.

"This was the start of an evolution of our business model away from higher risk, higher margin consumer lending, to lower risk activities.

"I am pleased with the progress made and expect the benefits of this repositioning to become more visible in 2018 and beyond."

CEO Paul Lynam said: "The first half of 2017 has seen a continuation of the strategic repositioning of the business commenced in 2016.

"Over this time we have considerably reduced our activities in higher risk consumer lending and did so before the recent warnings from the Bank of England and regulatory bodies.

"We have reallocated capital to lower risk lending segments and are pleased with the strong growth achieved here.

"We remain strongly capitalised and well positioned to grow the Bank's lending portfolio in line with our ambition and risk appetite and have a clear growth strategy."

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