Secure Trust Bank H1 2026 Earnings Report

Secure Trust Bank EPS Results

• Actual EPS: GBX 126.40
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Secure Trust Bank Revenue Results

• Actual Revenue: N/A
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Secure Trust Bank Announcement Details

• Quarter: H1 2026
• Date: 8/13/2026
• Time: Before Market Opens
• Conference Call Date: Thursday, August 13, 2026
• Conference Call Time: 11:30AM ET

Secure Trust Bank is an established, well‐funded and capitalised UK retail bank with over 70‐years of trading history. Secure Trust Bank operates principally from its head office in Solihull, West Midlands. The Group's diversified lending portfolio currently focuses on two sectors: • Business finance through its Real Estate Finance and Commercial Finance divisions, and • Consumer finance through its Vehicle Finance and Retail Finance divisions. Secure Trust Bank (LON:STB) is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Secure Trust Bank PLC, Yorke House, Arleston Way, Solihull, B90 4LH.

Secure Trust Bank H1 2026 Earnings Call Transcript

Key Takeaways

• First-half performance improved: Customer lending rose to £3.5 billion, adjusted profit before tax increased 9.4% to £31.3 million, and risk-adjusted margins remained stable as the cost of risk improved.
• Capital strength supports shareholder returns: The CET1 ratio increased to 14.3%, while the bank raised its interim dividend and began a £10 million share buyback, with the remaining £5 million tranche expected from September.
• Growth initiatives are gaining traction: Partnerships with Magnet and Centrica British Gas support expansion in home-improvement point-of-sale finance, while Business Finance has launched Speciality Finance and expanded bridging; management cited a £35 million Speciality Finance pipeline.
• Cost-reduction execution is ahead: Approximately £15 million of annualized run-rate savings has been delivered or contractually committed against a £25 million target by the end of 2028, alongside ongoing technology simplification.
• Medium-term ambitions depend on disciplined execution: Management is targeting roughly 10% annual lending growth and return on average equity above 16%, but acknowledged macroeconomic uncertainty and emphasized that pricing discipline will not be materially sacrificed to reach growth targets.

Presentation

[Operator]

Good afternoon, ladies and gentlemen. Welcome to the Secure Trust Bank PLC investor presentation. Questions are encouraged. They can be submitted at any time via the Q&A tab that is just situated on the right-hand corner of your screen. Please just simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today, and will publish responses where it is appropriate to do so on the Investor Meet Company platform. Before we begin, we would just like to submit the following poll, and if you could give that your kind attention, I am sure the company would be most grateful. I would now like to hand you over to CEO, Ian Corfield. Ian, good afternoon, sir.

[Ian Corfield, CEO at Secure Trust Bank PLC]

Thanks ever so much, and thanks, everyone. I am absolutely delighted to be at our first Investor Meet session and to take you through our results for the first half of 2026. I promise the presentation will get more interesting, but for the avoidance of doubt, unless otherwise flagged, Rachel and I will be commenting on continuing adjusted numbers and metrics. During the presentation, I am going to cover both strategic and financial highlights, along with the outlook for the balance of year, before obviously taking your questions. However, what I want to start with are the five specifics that we think underpin the investment case for Secure Trust Bank.

[Ian Corfield, CEO at Secure Trust Bank PLC]

Firstly, we are operating in large and attractive markets, where we have genuine specialist expertise and clear opportunities for growth. Across Retail Finance, Business Finance, and savings, the addressable markets available to us are substantial. Secondly, our model has significant operating leverage.

[Ian Corfield, CEO at Secure Trust Bank PLC]

Much of the infrastructure required to support future growth is already in place. As we continue to scale, we expect revenue growth to outpace cost growth, supporting our goal of reducing the cost to income ratio to between 35% and 40% in the medium term. Thirdly, growth and cost efficiencies together create a clear pathway to higher returns. This is not dependent on one transformational initiative, it is the cumulative impact of multiple actions that are already underway. Fourthly, we are now operating with a reduced cost of risk. Credit discipline remains central to how we run the business, and we are seeing the benefits of improved portfolio quality and disciplined underwriting. Finally, we are well capitalized. That gives us the flexibility both to support growth and to increase shareholder distributions with our GBP 10 million buyback program already underway.

[Ian Corfield, CEO at Secure Trust Bank PLC]

I think, though, for me, what I am proud of is the fact that the first half of the year and the performance that we have produced just further enhances these trends that I have talked about. Growth, profitability, and return on required equity are all consistent with our guidance. The Vehicle Finance exit is now complete. That has been a major strategic program for the group, and completing it successfully removes complexity, releases capital, and allows management to focus entirely on our continuing growth businesses. The investments we have made in product development are beginning to generate tangible results. We have launched new products, entered new partnerships, and broadened distribution channels across the group. I will talk more about that later. Finally, we have executed strongly on cost reduction. Importantly, this is not just a plan on paper. A substantial proportion of the targeted savings are already delivered or contractually committed.

[Ian Corfield, CEO at Secure Trust Bank PLC]

Taken together, these developments reinforce our confidence in both our near-term guidance and our longer-term ambitions. The business has been materially simplified over the course of recent years, and we now operate three complementary businesses. Retail Finance provides point-of-sale finance solutions through long-standing retail partnerships and serves around 1.3 million customers. Business Finance provides specialist secured lending to U.K. SMEs and property investors. Our savings franchise provides a stable and scalable funding base with more than GBP 3 billion of customer deposits. Each business, though, critically, has a clear right to win. Retail Finance combines bank balance sheet strength with fintech capability. Business Finance benefits from specialist expertise and deep customer relationships, and savings utilizes digital technology to unlock a loyal customer base and diversified funding. What is particularly attractive is how these businesses work together. They create a diversified earnings profile, funding stability, and multiple opportunities for disciplined growth.

[Ian Corfield, CEO at Secure Trust Bank PLC]

Our strategy also remains straightforward. We are focused on driving targeted growth for higher returns through three priorities. Firstly, product expansion. We have added products, capabilities, and distribution channels where we see attractive risk-adjusted returns. Secondly, digital capability. Better technology improves the customer experience, increases efficiency, and strengthens scalability. Thirdly, and critically, capital discipline. Every investment decision is assessed against its ability to create shareholder value. These priorities support our medium-term targets of around 10% annual lending growth and our North Star goal, return on average equity above 16%. Now, investors sometimes ask me, What is it that gives you confidence in achieving returns above 16%? Our confidence is built on the fact that delivering this doesn't require a substantive step change or a material investment paying off. There are just four drivers. Firstly, we need to continue business growth at around 10% annually.

[Ian Corfield, CEO at Secure Trust Bank PLC]

That is in line with the group's historic growth rates. Secondly, we need to maintain risk-adjusted margins through disciplined pricing and underwriting. Thirdly, we need to keep a risk-weighted asset mix broadly consistent with today. Finally, we need to leverage our operating platform so that costs grow more slowly than revenues. We have already made meaningful progress against all of those areas. Our return on required equity in the first half was 14.5% and reflects a business that is transitioning from restructuring into growth. As cost savings flow through and capital is deployed into new opportunities, we see a clear path for further improvement. So turning to some of the numbers that we announced today. Our first half performance follows that very clear trajectory to higher returns. Customer lending increased to GBP 3.5 billion, reflecting continued growth in both Retail Finance and Business Finance.

[Ian Corfield, CEO at Secure Trust Bank PLC]

Adjusted profit before tax increased by 9.4% to GBP 31.3 million and risk-adjusted margins remain stable alongside an improvement in cost of risk. Our CET1 ratio, the key capital measure for most banks, increased to 14.3%, providing substantial capital flexibility whilst remaining comfortably above our 13% ambition and of course, well north of regulatory hurdles. We have also begun returning that capital to shareholders through both an increased interim dividend and our share buyback program. Overall, this is a set of results that demonstrates balance. We are growing, we are improving returns, we are managing risk carefully, and we are returning capital.

[Ian Corfield, CEO at Secure Trust Bank PLC]

That is the combination of outcomes that we want to deliver. What I am equally proud of is the strategy that we have put in place and the delivery against that in the first half. On product expansion, we have secured exciting new partnerships with Magnet and Centrica British Gas.

[Ian Corfield, CEO at Secure Trust Bank PLC]

These scale relationships will strongly underpin our previously announced push into point-of-sale credit for home improvements. In Business Finance, we have grown our bridging proposition and launched Speciality Finance. Our deposit business has broadened its distribution by launching our first aggregator partnership via the number one player, Hargreaves Lansdown. On digital delivery, customer adoption of our V12 app continues to increase. We have now got over 666,000 users. Our bridging portal is live, and we are simplifying our technology architecture to improve both efficiency and scalability. On capital discipline, we have completed the first tranche of the buyback program while taking actions that deliver approximately GBP 15 million of annualized run rate savings against the GBP 25 million that we announced we would get to by the end of 2028.

[Ian Corfield, CEO at Secure Trust Bank PLC]

The common theme across all three areas is execution. Rather than focusing on aspirations or intentions, the business is demonstrating measurable progress.

[Ian Corfield, CEO at Secure Trust Bank PLC]

That is the excitement for us, moving from strategy into delivery. The first half has shown we can make that shift, and I will return later on to some of our priorities across the course of Q2. What is also important, though, as you consider Secure Trust, is the guidance that we have given to analysts as to where we are going to land. Critically for me, in amongst the list that is currently displayed on the screen, are the key things that drive us towards our medium-term targets. Where are we going to be on net lending, on RAM, and on CAS? You can see that we have guided in year to where those numbers are going to land. That takes us on the trajectory to those medium-term targets that I talked about earlier. What is also important to look at, though, is of course what analysts are saying.

[Ian Corfield, CEO at Secure Trust Bank PLC]

What are their expectations in terms of the bank? We are covered by three different analysts. All of them have us on a buy recommendation, and essentially that is because what they see is likely increases in PBT, improvements in ROAE as we move to that medium-term target, translating strongly into growth in NAV and value in the bank. Today, we are currently sat at GBP 20.85 in terms of NAV, with a share price sat around GBP 16. I think that probably underlines the value that we think is there in the stock, and clearly that the analysts see as well. We are going to be adding Cavendish to our set of analysts over the course of the coming weeks, and I would urge you to go to their website and check out some of their reports alongside our existing brokers. Analysts can see some of the value being there in the business.

[Ian Corfield, CEO at Secure Trust Bank PLC]

The critical question for all of you is can we repeat the first half results in the second half and ongoing? For us, there are three key priorities. Firstly, we want to make sure that we continue to deliver growth through existing and newly launched products. Secondly, we are going to deliver the next phase of our cost program and technology simplification agenda. Thirdly, we will complete the remaining GBP 5 million tranche of our buyback program from September onwards. While the macroeconomic outlook remains uncertain, we believe Secure Trust Bank is well-positioned. Ultimately, our Retail Finance customer base are high-quality, middle-class borrowers. Our Business Finance portfolio is well-secured, and our savings franchise provides stable and diversified funding. The business model has proved resilient through different economic cycles, and we believe we are well-placed to benefit from any stability or improvement in the broader environment.

[Ian Corfield, CEO at Secure Trust Bank PLC]

Let me close again with the investment case. Secure Trust Bank today is a simpler, more focused, and better capitalized business. We operate in attractive specialist markets. We have multiple opportunities to grow. Credit performance remains resilient. We are reducing costs and increasing efficiency, and we have capital strength to both support growth and increase returns to shareholders. Of course, there remains work to do in ensuring delivery in an unstable macro environment. But the first half demonstrates that our strategy is working. We have delivered strong performance, completed a major strategic transition, and made meaningful progress towards our medium-term goals. I am now going to hand over for questions, and I am delighted that Rachel Lawrence, our CFO, is going to join me in taking your thoughts and questions.

[Operator]

Excellent. Ian, if I may just jump back in there and just bring Rachel on screen for Q&A. Ladies and gentlemen, please do continue to submit your questions just by using the Q&A tab that is situated on the right-hand corner of your screen. But just while the company take a few moments to review those questions that have been submitted already, I just like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A, can all be accessed via your investor dashboards. Guys, as you can see there, we have received a number of questions, and thank you to all of those on the call for taking the time to submit their questions.

[Operator]

But Phil, at this stage, sir, if I may hand over to you to chair the Q&A with the team, and if I pick up from you at the end, that would be great. Thank you.

[Phil Deakin, Strategy and Corporate Development Director at Secure Trust Bank PLC]

Okay. Thank you. Our first question is from Tom W. Tom asks, Where do you see the biggest opportunities to gain market share?

[Ian Corfield, CEO at Secure Trust Bank PLC]

Well, I guess the good thing about Secure Trust Bank is that each of the three markets that we are operating in, we have a relatively small market share of those different spaces. If I go through them, in terms of Retail Finance, we have about a 15%, actually 17% share now in the markets that we were looking to address. However, in areas like home improvements, we have no share of the point-of-sale lending market, and therefore, we are starting from zero and growing from there. So there is a substantive opportunity for us to broaden our growth in that respect. We also have 1.3 million customers, all of whom only have point-of-sale lending with us. So there are opportunities down the track for us to broaden the product base that we market into those customers.

[Ian Corfield, CEO at Secure Trust Bank PLC]

In Business Finance, we have less than a 2% share of a GBP 90 billion market. So there are substantial opportunities there for us to grow, and I guess part of why we broaden the product set in that space is to enable us to take some of those opportunities. In deposits, we have GBP 3 billion of a GBP 2 trillion market. So I think you can probably see that there shouldn't be too many challenges in terms of making sure that our funding growth matches our asset growth.

[Phil Deakin, Strategy and Corporate Development Director at Secure Trust Bank PLC]

Next question is from Matt H. Can you give us some color on the GBP 35 million Speciality Finance pipeline and the type of risk return characteristics you are seeing within that opportunity set?

[Ian Corfield, CEO at Secure Trust Bank PLC]

Yeah, sure. Maybe I will comment, and then Rachel could talk about some of the returns that we are seeing. Ultimately for us, this is a substantial opportunity, that is why we have launched into that space. We have added additional capability into our team to make sure that we can properly assess and underwrite those new deals. We want to make sure that we are lending against quality and established borrowers, and that is our focus. Actually, we have a strong pipeline that reflects exactly that. It is a market that is reasonably well established, but there are still opportunities for new players to take new deals by essentially being able to move and assess those risks effectively. The returns look attractive to us, but Rachel, maybe I will pause at that point and maybe you can comment from that point of view.

[Rachel Lawrence, CFO at Secure Trust Bank PLC]

Yeah. I would agree. The returns are pretty attractive. They follow the same kind of returns that we would see from our wider ABL business, and they are complementary in terms of being able to widen where we can actually lend into within asset-based lending. So very attractive. But as Ian said, we are going into the area carefully and slowly and making sure that we have all the processes and that we understand the risks that we are taking on before we launch too heavily into Speciality Finance.

[Phil Deakin, Strategy and Corporate Development Director at Secure Trust Bank PLC]

Thank you. Next question is from John R. With 19 home improvement retailers already onboarded and further opportunities in the pipeline, what is the typical time lag between signing a partner and seeing meaningful lending volumes?

[Ian Corfield, CEO at Secure Trust Bank PLC]

Well, some of that depends on the partner, to state the obvious. We can integrate very rapidly. That is one of the strengths of our technology. We can literally integrate it overnight with a new partner. But obviously, that depends on their priorities from a tech perspective. Then in terms of us ramping those volumes up, again, you need to build some awareness amongst the customer base. But typically, what we say is in about six weeks between signing and launching, we are seeing substantial ramp-ups in volumes from individual and new customers. I guess the difference with bigger retailers is obviously some of them are on a cyclical basis. So obviously people buy gas boilers, for instance, in the winter, so you are typically going to get more volume through that period of time. Again, it sort of comes back to the sector.

[Ian Corfield, CEO at Secure Trust Bank PLC]

These are not massively long lead times. It is not that you have got a long integration process or that you have got to sit there waiting for volumes to flow because typically we are doing deals with established retailers who already have customers coming through the door. Essentially, we just need to make sure that we get that credit proposition in front of them.

[Phil Deakin, Strategy and Corporate Development Director at Secure Trust Bank PLC]

Okay, thanks. I will move on to the next question, which is again from Tom W. Are there adjacent lending products you could enter using your existing distribution and underwriting capabilities?

[Ian Corfield, CEO at Secure Trust Bank PLC]

Yes, Tom, there definitely are. I think there are in Retail Finance and in Business Finance. I think to your earlier question about returns, ultimately, we are looking for product areas where those, adding them into the set, are going to be accretive to our overall ROE. So we want to make sure that we are focused in any new launch on things that are going to do that. But I think if the underlying question is, are there continued opportunities for growth in the business, I would say very much so. As I say, we have got relatively small market shares of the markets that we are currently seeking to address and opportunities to continue to broaden our footprint over time.

[Ian Corfield, CEO at Secure Trust Bank PLC]

The excitement for me, though, in having the product set that we have now got and could move to over time is less about growth because frankly, having spent 25 years in the industry, anyone can grow a business. But it is about the capacity to choose where you want to grow in order to make sure that you can match your return profile over time. That is the power I think we get from the broader product set that we have, and that I think is what is going to really give the business an extra lift as we go through time.

[Phil Deakin, Strategy and Corporate Development Director at Secure Trust Bank PLC]

Thanks, Ian. We have another question from John R. Are you seeing any increased competitive pressure in your lending markets, and how much pricing discipline are you willing to sacrifice to achieve the 8%-10% growth target?

[Ian Corfield, CEO at Secure Trust Bank PLC]

Well, I think the short answer is our North Star goal is that north of 16% return on equity. We are not prepared to sacrifice much pricing discipline in order to get there. We want to continue to grow. We think we have got great opportunities to grow in an accretive way. But the reason that our targets are set as circa 10% growth in annual net lending, and north of 16% ROAE, is essentially because that second target is the key one for us. If we can get to 16%+ with less than 8% growth, then I am very relaxed about that. This is a business that should be seeing growth because there are opportunities for us to do so in an accretive way, as I say. But ultimately, it is hitting that ROE target that is the critical thing for us as a business.

[Phil Deakin, Strategy and Corporate Development Director at Secure Trust Bank PLC]

Okay. Thanks, Ian. We have no further questions.

[Operator]

Perfect. Guys, if I may just jump back in at this point, and thank you very much indeed for addressing all of those questions that came in from investors this afternoon. Of course, if there are any further questions that do come through, we will make these available to you immediately after the presentation has ended. But Ian, perhaps before, really now just looking to redirect those on the call to provide you with their feedback, which I know is particularly important to yourself and the company, if I could please just ask you for a few closing comments just to wrap up with, that would be great.

[Ian Corfield, CEO at Secure Trust Bank PLC]

Yeah, sure. Thanks ever so much, and I appreciate everyone giving us some time this afternoon. I guess what I would just say is Secure Trust Bank, which this may be your first introduction to it, we have got an experienced leadership team. We have got a clear strategy. We are doing what we said we would do. Our priorities in the second half are very clear, and I think, as you can see in terms of where analysts are placing the stock, there is very real value here. And I hope you will consider us as a home for your investments as we go forward.

[Operator]

Perfect. Ian, that's great. Thank you once again for updating investors this afternoon. Could I please ask investors not to close this session, as you will now be automatically redirected for the opportunity to provide your feedback in order the management team can really better understand your views and expectations. This will only take a few moments to complete, but I am sure it will be greatly valued by the company. On behalf of the management team of Secure Trust Bank PLC, we would like to thank you for attending today's presentation. That now concludes today's session, so good afternoon to you all.

Participants

Executives

• Ian Corfield, CEO
• Phil Deakin, Strategy and Corporate Development Director
• Rachel Lawrence, CFO